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

Trex Company, Inc. (NYSE:TREX) shares gapped down before the market opened on Wednesday after Truist Financial lowered their price target on the stock from $120.00 to $100.00. The stock had previously closed at $76.56, but opened at $61.04. Truist Financial currently has a buy rating on the stock. Trex shares last traded at $60.51, with a volume of 928,954 shares.

TREX has been the topic of several other reports. Citigroup decreased their price objective on Trex from $94.00 to $80.00 and set a “neutral” rating on the stock in a report on Thursday, July 11th. Benchmark restated a “buy” rating and set a $105.00 price target on shares of Trex in a report on Tuesday, May 14th. Robert W. Baird decreased their price target on Trex from $110.00 to $105.00 and set a “neutral” rating on the stock in a report on Friday, May 10th. Barclays decreased their price target on Trex from $94.00 to $81.00 and set an “underweight” rating on the stock in a report on Friday, July 12th. Finally, Loop Capital lowered Trex from a “buy” rating to a “hold” rating and reduced their target price for the stock from $95.00 to $75.00 in a research note on Wednesday. One analyst has rated the stock with a sell rating, ten have given a hold rating and five have assigned a buy rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of $87.73.

Insider Activity at Trex

In related news, SVP Jacob T. Rudolph sold 16,440 shares of the firm’s stock in a transaction dated Wednesday, May 15th. The stock was sold at an average price of $90.90, for a total transaction of $1,494,396.00. Following the sale, the senior vice president now owns 25,746 shares of the company’s stock, valued at $2,340,311.40. The sale was disclosed in a filing with the SEC, which is available through the SEC website. 0.71% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Trex

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in TREX. Fifth Third Bancorp raised its stake in Trex by 13.2% in the fourth quarter. Fifth Third Bancorp now owns 1,554 shares of the construction company’s stock valued at $129,000 after buying an additional 181 shares during the last quarter. Ballentine Partners LLC purchased a new position in shares of Trex in the fourth quarter worth about $213,000. International Assets Investment Management LLC raised its stake in shares of Trex by 3,743.6% in the fourth quarter. International Assets Investment Management LLC now owns 5,381 shares of the construction company’s stock worth $445,000 after purchasing an additional 5,241 shares during the last quarter. Prime Capital Investment Advisors LLC purchased a new position in shares of Trex in the fourth quarter worth about $323,000. Finally, Nisa Investment Advisors LLC raised its stake in shares of Trex by 9.1% in the fourth quarter. Nisa Investment Advisors LLC now owns 14,443 shares of the construction company’s stock worth $1,196,000 after purchasing an additional 1,200 shares during the last quarter. 95.96% of the stock is currently owned by hedge funds and other institutional investors.

Trex Stock Down 21.0 %

The stock has a market capitalization of $6.58 billion, a PE ratio of 25.97, a PEG ratio of 1.85 and a beta of 1.50. The firm has a 50 day moving average price of $79.82 and a 200-day moving average price of $87.17.

Trex (NYSE:TREX) last announced its quarterly earnings data on Tuesday, August 6th. The construction company reported $0.80 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.78 by $0.02. The firm had revenue of $376.47 million during the quarter, compared to analysts’ expectations of $387.87 million. Trex had a return on equity of 35.33% and a net margin of 20.60%. The company’s revenue for the quarter was up 5.6% compared to the same quarter last year. During the same period last year, the business posted $0.71 earnings per share. Equities analysts expect that Trex Company, Inc. will post 2.26 earnings per share 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.