Zacks Research Upgrades Trex (NYSE:TREX) to Hold

Trex (NYSE:TREX) was upgraded by equities research analysts at Zacks Research from a “strong sell” rating to a “hold” rating in a research report issued to clients and investors on Tuesday,Zacks.com reports.

Several other equities research analysts have also weighed in on the company. Robert W. Baird set a $48.00 price objective on Trex in a research note on Monday, January 12th. Jefferies Financial Group raised Trex from a “hold” rating to a “buy” rating and upped their target price for the company from $39.00 to $42.00 in a report on Monday, December 15th. Wall Street Zen lowered Trex from a “hold” rating to a “sell” rating in a research report on Saturday, January 10th. Barclays set a $32.00 price target on Trex in a research note on Monday, December 8th. Finally, B. Riley reaffirmed a “buy” rating and set a $57.00 price objective (down from $80.00) on shares of Trex in a research note on Wednesday, November 5th. Ten investment analysts have rated the stock with a Buy rating, ten have issued a Hold rating and three have issued a Sell rating to the company’s stock. According to MarketBeat.com, Trex currently has an average rating of “Hold” and a consensus target price of $47.25.

Trex Price Performance

Shares of TREX opened at $43.81 on Tuesday. The firm’s 50 day moving average is $38.11 and its 200-day moving average is $47.95. Trex has a 12-month low of $29.77 and a 12-month high of $73.56. The stock has a market capitalization of $4.70 billion, a P/E ratio of 23.81 and a beta of 1.58.

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

Insider Buying and Selling at Trex

In related news, CFO Prithvi Gandhi purchased 15,000 shares of Trex stock in a transaction dated Friday, November 14th. The stock was acquired at an average cost of $31.92 per share, with a total value of $478,800.00. Following the completion of the transaction, the chief financial officer directly owned 30,664 shares of the company’s stock, valued at $978,794.88. This trade represents a 95.76% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. 0.71% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in TREX. Sequoia Financial Advisors LLC boosted its stake in shares of Trex by 103.2% during the 4th quarter. Sequoia Financial Advisors LLC now owns 8,886 shares of the construction company’s stock valued at $312,000 after buying an additional 4,514 shares during the period. Premier Fund Managers Ltd raised its holdings in shares of Trex by 201.9% during the fourth quarter. Premier Fund Managers Ltd now owns 9,451 shares of the construction company’s stock worth $336,000 after acquiring an additional 6,321 shares in the last quarter. Principal Financial Group Inc. raised its holdings in shares of Trex by 32.1% during the fourth quarter. Principal Financial Group Inc. now owns 1,098,189 shares of the construction company’s stock worth $38,524,000 after acquiring an additional 266,580 shares in the last quarter. State of New Jersey Common Pension Fund D boosted its position in Trex by 76.8% during the fourth quarter. State of New Jersey Common Pension Fund D now owns 69,509 shares of the construction company’s stock valued at $2,438,000 after purchasing an additional 30,191 shares during the last quarter. Finally, M&T Bank Corp purchased a new position in Trex in the fourth quarter valued at about $206,000. Institutional investors and hedge funds own 95.96% of the company’s stock.

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.