Trex (NYSE:TREX) Stock Price Breaks Above Two Hundred Day Moving Average – Should You Sell?

Trex Company, Inc. (NYSE:TREX) shares passed above its 200-day moving average during trading on Tuesday. The stock has a 200-day moving average of $43.47 and traded as high as $45.54. Trex shares last traded at $45.0320, with a volume of 1,008,262 shares traded.

Analyst Ratings Changes

Several brokerages recently weighed in on TREX. Stifel Nicolaus set a $49.00 target price on Trex and gave the company a “hold” rating in a research note on Tuesday, August 11th. Weiss Ratings upgraded shares of Trex from a “hold (c-)” rating to a “hold (c)” rating in a research report on Tuesday, September 1st. Citigroup restated a “neutral” rating and set a $52.00 price objective (up from $43.00) on shares of Trex in a research report on Wednesday, July 15th. DA Davidson restated a “buy” rating and set a $55.00 price objective on shares of Trex in a research report on Tuesday, July 14th. Finally, Melius Research began coverage on shares of Trex in a research note on Tuesday, October 6th. They issued a “buy” rating and a $62.00 price objective on the stock. Twelve equities research analysts have rated the stock with a Buy rating, nine have given a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $50.19.

Trex Stock Up 4.2%

The stock’s 50-day moving average is $45.50 and its 200 day moving average is $43.52. The stock has a market capitalization of $4.80 billion, a PE ratio of 27.52, a P/E/G ratio of 2.63 and a beta of 1.48.

Trex (NYSE:TREX) last released its quarterly earnings data 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 firm had revenue of $418.02 million during the quarter, compared to analyst estimates of $415.71 million. During the same quarter in the prior year, the company posted $0.71 EPS. The company’s quarterly revenue was up 7.8% on a year-over-year basis. As a group, equities research analysts forecast that Trex Company, Inc. will post 1.76 EPS for the current year.

Insider Buying and Selling

In other Trex news, SVP Amy M. Fernandez sold 1,050 shares of the stock in a transaction on Friday, August 7th. The shares were sold at an average price of $50.07, for a total transaction of $52,573.50. Following the transaction, the senior vice president directly owned 67,794 shares of the company’s stock, valued at $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 is available through the SEC website. 0.93% of the stock is owned by insiders.

Institutional Trading of Trex

Large investors have recently made changes to their positions in the stock. Ascentis Independent Advisors acquired a new position in Trex during the 1st quarter worth $44,000. Elevation Wealth Partners LLC grew its position in shares of Trex by 250.7% in the third quarter. Elevation Wealth Partners LLC now owns 1,224 shares of the construction company’s stock valued at $53,000 after purchasing an additional 875 shares during the last quarter. GAMMA Investing LLC grew its position in shares of Trex by 104.7% in the third quarter. GAMMA Investing LLC now owns 1,269 shares of the construction company’s stock valued at $55,000 after purchasing an additional 649 shares during the last quarter. Versant Capital Management Inc acquired a new stake in shares of Trex in the second quarter valued at about $58,000. Finally, Parallel Advisors LLC increased its stake in shares of Trex by 77.6% in the first quarter. Parallel Advisors LLC now owns 2,120 shares of the construction company’s stock worth $77,000 after purchasing an additional 926 shares during the period. Institutional investors own 95.96% of the company’s stock.

About Trex

Trex Company, Inc designs, manufactures and distributes composite decking, railing and related outdoor-living products. Its portfolio includes residential and commercial decking systems, railing, outdoor lighting, furniture, and other accessories sold under the Trex brand. The company’s products are positioned as alternatives to traditional wood and are designed to provide durability and lower maintenance.

Trex composite products are made primarily from reclaimed wood fibers and recycled polyethylene film, including materials such as used plastic bags and packaging.