Trex (NYSE:TREX) Trading 7.9% Higher – Still a Buy?

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

Analyst Ratings Changes

A number of analysts have recently weighed in on TREX shares. Deutsche Bank Aktiengesellschaft lowered shares of Trex from a “buy” rating to a “hold” rating and set a $40.00 price target for the company. in a research note on Wednesday, November 5th. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Trex in a research note on Monday, December 29th. Jefferies Financial Group upgraded Trex from a “hold” rating to a “buy” rating and lifted their price target for the company from $39.00 to $42.00 in a research report on Monday, December 15th. Wolfe Research upgraded Trex from a “peer perform” rating to an “outperform” rating and set a $47.00 price objective for the company in a report on Wednesday. Finally, Bank of America reaffirmed an “underperform” rating and set a $36.00 target price (down from $67.00) on shares of Trex in a report on Wednesday, November 5th. One analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, ten have given a Hold rating and four have given a Sell rating to the company. According to data from MarketBeat.com, Trex has an average rating of “Hold” and an average price target of $48.35.

Trex Price Performance

The firm’s fifty day simple moving average is $34.96 and its 200 day simple moving average is $50.09. The company has a market capitalization of $4.47 billion, a price-to-earnings ratio of 22.66 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 EPS for the quarter, missing the consensus estimate of $0.57 by ($0.06). Trex had a net margin of 16.76% and a return on equity of 21.90%. The firm had revenue of $285.35 million during the quarter, compared to analysts’ expectations of $301.74 million. During the same quarter last year, the company posted $0.37 EPS. The firm’s revenue was up 22.1% compared to the same quarter last year. Equities research analysts forecast that Trex Company, Inc. will post 2.04 earnings per share for the current fiscal year.

Insider Activity at Trex

In other Trex news, CFO Prithvi Gandhi purchased 15,000 shares of the stock in a transaction dated Friday, November 14th. The shares were acquired at an average price of $31.92 per share, for a total transaction of $478,800.00. Following the completion of the acquisition, the chief financial officer 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 Securities & Exchange Commission, which can be accessed through this link. 0.71% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of TREX. Alliancebernstein L.P. grew its stake in shares of Trex by 1.9% in the 3rd quarter. Alliancebernstein L.P. now owns 7,543,925 shares of the construction company’s stock valued at $389,795,000 after buying an additional 142,215 shares in the last quarter. American Century Companies Inc. grew its position in Trex by 2.5% in the third quarter. American Century Companies Inc. now owns 2,191,472 shares of the construction company’s stock worth $113,233,000 after acquiring an additional 53,554 shares in the last quarter. Wellington Management Group LLP increased its stake in shares of Trex by 86.8% during the 3rd quarter. Wellington Management Group LLP now owns 1,974,096 shares of the construction company’s stock worth $102,002,000 after purchasing an additional 917,448 shares during the last quarter. Impax Asset Management Group plc increased its stake in shares of Trex by 93.0% during the 3rd quarter. Impax Asset Management Group plc now owns 1,934,581 shares of the construction company’s stock worth $99,354,000 after purchasing an additional 932,247 shares during the last quarter. Finally, Madison Asset Management LLC raised its holdings in shares of Trex by 1.2% during the 3rd quarter. Madison Asset Management LLC now owns 1,893,081 shares of the construction company’s stock valued at $97,815,000 after purchasing an additional 22,027 shares in the last quarter. 95.96% of the stock is owned by institutional investors and hedge funds.

Trex Company Profile

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.