Lisanti Capital Growth LLC Acquires New Stake in Trex Company, Inc. $TREX

Lisanti Capital Growth LLC bought a new position in Trex Company, Inc. (NYSE:TREX) in the third quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor bought 69,944 shares of the construction company’s stock, valued at approximately $3,614,000. Lisanti Capital Growth LLC owned 0.07% of Trex at the end of the most recent reporting period.

Other hedge funds also recently modified their holdings of the company. Norges Bank bought a new position in Trex during the second quarter valued at about $54,795,000. Federated Hermes Inc. lifted its holdings in Trex by 90.6% in the 3rd quarter. Federated Hermes Inc. now owns 1,469,878 shares of the construction company’s stock valued at $75,949,000 after acquiring an additional 698,628 shares during the last quarter. Bank of America Corp DE boosted its position in shares of Trex by 93.1% during the 2nd quarter. Bank of America Corp DE now owns 1,299,381 shares of the construction company’s stock valued at $70,660,000 after purchasing an additional 626,452 shares in the last quarter. Goldman Sachs Group Inc. grew its stake in shares of Trex by 91.3% in the 1st quarter. Goldman Sachs Group Inc. now owns 822,772 shares of the construction company’s stock worth $47,803,000 after purchasing an additional 392,715 shares during the last quarter. Finally, Vaughan Nelson Investment Management L.P. grew its stake in shares of Trex by 127.0% in the 3rd quarter. Vaughan Nelson Investment Management L.P. now owns 628,708 shares of the construction company’s stock worth $32,485,000 after purchasing an additional 351,765 shares during the last quarter. 95.96% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of analysts recently weighed in on the stock. BMO Capital Markets restated an “outperform” rating and set a $54.00 target price on shares of Trex in a report on Thursday, January 8th. B. Riley reissued a “buy” rating and set a $57.00 price objective (down from $80.00) on shares of Trex in a research note on Wednesday, November 5th. DA Davidson raised Trex from a “neutral” rating to a “buy” rating and boosted their target price for the stock from $45.00 to $50.00 in a research report on Monday, January 12th. Jefferies Financial Group raised Trex from a “hold” rating to a “buy” rating and upped their target price for the company from $39.00 to $42.00 in a report on Monday, December 15th. Finally, Robert W. Baird set a $48.00 price target on Trex in a research note on Monday, January 12th. Ten equities research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and four have assigned a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus target price of $47.25.

Trex Stock Performance

Shares of TREX opened at $41.43 on Friday. The company has a market capitalization of $4.44 billion, a PE ratio of 22.52 and a beta of 1.55. The company’s 50 day moving average price is $37.57 and its 200 day moving average price is $48.44. Trex Company, Inc. has a 52 week low of $29.77 and a 52 week high of $74.68.

Trex (NYSE:TREX) last issued its earnings results on Tuesday, November 4th. The construction company reported $0.51 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.57 by ($0.06). Trex had a net margin of 16.76% and a return on equity of 21.90%. The company had revenue of $285.35 million for the quarter, compared to analyst estimates of $301.74 million. During the same period last year, the business earned $0.37 EPS. The company’s quarterly revenue was up 22.1% on a year-over-year basis. On average, equities analysts forecast that Trex Company, Inc. will post 2.04 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, CFO Prithvi Gandhi purchased 15,000 shares of the business’s stock in a transaction dated Friday, November 14th. The stock was bought at an average cost of $31.92 per share, with a total value of $478,800.00. Following the purchase, the chief financial officer directly owned 30,664 shares of the company’s stock, valued at approximately $978,794.88. This trade represents a 95.76% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. 0.71% of the stock is currently owned by insiders.

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.