Zacks Research Upgrades Trex (NYSE:TREX) to Strong-Buy

Trex (NYSE:TREX) was upgraded by equities researchers at Zacks Research from a “hold” rating to a “strong-buy” rating in a note issued to investors on Wednesday,Zacks.com reports.

Other equities analysts also recently issued research reports about the company. DA Davidson reiterated a “buy” rating and set a $55.00 price objective on shares of Trex in a research report on Tuesday. Citigroup restated a “neutral” rating and issued a $52.00 target price (up from $43.00) on shares of Trex in a report on Wednesday. Zelman & Associates raised Trex from a “neutral” rating to an “outperform” rating and set a $50.00 target price for the company in a research note on Monday, May 18th. The Goldman Sachs Group reiterated a “buy” rating and set a $56.00 price target (up from $49.00) on shares of Trex in a report on Friday, July 10th. Finally, UBS Group reissued a “buy” rating and set a $61.00 price target (up from $59.00) on shares of Trex in a research report on Tuesday. One research analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, eight have issued a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat, the company has an average rating of “Hold” and an average price target of $49.00.

Trex Trading Up 4.8%

TREX stock opened at $45.73 on Wednesday. The firm has a 50-day moving average of $43.74 and a two-hundred day moving average of $41.28. Trex has a 12 month low of $29.77 and a 12 month high of $68.78. The company has a market cap of $4.75 billion, a price-to-earnings ratio of 25.55, a PEG ratio of 5.05 and a beta of 1.46.

Trex (NYSE:TREX) last issued its earnings results on Thursday, May 7th. The construction company reported $0.59 earnings per share for the quarter, topping the consensus estimate of $0.51 by $0.08. The business had revenue of $343.40 million for the quarter, compared to analysts’ expectations of $339.99 million. Trex had a return on equity of 19.66% and a net margin of 16.25%.The business’s revenue for the quarter was up 1.0% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.60 EPS. As a group, equities analysts forecast that Trex will post 1.77 earnings per share for the current year.

Insider Buying and Selling

In related news, SVP Jacob T. Rudolph sold 1,400 shares of the company’s stock in a transaction that occurred on Thursday, June 25th. The stock was sold at an average price of $50.00, for a total value of $70,000.00. Following the transaction, the senior vice president directly owned 36,631 shares in the company, valued at approximately $1,831,550. This represents a 3.68% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 0.93% of the company’s stock.

Institutional Investors Weigh In On Trex

Several hedge funds and other institutional investors have recently added to or reduced their stakes in TREX. Handelsbanken Fonder AB raised its position in Trex by 14.7% in the second quarter. Handelsbanken Fonder AB now owns 32,832 shares of the construction company’s stock valued at $1,643,000 after purchasing an additional 4,200 shares during the period. Red Spruce Capital LLC grew its holdings in shares of Trex by 2.3% during the 2nd quarter. Red Spruce Capital LLC now owns 49,410 shares of the construction company’s stock worth $2,472,000 after purchasing an additional 1,101 shares during the period. Byrne Asset Management LLC purchased a new position in shares of Trex during the 2nd quarter worth $152,000. Versant Capital Management Inc acquired a new stake in shares of Trex during the 2nd quarter worth about $58,000. Finally, Parallel Advisors LLC increased its position in shares of Trex by 77.6% during the 1st 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 last quarter. Institutional investors and hedge funds own 95.96% of the company’s stock.

About Trex

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.