Trex (NYSE:TREX) Upgraded to Buy at UBS Group

UBS Group upgraded shares of Trex (NYSE:TREX) from a neutral rating to a buy rating in a research note published on Tuesday morning, Marketbeat Ratings reports. They currently have $52.00 target price on the construction company’s stock, up from their previous target price of $50.00.

Several other research analysts also recently weighed in on TREX. Citigroup lowered their target price on Trex from $52.00 to $39.00 and set a “neutral” rating on the stock in a research note on Monday, December 15th. Vertical Research cut shares of Trex from a “buy” rating to a “hold” rating and set a $32.00 price objective on the stock. in a research note on Wednesday, November 5th. Deutsche Bank Aktiengesellschaft downgraded shares of Trex from a “buy” rating to a “hold” rating and set a $40.00 price target on the stock. in a report on Wednesday, November 5th. JPMorgan Chase & Co. reduced their target price on shares of Trex from $71.00 to $40.00 and set a “neutral” rating on the stock in a report on Thursday, November 6th. Finally, DA Davidson set a $45.00 target price on Trex and gave the company a “neutral” rating in a research note on Wednesday, November 5th. One analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, ten have assigned a Hold rating and four have given a Sell rating to the company’s stock. According to data from MarketBeat, Trex currently has an average rating of “Hold” and an average target price of $49.25.

Trex Stock Up 0.8%

Shares of NYSE:TREX opened at $37.79 on Tuesday. The firm’s 50 day moving average price is $35.52 and its 200 day moving average price is $50.36. The stock has a market cap of $4.05 billion, a price-to-earnings ratio of 20.60 and a beta of 1.55. Trex has a fifty-two week low of $29.77 and a fifty-two week high of $75.55.

Trex (NYSE:TREX) last posted its quarterly earnings results on Tuesday, November 4th. The construction company reported $0.51 earnings per share for the quarter, missing analysts’ consensus estimates of $0.57 by ($0.06). Trex had a net margin of 16.76% and a return on equity of 21.90%. The business had revenue of $285.35 million during the quarter, compared to analyst estimates of $301.74 million. During the same quarter in the prior year, the business earned $0.37 earnings per share. The firm’s quarterly revenue was up 22.1% on a year-over-year basis. On average, equities analysts anticipate that Trex will post 2.04 EPS for the current year.

Insider Transactions at Trex

In other news, CFO Prithvi Gandhi acquired 15,000 shares of the company’s stock in a transaction that occurred on Friday, November 14th. The shares were purchased 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 approximately $978,794.88. This represents a 95.76% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Insiders own 0.74% of the company’s stock.

Hedge Funds Weigh In On Trex

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. CWM LLC raised its holdings in Trex by 16.8% during the 2nd quarter. CWM LLC now owns 1,141 shares of the construction company’s stock valued at $62,000 after buying an additional 164 shares during the last quarter. AQR Capital Management LLC boosted its holdings in shares of Trex by 3.2% during the first quarter. AQR Capital Management LLC now owns 5,642 shares of the construction company’s stock worth $320,000 after purchasing an additional 177 shares during the period. ProShare Advisors LLC grew its stake in shares of Trex by 4.1% in the second quarter. ProShare Advisors LLC now owns 4,754 shares of the construction company’s stock worth $259,000 after purchasing an additional 189 shares during the last quarter. Louisiana State Employees Retirement System increased its holdings in Trex by 0.7% during the 2nd quarter. Louisiana State Employees Retirement System now owns 30,200 shares of the construction company’s stock valued at $1,642,000 after purchasing an additional 200 shares during the period. Finally, State of Michigan Retirement System lifted its holdings in Trex by 0.8% in the 2nd quarter. State of Michigan Retirement System now owns 25,822 shares of the construction company’s stock worth $1,404,000 after buying an additional 200 shares during the period. 95.96% of the stock is currently owned by institutional investors and hedge funds.

About Trex

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.