Trex (NYSE:TREX) Stock Price Up 7.9% – Here’s Why

Trex Company, Inc. (NYSE:TREX) shares were up 7.9% during mid-day trading on Thursday . The company traded as high as $39.27 and last traded at $39.41. Approximately 773,145 shares were traded during trading, a decline of 58% from the average daily volume of 1,859,824 shares. The stock had previously closed at $36.52.

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on TREX shares. Zacks Research downgraded shares of Trex from a “hold” rating to a “strong sell” rating in a research report on Monday, October 13th. DA Davidson set a $45.00 target price on shares of Trex and gave the company a “neutral” rating in a research note on Wednesday, November 5th. Stifel Nicolaus reissued a “hold” rating and issued a $35.00 price objective (down from $61.00) on shares of Trex in a report on Monday, November 10th. Wolfe Research raised Trex from a “peer perform” rating to an “outperform” rating and set a $47.00 price target on the stock in a research report on Wednesday. Finally, Citigroup decreased their price objective on shares of Trex from $52.00 to $39.00 and set a “neutral” rating for the company in a report on Monday, December 15th. One analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, ten have assigned a Hold rating and four have assigned a Sell rating to the company’s stock. According to data from MarketBeat, Trex presently has an average rating of “Hold” and a consensus price target of $48.35.

Trex Stock Up 8.0%

The business’s 50 day moving average is $35.28 and its two-hundred day moving average is $50.26. The firm has a market capitalization of $4.23 billion, a P/E ratio of 21.49 and a beta of 1.55.

Trex (NYSE:TREX) last issued its quarterly earnings results on Tuesday, November 4th. The construction company reported $0.51 earnings per share for the quarter, missing analysts’ consensus estimates of $0.57 by ($0.06). Trex had a return on equity of 21.90% and a net margin of 16.76%.The company had revenue of $285.35 million during the quarter, compared to analyst estimates of $301.74 million. During the same period in the prior year, the company posted $0.37 earnings per share. The company’s revenue was up 22.1% on a year-over-year basis. As a group, equities analysts anticipate that Trex Company, Inc. will post 2.04 earnings per share for the current fiscal year.

Insider Buying and Selling at Trex

In other news, CFO Prithvi Gandhi bought 15,000 shares of the firm’s stock in a transaction that occurred on Friday, November 14th. The stock was acquired at an average price of $31.92 per share, with a total value of $478,800.00. Following the completion of the purchase, the chief financial officer directly owned 30,664 shares of the company’s stock, valued at $978,794.88. This represents a 95.76% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available through the SEC website. 0.71% of the stock is currently owned by company insiders.

Institutional Trading of Trex

Hedge funds have recently bought and sold shares of the company. Wealth Enhancement Advisory Services LLC lifted its position in shares of Trex by 71.7% in the 4th quarter. Wealth Enhancement Advisory Services LLC now owns 47,149 shares of the construction company’s stock valued at $1,776,000 after acquiring an additional 19,688 shares in the last quarter. NorthCrest Asset Manangement LLC purchased a new stake in shares of Trex in the fourth quarter valued at $282,000. Green Alpha Advisors LLC boosted its position in shares of Trex by 11.2% in the fourth quarter. Green Alpha Advisors LLC now owns 18,632 shares of the construction company’s stock worth $654,000 after buying an additional 1,879 shares during the period. Mirova grew its holdings in shares of Trex by 4.6% during the third quarter. Mirova now owns 38,116 shares of the construction company’s stock valued at $1,969,000 after buying an additional 1,673 shares in the last quarter. Finally, Allworth Financial LP raised its position in Trex by 127.0% during the third quarter. Allworth Financial LP now owns 2,159 shares of the construction company’s stock valued at $112,000 after buying an additional 1,208 shares during the period. 95.96% of the stock is owned by hedge funds and other institutional investors.

About Trex

Trex Company, Inc is a leading manufacturer of wood-alternative decking and railing systems designed for residential and commercial outdoor living environments. The company’s core offerings feature composite decking products made from a proprietary blend of recycled wood fibers and plastic film, which deliver enhanced durability, resistance to rot and insect damage, and low maintenance compared to traditional wood. Trex also provides matching railing, lighting, fencing and cladding solutions that allow customers to create cohesive, high-performance outdoor spaces.

Trex’s product portfolio is organized into multiple performance tiers, including premium, mid-range and value-oriented lines.