Trex (NYSE:TREX) Hits New 1-Year High on Strong Earnings

Trex Company, Inc. (NYSE:TREX)’s share price hit a new 52-week high during trading on Wednesday after the company announced better than expected quarterly earnings. The company traded as high as $55.56 and last traded at $55.2270, with a volume of 537,410 shares. The stock had previously closed at $50.00.

The construction company reported $0.55 earnings per share for the quarter, beating analysts’ consensus estimates of $0.48 by $0.07. Trex had a return on equity of 18.03% and a net margin of 14.68%. The business had revenue of $359.50 million during the quarter, compared to analysts’ expectations of $314.86 million. During the same quarter last year, the business posted $0.51 earnings per share. The business’s revenue for the quarter was up 26.0% on a year-over-year basis.

Analyst Ratings Changes

Several research firms recently weighed in on TREX. BMO Capital Markets set a $57.00 target price on Trex in a research report on Wednesday, August 5th. Weiss Ratings raised shares of Trex from a “hold (c-)” rating to a “hold (c)” rating in a research report on Tuesday, September 1st. Barclays reissued an “underweight” rating and issued a $42.00 target price (up from $36.00) on shares of Trex in a research report on Tuesday, July 14th. The Goldman Sachs Group reaffirmed a “buy” rating and set a $56.00 price target (up from $49.00) on shares of Trex in a research report on Friday, July 10th. Finally, Wall Street Zen raised shares of Trex from a “sell” rating to a “hold” rating in a research note on Sunday, July 12th. Thirteen analysts have rated the stock with a Buy rating, eight have issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus price target of $50.48.

Insider Buying and Selling at Trex

In other Trex news, SVP Amy M. Fernandez sold 1,050 shares of Trex stock in a transaction that occurred on Friday, August 7th. The stock was sold at an average price of $50.07, for a total transaction of $52,573.50. Following the sale, the senior vice president directly owned 67,794 shares in the company, valued at $3,394,445.58. The trade was a 1.53% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 0.93% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Trex

Several institutional investors and hedge funds have recently bought and sold shares of the business. Versant Capital Management Inc bought a new stake in shares of Trex during the second quarter valued at about $58,000. Ascentis Independent Advisors acquired a new position in Trex during the 1st quarter valued at about $44,000. Elevation Wealth Partners LLC increased its stake in Trex by 250.7% during the 3rd quarter. Elevation Wealth Partners LLC now owns 1,224 shares of the construction company’s stock valued at $53,000 after buying an additional 875 shares during the period. GAMMA Investing LLC increased its stake in Trex by 104.7% during the 3rd quarter. GAMMA Investing LLC now owns 1,269 shares of the construction company’s stock valued at $55,000 after buying an additional 649 shares during the period. Finally, IFP Advisors Inc raised its position in shares of Trex by 76.0% during the 2nd quarter. IFP Advisors Inc now owns 1,584 shares of the construction company’s stock worth $79,000 after buying an additional 684 shares in the last quarter. Institutional investors and hedge funds own 95.96% of the company’s stock.

Trex Trading Up 9.6%

The company has a market capitalization of $5.69 billion, a P/E ratio of 32.62, a P/E/G ratio of 2.93 and a beta of 1.46. The business’s 50-day simple moving average is $45.74 and its 200 day simple moving average is $43.23.

Trex Company Profile

Trex Company, Inc is a manufacturer of composite decking and outdoor living products. Its offerings are designed as alternatives to traditional wood and include residential and commercial decking, railing systems, outdoor lighting, and related accessories.

The company’s products are marketed under the Trex brand and include decking lines such as Trex Transcend, Trex Select, and Trex Enhance. Trex composite products are made primarily from recycled wood fibers and recycled polyethylene plastics, supporting the company’s focus on low-maintenance and environmentally oriented outdoor building materials.

Founded in 1996 and headquartered in Winchester, Virginia, Trex serves customers through a network of distributors, dealers, retailers, contractors, and building professionals.