Zacks Research Downgrades Trex (NYSE:TREX) to Hold

Trex (NYSE:TREX) was downgraded by research analysts at Zacks Research from a “strong-buy” rating to a “hold” rating in a note issued to investors on Monday, Zacks reports.

TREX has been the subject of a number of other reports. Wall Street Zen upgraded shares of Trex from a “sell” rating to a “hold” rating in a report on Sunday, July 12th. Citigroup restated a “neutral” rating and issued a $52.00 price target (up from $43.00) on shares of Trex in a report on Wednesday, July 15th. UBS Group reaffirmed a “buy” rating and issued a $61.00 price objective (up from $59.00) on shares of Trex in a research report on Tuesday, July 14th. Deutsche Bank Aktiengesellschaft reiterated a “hold” rating and set a $51.00 price objective (up from $41.00) on shares of Trex in a research note on Tuesday, July 14th. Finally, Barclays reissued an “underweight” rating and set a $42.00 target price (up from $36.00) on shares of Trex in a research report on Tuesday, July 14th. Ten analysts have rated the stock with a Buy rating, ten have given a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus price target of $49.30.

Trex Trading Down 0.1%

Shares of NYSE:TREX opened at $43.61 on Monday. Trex has a 12-month low of $29.77 and a 12-month high of $60.28. The business’s fifty day simple moving average is $45.79 and its 200-day simple moving average is $42.67. The company has a market capitalization of $4.53 billion, a PE ratio of 25.96, a P/E/G ratio of 3.01 and a beta of 1.47.

Trex (NYSE:TREX) last released its quarterly earnings results on Tuesday, August 4th. The construction company reported $0.62 EPS for the quarter, missing the consensus estimate of $0.63 by ($0.01). The company had revenue of $418.02 million during the quarter, compared to the consensus estimate of $415.71 million. Trex had a return on equity of 18.03% and a net margin of 14.68%.The company’s revenue was up 7.8% on a year-over-year basis. During the same period in the previous year, the firm posted $0.71 earnings per share. Research analysts predict that Trex will post 1.76 EPS for the current year.

Insider Activity

In other news, SVP Amy M. Fernandez sold 1,050 shares of the company’s stock in a transaction dated 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 owned 67,794 shares in the company, valued at $3,394,445.58. This represents a 1.53% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, SVP Jacob T. Rudolph sold 1,400 shares of the stock in a transaction that occurred on Thursday, June 25th. The shares were sold at an average price of $50.00, for a total transaction of $70,000.00. Following the completion of the transaction, the senior vice president directly owned 36,631 shares of the company’s stock, valued at $1,831,550. The trade was a 3.68% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.93% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of TREX. BlackRock Inc. acquired a new stake in shares of Trex during the second quarter worth $525,081,000. Wellington Management Group LLP grew its holdings in shares of Trex by 18.2% during the second quarter. Wellington Management Group LLP now owns 9,877,116 shares of the construction company’s stock valued at $494,251,000 after buying an additional 1,518,338 shares during the last quarter. Bank of America Corp DE acquired a new position in shares of Trex in the 2nd quarter valued at $94,851,000. Geode Capital Management LLC increased its position in shares of Trex by 1.3% in the 4th quarter. Geode Capital Management LLC now owns 1,913,263 shares of the construction company’s stock valued at $67,132,000 after acquiring an additional 24,892 shares during the period. Finally, Norges Bank purchased a new position in Trex in the 4th quarter worth $62,904,000. Institutional investors and hedge funds own 95.96% of the company’s stock.

About Trex

Trex Company, Inc designs, manufactures and markets wood-alternative composite decking and outdoor living products. Its product portfolio includes decking boards, railing systems, outdoor lighting, deck drainage and related accessories sold under the Trex brand. The company’s composite products are made primarily from recycled materials and are positioned as lower-maintenance alternatives to traditional wood decking.

Trex serves residential and commercial customers through a network of dealers, distributors, retailers, contractors and building professionals.