Trex (NYSE:TREX) Cut to Neutral at DA Davidson

DA Davidson cut shares of Trex (NYSE:TREX) from a buy rating to a neutral rating in a research note released on Tuesday morning, MarketBeat Ratings reports. They currently have $55.00 price target on the construction company’s stock.

TREX has been the subject of a number of other research reports. Truist Financial raised their target price on shares of Trex from $60.00 to $75.00 and gave the company a “buy” rating in a research report on Thursday, November 5th. BMO Capital Markets set a $57.00 price target on shares of Trex in a research note on Wednesday, August 5th. Citigroup boosted their price target on shares of Trex from $52.00 to $59.00 and gave the stock a “neutral” rating in a research report on Thursday, November 5th. Barclays boosted their price target on shares of Trex from $42.00 to $46.00 and gave the stock an “underweight” rating in a research report on Thursday, November 5th. Finally, Zacks Research downgraded shares of Trex from a “strong-buy” rating to a “hold” rating in a research note on Monday, September 14th. Twelve research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, Trex currently has a consensus rating of “Moderate Buy” and a consensus price target of $55.18.

Trex Stock Performance

NYSE:TREX opened at $52.75 on Tuesday. The stock has a 50-day simple moving average of $47.15 and a 200 day simple moving average of $43.67. Trex has a 52-week low of $29.77 and a 52-week high of $60.21. The company has a market cap of $5.27 billion, a PE ratio of 30.16, a PEG ratio of 2.89 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, beating the consensus estimate of $0.48 by $0.07. Trex had a return on equity of 18.27% and a net margin of 13.89%. The firm had revenue of $359.50 million for the quarter, compared to analysts’ expectations of $314.86 million. During the same quarter in the previous year, the business posted $0.51 EPS. The business’s quarterly revenue was up 26.0% compared to the same quarter last year. On average, research analysts predict that Trex will post 1.86 earnings per share for the current fiscal year.

Insider Buying and Selling at Trex

In other news, SVP Amy M. Fernandez sold 1,231 shares of Trex stock in a transaction that occurred on Thursday, November 5th. The stock was sold at an average price of $57.87, for a total transaction of $71,237.97. Following the completion of the transaction, the senior vice president directly owned 66,563 shares in the company, valued at approximately $3,852,000.81. The trade was a 1.82% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Adam Zambanini sold 500 shares of Trex stock in a transaction that occurred on Monday, November 9th. The stock was sold at an average price of $55.84, for a total value of $27,920.00. Following the transaction, the chief executive officer owned 235,505 shares of the company’s stock, valued at $13,150,599.20. This represents a 0.21% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 3,700 shares of company stock worth $215,467 over the last 90 days. Company insiders own 0.93% of the company’s stock.

Institutional Investors Weigh In On Trex

Several hedge funds have recently added to or reduced their stakes in TREX. BlackRock Inc. bought a new position in Trex during the second quarter worth $525,081,000. Wellington Management Group LLP raised its position in shares of Trex by 18.2% in 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 purchasing an additional 1,518,338 shares during the period. Bank of America Corp DE bought a new position in shares of Trex in the second quarter valued at about $94,851,000. Royce & Associates LP raised its position in shares of Trex by 45.6% in the third quarter. Royce & Associates LP now owns 1,078,705 shares of the construction company’s stock valued at $46,988,000 after purchasing an additional 337,592 shares during the period. Finally, Fort Washington Investment Advisors Inc. OH acquired a new stake in shares of Trex during the 3rd quarter worth about $32,858,000. Institutional investors and hedge funds own 95.96% of the company’s stock.

Trex Company Profile

Trex Company, Inc. manufactures wood-alternative decking, railing and other outdoor-living products. Its composite decking is made primarily from reclaimed wood and recycled plastic, offering an alternative to traditional wood materials. The company’s products include composite deck boards and railing systems, along with accessories such as outdoor lighting and drainage products. Trex sells through a network of distributors, dealers and retailers, serving customers primarily in North America as well as international markets.