Trex (NYSE:TREX) Shares Gap Up Following Strong Earnings

Shares of Trex Company, Inc. (NYSE:TREX) gapped up before the market opened on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $41.45, but opened at $44.63. Trex shares last traded at $43.3460, with a volume of 866,514 shares changing hands.

The construction company reported $0.04 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.01) by $0.05. Trex had a return on equity of 20.57% and a net margin of 16.22%.The business had revenue of $161.13 million during the quarter, compared to analyst estimates of $144.39 million. During the same period last year, the company earned $0.09 earnings per share. Trex’s quarterly revenue was down 3.9% compared to the same quarter last year.

Trex News Roundup

Here are the key news stories impacting Trex this week:

• Positive Sentiment: Q4 earnings beat and stronger-than-expected revenue — Trex reported Q4 EPS of $0.04 vs. a consensus loss of $0.01 and revenue of $161.13M vs. $144.39M expected, signaling demand resilience and margin improvement. MarketBeat Q4 Earnings
• Positive Sentiment: CEO succession announced with smooth transition — Trex named EVP/COO Adam D. Zambanini as incoming CEO on April 28; the market reaction indicates investors view the succession as orderly and confidence-preserving. BusinessWire CEO Succession
• Positive Sentiment: Analyst upgrades and higher price targets — Loop Capital upgraded TREX to Buy and raised its target to $53; UBS also raised its target to $58 (buy), boosting upside expectations. Loop Capital Upgrade UBS Note
• Neutral Sentiment: 2026 sales target set — Management outlined a 2026 revenue target of $1.185B–$1.23B and reiterated cautious optimism for the year; guidance is constructive but conservative. Seeking Alpha Guidance
• Neutral Sentiment: Market commentary highlights product innovation and seasonal dynamics — Analysts note new product launches (e.g., fire-resistant decking), improved retail placements, and one-time startup costs that pressured prior margins but could drive 2026 ROI. MarketBeat Analysis
• Negative Sentiment: Large institutional selling — Wasatch Advisors sold ~1.56M shares (~$63M), reflecting material portfolio repositioning that weighs on supply/demand and could pressure the stock. Fool: Wasatch Sale
• Negative Sentiment: Additional fund-level share reduction — A separate filing shows a fund sold ~107,000 TREX shares (~$4.3M), adding to near-term selling pressure. Fool: Fund Sells
• Negative Sentiment: Mixed analyst signals — Barclays raised its target to $39 but kept an Underweight rating, signaling some firms remain cautious on demand recovery. Benzinga: Barclays Note

Wall Street Analyst Weigh In

TREX has been the topic of a number of research reports. Deutsche Bank Aktiengesellschaft downgraded Trex from a “buy” rating to a “hold” rating and set a $40.00 price objective on the stock. in a report on Wednesday, November 5th. Wolfe Research raised shares of Trex from a “peer perform” rating to an “outperform” rating and set a $47.00 target price for the company in a research report on Wednesday, January 7th. Loop Capital upgraded shares of Trex from a “hold” rating to a “buy” rating and raised their price target for the company from $45.00 to $53.00 in a report on Wednesday. Citigroup reduced their price objective on shares of Trex from $52.00 to $39.00 and set a “neutral” rating for the company in a research note on Monday, December 15th. Finally, JPMorgan Chase & Co. lowered their target price on shares of Trex from $71.00 to $40.00 and set a “neutral” rating on the stock in a research report on Thursday, November 6th. Ten equities research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and three have given a Sell rating to the company. According to MarketBeat.com, Trex has an average rating of “Hold” and a consensus target price of $47.38.

Hedge Funds Weigh In On Trex

Institutional investors have recently made changes to their positions in the business. Wellington Management Group LLP boosted its position in shares of Trex by 266.0% in the fourth quarter. Wellington Management Group LLP now owns 7,225,393 shares of the construction company’s stock valued at $253,467,000 after acquiring an additional 5,251,297 shares during the period. AQR Capital Management LLC increased its position in Trex by 143.8% during the fourth quarter. AQR Capital Management LLC now owns 3,895,534 shares of the construction company’s stock worth $136,655,000 after acquiring an additional 2,297,533 shares during the period. Norges Bank acquired a new position in Trex during the 4th quarter valued at $62,904,000. Freestone Grove Partners LP bought a new stake in Trex in the 4th quarter valued at $53,951,000. Finally, Impax Asset Management Group plc grew its position in Trex by 93.0% in the 3rd quarter. Impax Asset Management Group plc now owns 1,934,581 shares of the construction company’s stock worth $99,354,000 after purchasing an additional 932,247 shares during the last quarter. 95.96% of the stock is currently owned by institutional investors.

Trex Stock Performance

The firm’s 50-day simple moving average is $40.43 and its 200-day simple moving average is $45.61. The company has a market capitalization of $4.48 billion, a price-to-earnings ratio of 23.58 and a beta of 1.58.

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.