Trex (NYSE:TREX) Shares Gap Down on Analyst Downgrade

Trex Company, Inc. (NYSE:TREX)’s share price gapped down prior to trading on Friday after Robert W. Baird lowered their price target on the stock from $110.00 to $105.00. The stock had previously closed at $93.41, but opened at $87.06. Robert W. Baird currently has a neutral rating on the stock. Trex shares last traded at $89.58, with a volume of 390,265 shares trading hands.

TREX has been the subject of a number of other research reports. Barclays lifted their price objective on shares of Trex from $86.00 to $93.00 and gave the company an “underweight” rating in a report on Thursday, April 4th. JPMorgan Chase & Co. lifted their price objective on shares of Trex from $79.00 to $93.00 and gave the company a “neutral” rating in a report on Friday, March 1st. DA Davidson boosted their price target on shares of Trex from $80.00 to $87.00 and gave the stock a “neutral” rating in a report on Tuesday, February 27th. The Goldman Sachs Group upped their price target on shares of Trex from $89.00 to $108.00 and gave the company a “buy” rating in a research report on Wednesday, February 28th. Finally, Benchmark upped their price objective on shares of Trex from $85.00 to $105.00 and gave the stock a “buy” rating in a research report on Friday, March 1st. Two equities research analysts have rated the stock with a sell rating, nine have given a hold rating and eight have issued a buy rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $89.41.

Institutional Trading of Trex

Several institutional investors have recently added to or reduced their stakes in TREX. V Square Quantitative Management LLC acquired a new stake in Trex in the 4th quarter valued at about $25,000. Mather Group LLC. bought a new stake in shares of Trex in the first quarter valued at approximately $26,000. Loomis Sayles & Co. L P bought a new position in Trex in the third quarter worth $27,000. Contravisory Investment Management Inc. acquired a new position in Trex during the fourth quarter worth $28,000. Finally, Headinvest LLC acquired a new position in Trex during the third quarter worth $29,000. Institutional investors own 95.96% of the company’s stock.

Trex Price Performance

The company has a market capitalization of $9.63 billion, a price-to-earnings ratio of 46.65, a price-to-earnings-growth ratio of 2.06 and a beta of 1.60. The stock has a 50 day moving average price of $93.81 and a two-hundred day moving average price of $82.69.

Trex (NYSE:TREX) last issued its earnings results on Thursday, May 9th. The construction company reported $0.82 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.72 by $0.10. Trex had a return on equity of 31.26% and a net margin of 18.76%. The firm had revenue of $373.64 million for the quarter, compared to analysts’ expectations of $367.31 million. During the same quarter last year, the business earned $0.38 earnings per share. The company’s revenue was up 56.5% compared to the same quarter last year. Sell-side analysts forecast that Trex Company, Inc. will post 2.22 EPS for the current fiscal year.

About Trex

Trex Company, Inc manufactures and distributes composite decking, railing, and outdoor living products and accessories for residential and commercial markets in the United States. It offers decking products and accessories under the names Trex Transcend, Trex Select, Trex Signature, Trex Transcend Lineage, and Trex Enhance for protection against fading, staining, mold, and scratching; Trex Hideaway, a hidden fastening system; and Trex DeckLighting, a LED dimmable deck lighting for use on posts, floors, and steps.