Trex (NYSE:TREX) Sets New 12-Month High – Still a Buy?

Trex Company, Inc. (NYSE:TREX)’s share price reached a new 52-week high during trading on Thursday. The company traded as high as $51.12 and last traded at $50.80, with a volume of 167,892 shares. The stock had previously closed at $49.54.

Analyst Upgrades and Downgrades

A number of equities analysts have weighed in on TREX shares. Melius Research initiated coverage on Trex in a research report on Tuesday, October 6th. They issued a “buy” rating and a $62.00 target price for the company. Wall Street Zen raised shares of Trex from a “sell” rating to a “hold” rating in a report on Sunday, July 12th. Weiss Ratings upgraded shares of Trex from a “hold (c-)” rating to a “hold (c)” rating in a research note on Tuesday, September 1st. Bank of America boosted their price objective on shares of Trex from $42.00 to $44.00 and gave the company an “underperform” rating in a report on Tuesday, July 14th. Finally, Stephens increased their price objective on shares of Trex from $45.00 to $50.00 and gave the company an “equal weight” rating in a research report on Tuesday, July 28th. Thirteen investment analysts have rated the stock with a Buy rating, eight have issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $50.48.

Trex Stock Performance

The company has a market cap of $5.32 billion, a P/E ratio of 30.46, a P/E/G ratio of 2.95 and a beta of 1.48. The firm’s fifty day moving average is $45.62 and its two-hundred day moving average is $43.16.

Trex (NYSE:TREX) last issued its earnings results on Tuesday, August 4th. The construction company reported $0.62 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.63 by ($0.01). Trex had a net margin of 14.68% and a return on equity of 18.03%. The business had revenue of $418.02 million for the quarter, compared to the consensus estimate of $415.71 million. During the same period last year, the business posted $0.71 EPS. The firm’s revenue for the quarter was up 7.8% compared to the same quarter last year. On average, equities research analysts expect that Trex Company, Inc. will post 1.77 EPS for the current year.

Insider Buying and Selling

In other news, SVP Amy M. Fernandez sold 1,050 shares of the company’s 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 transaction, the senior vice president owned 67,794 shares of the company’s stock, valued at approximately $3,394,445.58. This represents a 1.53% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. 0.93% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the company. BlackRock Inc. acquired a new stake in Trex in the second quarter valued at approximately $525,081,000. Bank of America Corp DE purchased a new stake in shares of Trex in the 2nd quarter valued at approximately $94,851,000. Wellington Management Group LLP raised its holdings in shares of Trex by 18.2% in the 2nd quarter. Wellington Management Group LLP now owns 9,877,116 shares of the construction company’s stock valued at $494,251,000 after purchasing an additional 1,518,338 shares in the last quarter. Fort Washington Investment Advisors Inc. OH purchased a new position in shares of Trex in the 3rd quarter valued at about $32,858,000. Finally, Freestone Grove Partners LP purchased a new stake in shares of Trex during the 2nd quarter worth approximately $36,197,000. 95.96% of the stock is currently owned by hedge funds and other institutional investors.

About Trex

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.