Trex (NYSE:TREX) Cut to “Strong Sell” at Zacks Research

Zacks Research lowered shares of Trex (NYSE:TREX) from a hold rating to a strong sell rating in a research note issued to investors on Monday,Zacks.com reports.

Other analysts have also recently issued reports about the stock. Wall Street Zen upgraded shares of Trex from a “sell” rating to a “hold” rating in a research note on Saturday, August 9th. UBS Group restated a “neutral” rating and set a $74.00 price objective (up from $72.00) on shares of Trex in a research note on Tuesday, August 5th. JPMorgan Chase & Co. decreased their price objective on shares of Trex from $73.00 to $71.00 and set a “neutral” rating for the company in a research note on Wednesday, August 6th. B. Riley upgraded shares of Trex to a “strong-buy” rating in a research note on Monday, July 21st. Finally, Weiss Ratings restated a “hold (c-)” rating on shares of Trex in a research note on Wednesday, October 8th. Two analysts have rated the stock with a Strong Buy rating, eight have given a Buy rating, eight have assigned a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, Trex currently has an average rating of “Moderate Buy” and an average target price of $71.00.

Trex Stock Down 1.2%

TREX stock opened at $52.52 on Monday. The firm has a 50 day moving average of $57.86 and a 200 day moving average of $58.20. The stock has a market capitalization of $5.63 billion, a PE ratio of 30.36, a price-to-earnings-growth ratio of 2.21 and a beta of 1.49. Trex has a 52 week low of $49.01 and a 52 week high of $80.74.

Trex (NYSE:TREX) last released its earnings results on Monday, August 4th. The construction company reported $0.74 EPS for the quarter, topping analysts’ consensus estimates of $0.72 by $0.02. The company had revenue of $387.80 million during the quarter, compared to analysts’ expectations of $377.49 million. Trex had a net margin of 16.53% and a return on equity of 21.27%. Trex’s revenue for the quarter was up 3.0% on a year-over-year basis. During the same period last year, the business earned $0.80 EPS. Trex has set its Q3 2025 guidance at EPS. On average, equities research analysts expect that Trex will post 2.04 earnings per share for the current year.

Insider Activity

In related news, SVP Amy M. Fernandez sold 1,538 shares of the business’s stock in a transaction on Wednesday, August 6th. The shares were sold at an average price of $64.18, for a total value of $98,708.84. Following the completion of the transaction, the senior vice president directly owned 22,953 shares in the company, valued at $1,473,123.54. The trade was a 6.28% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. 0.71% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Trex

Large investors have recently made changes to their positions in the company. Price T Rowe Associates Inc. MD increased its holdings in Trex by 132.8% in the 1st quarter. Price T Rowe Associates Inc. MD now owns 7,297,863 shares of the construction company’s stock worth $424,007,000 after acquiring an additional 4,163,014 shares in the last quarter. American Century Companies Inc. increased its holdings in Trex by 8.4% in the 2nd quarter. American Century Companies Inc. now owns 2,137,918 shares of the construction company’s stock worth $116,260,000 after acquiring an additional 165,793 shares in the last quarter. Madison Asset Management LLC purchased a new stake in Trex in the 1st quarter worth $109,852,000. Geneva Capital Management LLC increased its holdings in Trex by 7.6% in the 2nd quarter. Geneva Capital Management LLC now owns 1,722,606 shares of the construction company’s stock worth $93,675,000 after acquiring an additional 121,722 shares in the last quarter. Finally, Bank of America Corp DE increased its holdings in Trex by 93.1% in the 2nd quarter. Bank of America Corp DE now owns 1,299,381 shares of the construction company’s stock worth $70,660,000 after acquiring an additional 626,452 shares in the last quarter. 95.96% of the stock is currently owned by institutional investors and hedge funds.

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.