Trex (NYSE:TREX) Hits New 12-Month High – Here’s Why

Shares of Trex Company, Inc. (NYSE:TREX) reached a new 52-week high during trading on Thursday. The stock traded as high as $51.10 and last traded at $51.0770, with a volume of 2,218,764 shares changing hands. The stock had previously closed at $48.83.

Wall Street Analysts Forecast Growth

TREX has been the subject of several analyst reports. Zacks Research cut Trex from a “strong-buy” rating to a “hold” rating in a report on Monday, September 14th. DA Davidson reiterated a “buy” rating and issued a $55.00 price objective on shares of Trex in a report on Tuesday, July 14th. Bank of America raised their price target on Trex from $42.00 to $44.00 and gave the stock an “underperform” rating in a research note on Tuesday, July 14th. Wall Street Zen upgraded shares of Trex from a “sell” rating to a “hold” rating in a report on Sunday, July 12th. Finally, Deutsche Bank Aktiengesellschaft upgraded shares of Trex from a “hold” rating to a “buy” rating and raised their price objective for the stock from $53.00 to $57.00 in a report on Thursday, October 8th. Thirteen research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus target price of $50.48.

Trex Trading Down 1.3%

The firm has a fifty day moving average of $45.35 and a 200 day moving average of $44.07. The company has a market capitalization of $5.24 billion, a P/E ratio of 30.02, a P/E/G ratio of 2.96 and a beta of 1.48.

Trex (NYSE:TREX) last posted its earnings results on Tuesday, August 4th. The construction company reported $0.62 EPS for the quarter, missing analysts’ consensus estimates of $0.63 by ($0.01). Trex had a return on equity of 18.03% and a net margin of 14.68%. The company had revenue of $418.02 million during the quarter, compared to the consensus estimate of $415.71 million. During the same period last year, the firm posted $0.71 EPS. The company’s revenue for the quarter was up 7.8% on a year-over-year basis. Sell-side analysts anticipate that Trex Company, Inc. will post 1.77 EPS for the current fiscal year.

Insider Buying and Selling at Trex

In other Trex news, SVP Amy M. Fernandez sold 1,050 shares of the company’s stock in a transaction that occurred on Friday, August 7th. The shares were sold at an average price of $50.07, for a total value of $52,573.50. Following the completion of the transaction, the senior vice president directly owned 67,794 shares in the company, valued at $3,394,445.58. This represents a 1.53% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 0.93% of the stock is currently owned by insiders.

Institutional Trading of Trex

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. BlackRock Inc. purchased a new stake in Trex in the 2nd quarter worth approximately $525,081,000. Wellington Management Group LLP grew its position in shares of Trex by 18.2% during 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 acquiring an additional 1,518,338 shares during the period. Bank of America Corp DE acquired a new position in Trex in the 2nd quarter worth about $94,851,000. Freestone Grove Partners LP purchased a new position in Trex during the second quarter worth approximately $36,197,000. Finally, Fort Washington Investment Advisors Inc. OH acquired a new stake in Trex in the third quarter valued at approximately $32,858,000. Institutional investors own 95.96% of the company’s stock.

Trex Company Profile

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.