Trex (NYSE:TREX) Stock Gets Downgrade from DA Davidson

Trex (NYSE:TREX) was downgraded by equities research analysts at DA Davidson from a “buy” rating to a “neutral” rating in a research note issued to investors on Tuesday, FinViz reports.

Other equities research analysts have also issued reports about the stock. Zacks Research lowered shares of Trex from a “strong-buy” rating to a “hold” rating in a research report on Monday, September 14th. BMO Capital Markets set a $57.00 price target on shares of Trex in a report on Wednesday, August 5th. Deutsche Bank Aktiengesellschaft upgraded shares of Trex from a “hold” rating to a “buy” rating and raised their price objective for the company from $53.00 to $57.00 in a research report on Thursday, October 8th. Truist Financial lifted their price objective on shares of Trex from $60.00 to $75.00 and gave the stock a “buy” rating in a report on Thursday, November 5th. Finally, Melius Research assumed coverage on shares of Trex in a research report on Tuesday, October 6th. They issued a “buy” rating and a $62.00 target price for the company. Twelve analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, Trex has an average rating of “Moderate Buy” and a consensus price target of $55.18.

Trex Stock Performance

Shares of TREX opened at $58.77 on Tuesday. Trex has a 52-week low of $29.77 and a 52-week high of $60.21. The stock’s 50-day simple moving average is $46.57 and its 200 day simple moving average is $43.50. The stock has a market capitalization of $6.11 billion, a price-to-earnings ratio of 31.75, a price-to-earnings-growth ratio of 3.32 and a beta of 1.46.

Trex (NYSE:TREX) last announced its quarterly earnings results on Wednesday, November 4th. The construction company reported $0.55 earnings per share for the quarter, beating the consensus estimate of $0.48 by $0.07. Trex had a return on equity of 18.27% and a net margin of 13.89%. The firm had revenue of $359.50 million for the quarter, compared to analysts’ expectations of $314.86 million. During the same period in the prior year, the business posted $0.51 earnings per share. The company’s revenue was up 26.0% on a year-over-year basis. On average, research analysts forecast that Trex will post 1.82 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Trex news, SVP Jacob Rudolph sold 1,969 shares of the firm’s stock in a transaction on Monday, November 9th. The shares were sold at an average price of $59.07, for a total value of $116,308.83. Following the sale, the senior vice president owned 37,462 shares of the company’s stock, valued at $2,212,880.34. This trade represents a 4.99% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Adam Zambanini sold 500 shares of the business’s stock in a transaction dated Monday, November 9th. The shares were sold at an average price of $55.84, for a total transaction of $27,920.00. Following the completion of the transaction, the chief executive officer owned 235,505 shares in the company, valued at $13,150,599.20. The trade was a 0.21% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 3,700 shares of company stock valued at $215,467 in the last quarter. Insiders own 0.93% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the business. Chicago Partners Investment Group LLC increased its position in Trex by 1.1% during the 3rd quarter. Chicago Partners Investment Group LLC now owns 21,868 shares of the construction company’s stock valued at $1,102,000 after buying an additional 247 shares in the last quarter. Citizens Financial Group Inc. RI boosted its holdings in Trex by 5.5% in the third quarter. Citizens Financial Group Inc. RI now owns 5,369 shares of the construction company’s stock worth $234,000 after acquiring an additional 280 shares in the last quarter. Parallel Advisors LLC boosted its holdings in Trex by 10.3% in the third quarter. Parallel Advisors LLC now owns 4,103 shares of the construction company’s stock worth $179,000 after acquiring an additional 382 shares in the last quarter. Hantz Financial Services Inc. grew its stake in shares of Trex by 3.5% during the third quarter. Hantz Financial Services Inc. now owns 12,827 shares of the construction company’s stock worth $559,000 after acquiring an additional 437 shares during the last quarter. Finally, Byrne Asset Management LLC grew its stake in shares of Trex by 21.0% during the third quarter. Byrne Asset Management LLC now owns 3,686 shares of the construction company’s stock worth $160,000 after acquiring an additional 639 shares during the last quarter. Hedge funds and other institutional investors own 95.96% of the company’s stock.

Trex News Roundup

Here are the key news stories impacting Trex this week:

• Positive Sentiment: Trex reported third-quarter net sales of about $360 million, up 26% year over year, and earnings per share of $0.55, above the $0.48 consensus estimate. An initial distribution load-in contributed $30 million to sales, so some of the growth may reflect a one-time benefit rather than ongoing demand. Trex: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: An analyst raised Trex’s price target to $59, signaling a more favorable view of the shares. Trex Price Target Raised to $59.00
• Negative Sentiment: CEO Adam Zambanini and SVPs Jacob Rudolph and Amy Fernandez reported share sales. The transactions reduced their individual holdings by roughly 0.2% to 5%; each executive retained substantial shares, making the sales a limited potential warning signal. CEO Form 4 filing SVP Form 4 filing

Trex Company Profile