JPMorgan Chase & Co. Cuts Trex (NYSE:TREX) Price Target to $40.00

Trex (NYSE:TREX) had its price target trimmed by JPMorgan Chase & Co. from $71.00 to $40.00 in a report issued on Thursday morning,Benzinga reports. The brokerage currently has a neutral rating on the construction company’s stock.

Several other brokerages have also recently commented on TREX. Zelman & Associates cut shares of Trex from an “outperform” rating to a “neutral” rating in a research report on Wednesday. Truist Financial decreased their price target on shares of Trex from $75.00 to $50.00 and set a “buy” rating on the stock in a research report on Wednesday. Benchmark dropped their price target on Trex from $80.00 to $40.00 and set a “buy” rating on the stock in a report on Wednesday. Zacks Research downgraded Trex from a “hold” rating to a “strong sell” rating in a research report on Monday, October 13th. Finally, The Goldman Sachs Group set a $63.00 target price on Trex and gave the stock a “buy” rating in a report on Wednesday. One research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, eleven have given a Hold rating and four have assigned a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of “Hold” and a consensus target price of $53.89.

Trex Price Performance

Shares of NYSE:TREX opened at $32.93 on Thursday. The stock has a market cap of $3.53 billion, a price-to-earnings ratio of 19.03, a PEG ratio of 2.02 and a beta of 1.49. Trex has a 12 month low of $31.21 and a 12 month high of $80.74. The stock’s 50 day moving average price is $52.35 and its 200 day moving average price is $57.20.

Trex (NYSE:TREX) last issued its quarterly earnings results on Tuesday, November 4th. The construction company reported $0.51 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.57 by ($0.06). Trex had a net margin of 16.53% and a return on equity of 21.27%. The firm had revenue of $285.35 million for the quarter, compared to analyst estimates of $301.74 million. During the same quarter last year, the business posted $0.37 earnings per share. The firm’s revenue for the quarter was up 22.1% compared to the same quarter last year. Trex has set its FY 2025 guidance at EPS. Q4 2025 guidance at EPS. On average, sell-side analysts expect that Trex will post 2.04 EPS for the current year.

Hedge Funds Weigh In On Trex

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Price T Rowe Associates Inc. MD lifted its holdings in shares of Trex by 132.8% in the first quarter. Price T Rowe Associates Inc. MD now owns 7,297,863 shares of the construction company’s stock valued at $424,007,000 after purchasing an additional 4,163,014 shares in the last quarter. Madison Asset Management LLC acquired a new position in Trex during the first quarter valued at $109,852,000. Norges Bank acquired a new position in Trex during the second quarter valued at $54,795,000. Impax Asset Management Group plc lifted its stake in Trex by 93.0% in 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 acquiring an additional 932,247 shares in the last quarter. Finally, American Century Companies Inc. boosted its position in Trex by 66.1% during the 1st quarter. American Century Companies Inc. now owns 1,972,125 shares of the construction company’s stock worth $114,580,000 after acquiring an additional 784,820 shares during the period. 95.96% of the stock is currently owned by hedge funds and other institutional investors.

About Trex

Trex Company, Inc manufactures and distributes composite decking, railing, and outdoor living products and accessories for residential and commercial markets in the United States. It offers decking products and accessories under the names Trex Transcend, Trex Select, Trex Signature, Trex Transcend Lineage, and Trex Enhance for protection against fading, staining, mold, and scratching; Trex Hideaway, a hidden fastening system; and Trex DeckLighting, a LED dimmable deck lighting for use on posts, floors, and steps.