Trex (NYSE:TREX) Stock Price Down 5.9% on Insider Selling

Trex Company, Inc. (NYSE:TREX)’s share price was down 5.9% during mid-day trading on Tuesday following insider selling activity. The company traded as low as $55.21 and last traded at $55.2820. Approximately 266,030 shares traded hands during mid-day trading, a decline of 86% from the average session volume of 1,952,808 shares. The stock had previously closed at $58.74.

Specifically, SVP Jacob Rudolph sold 1,969 shares of the company’s stock in a transaction that occurred on Monday, November 9th. The shares were sold at an average price of $59.07, for a total transaction of $116,308.83. Following the transaction, the senior vice president directly owned 37,462 shares in the company, valued at approximately $2,212,880.34. This represents a 4.99% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Adam Zambanini sold 500 shares of the stock in a transaction that occurred on Monday, November 9th. The shares were sold at an average price of $55.84, for a total transaction of $27,920.00. Following the sale, the chief executive officer directly owned 235,505 shares in the company, valued at $13,150,599.20. This trade represents a 0.21% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In related news, SVP Amy M. Fernandez sold 1,231 shares of the firm’s stock in a transaction that occurred on Thursday, November 5th. The shares were sold at an average price of $57.87, for a total value of $71,237.97. Following the completion of the sale, the senior vice president owned 66,563 shares of the company’s stock, valued at $3,852,000.81. This trade represents a 1.82% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website.

Analysts Set New Price Targets

TREX has been the subject of several research analyst reports. Bank of America upgraded shares of Trex from an “underperform” rating to a “buy” rating and boosted their price objective for the stock from $46.00 to $65.00 in a research report on Thursday, November 5th. Stifel Nicolaus set a $55.00 target price on Trex and gave the company a “buy” rating in a research note on Monday, October 19th. Melius Research began coverage on Trex in a research note on Tuesday, October 6th. They issued a “buy” rating and a $62.00 target price for the company. DA Davidson downgraded Trex from a “buy” rating to a “neutral” rating and set a $55.00 target price for the company. in a research report on Tuesday. Finally, Barclays upped their price target on Trex from $42.00 to $46.00 and gave the company an “underweight” rating in a research note on Thursday, November 5th. Twelve equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $55.18.

More Trex News

Here are the key news stories impacting Trex this week:

• Positive Sentiment: Trex reported third-quarter sales of about $360 million, up 26% year over year, and EPS of $0.55, beating the $0.48 consensus. However, a $30 million initial distribution load-in contributed to sales, so some of the growth may not reflect recurring demand. Trex: 3 Key Takeaways for Long-Term Investors
• Neutral Sentiment: CEO Adam Zambanini and two senior vice presidents disclosed share sales. The transactions trimmed their holdings by about 0.2% to 5%, while each executive retained a substantial stake. Trex insider trades
• Negative Sentiment: DA Davidson downgraded Trex from “Buy” to “Neutral” and set a $55 price target, below the cited share price of $58.77. The rating change may temper optimism despite the earnings beat. DA Davidson analyst ratings

Trex Stock Down 6.8%

The company’s fifty day moving average is $46.57 and its two-hundred day moving average is $43.50. The firm has a market capitalization of $5.69 billion, a price-to-earnings ratio of 31.90, a price-to-earnings-growth ratio of 3.32 and a beta of 1.46.

Trex (NYSE:TREX) last released its earnings results on Wednesday, November 4th. The construction company reported $0.55 EPS for the quarter, topping analysts’ consensus estimates of $0.48 by $0.07. The firm had revenue of $359.50 million during the quarter, compared to analyst estimates of $314.86 million. Trex had a net margin of 13.89% and a return on equity of 18.27%. The business’s quarterly revenue was up 26.0% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.51 EPS. On average, equities research analysts expect that Trex Company, Inc. will post 1.82 EPS for the current year.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Versant Capital Management Inc acquired a new stake in shares of Trex during the second quarter worth $58,000. Ascentis Independent Advisors acquired a new position in Trex in the first quarter valued at about $44,000. Elevation Wealth Partners LLC boosted its holdings in Trex by 250.7% during the third quarter. Elevation Wealth Partners LLC now owns 1,224 shares of the construction company’s stock worth $53,000 after buying an additional 875 shares during the last quarter. GAMMA Investing LLC boosted its holdings in Trex by 104.7% during the third quarter. GAMMA Investing LLC now owns 1,269 shares of the construction company’s stock worth $55,000 after buying an additional 649 shares during the last quarter. Finally, IFP Advisors Inc boosted its holdings in Trex by 76.0% during the second quarter. IFP Advisors Inc now owns 1,584 shares of the construction company’s stock worth $79,000 after buying an additional 684 shares during the last quarter. 95.96% of the stock is currently owned by institutional investors.

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