Trex (NYSE:TREX) Upgraded by DA Davidson to Buy Rating

Trex (NYSE:TREX) was upgraded by analysts at DA Davidson from a “neutral” rating to a “buy” rating in a report released on Monday. The brokerage presently has a $50.00 price objective on the construction company’s stock. DA Davidson’s price target suggests a potential upside of 19.94% from the stock’s current price.

TREX has been the subject of several other reports. Bank of America reaffirmed an “underperform” rating and issued a $36.00 target price (down from $67.00) on shares of Trex in a research note on Wednesday, November 5th. Deutsche Bank Aktiengesellschaft downgraded Trex from a “buy” rating to a “hold” rating and set a $40.00 price objective for the company. in a research report on Wednesday, November 5th. Benchmark reduced their target price on Trex from $80.00 to $40.00 and set a “buy” rating on the stock in a research report on Wednesday, November 5th. Wolfe Research raised Trex from a “peer perform” rating to an “outperform” rating and set a $47.00 price target on the stock in a research note on Wednesday. Finally, Wall Street Zen cut Trex from a “hold” rating to a “sell” rating in a report on Saturday. One equities research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating, nine have assigned a Hold rating and four have assigned a Sell rating to the company. Based on data from MarketBeat.com, Trex currently has a consensus rating of “Hold” and an average target price of $48.60.

Trex Stock Up 8.2%

TREX opened at $41.69 on Monday. The firm has a market cap of $4.47 billion, a P/E ratio of 22.66 and a beta of 1.55. The business’s fifty day simple moving average is $34.96 and its 200 day simple moving average is $50.01. Trex has a 52 week low of $29.77 and a 52 week high of $75.55.

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

Insider Activity at Trex

In other Trex news, CFO Prithvi Gandhi bought 15,000 shares of Trex stock in a transaction that occurred on Friday, November 14th. The shares were acquired at an average price of $31.92 per share, for a total transaction of $478,800.00. Following the acquisition, the chief financial officer owned 30,664 shares of the company’s stock, valued at $978,794.88. The trade was a 95.76% increase in their position. The acquisition was disclosed in a filing with the SEC, which can be accessed through this link. Corporate insiders own 0.74% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. AQR Capital Management LLC grew its stake in Trex by 3.2% during the 1st quarter. AQR Capital Management LLC now owns 5,642 shares of the construction company’s stock valued at $320,000 after purchasing an additional 177 shares in the last quarter. Goldman Sachs Group Inc. boosted its stake in shares of Trex by 91.3% during the 1st quarter. Goldman Sachs Group Inc. now owns 822,772 shares of the construction company’s stock valued at $47,803,000 after buying an additional 392,715 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in shares of Trex by 107.8% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 777,189 shares of the construction company’s stock worth $45,155,000 after buying an additional 403,203 shares during the last quarter. Voya Investment Management LLC raised its holdings in Trex by 24.0% in the first quarter. Voya Investment Management LLC now owns 395,913 shares of the construction company’s stock valued at $23,003,000 after acquiring an additional 76,562 shares in the last quarter. Finally, Parallel Advisors LLC boosted its stake in Trex by 28.4% during the 2nd quarter. Parallel Advisors LLC now owns 1,049 shares of the construction company’s stock valued at $57,000 after acquiring an additional 232 shares during the last quarter. 95.96% of the stock is owned by hedge funds and other institutional investors.

Trex Company Profile

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.