Trex Co. (TREX) Downgraded by Zacks Investment Research to “Hold”
According to Zacks, “Trex Company, Inc. is a manufacturer of non-wood decking alternative products, which are marketed under the brand name Trex. Trex Wood-Polymer(TM) lumber is a wood/plastic composite that offers an attractive appearance and the workability of wood without wood’s on-going maintenance requirements and functional disadvantages. Trex is manufactured in a proprietary process that combines waste wood fibers and reclaimed polyethylene and is used primarily for residential and commercial decking. They promote Trex among consumers and contractors as a premium decking product. “
Several other brokerages also recently weighed in on TREX. Wedbush downgraded Trex from an outperform rating to a neutral rating and boosted their target price for the stock from $50.00 to $53.00 in a research note on Wednesday, August 3rd. They noted that the move was a valuation call. FBR & Co boosted their target price on Trex from $50.00 to $60.00 and gave the stock an outperform rating in a research note on Tuesday, August 2nd. Finally, CL King downgraded Trex from a buy rating to a neutral rating in a research note on Wednesday, August 3rd. They noted that the move was a valuation call. Five investment analysts have rated the stock with a hold rating and two have given a buy rating to the company’s stock. The company has a consensus rating of Hold and an average target price of $59.33.
Trex (NYSE:TREX) traded down 1.34% during midday trading on Thursday, hitting $59.70. The stock had a trading volume of 36,725 shares. Trex has a 52-week low of $31.11 and a 52-week high of $64.36. The company’s 50 day moving average price is $59.73 and its 200-day moving average price is $50.50. The stock has a market cap of $1.75 billion, a PE ratio of 31.13 and a beta of 2.02.
Trex (NYSE:TREX) last announced its earnings results on Monday, August 1st. The company reported $0.79 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.71 by $0.08. Trex had a return on equity of 61.76% and a net margin of 12.68%. The firm had revenue of $146.45 million for the quarter, compared to the consensus estimate of $145.19 million. During the same period in the previous year, the business earned $0.58 EPS. The firm’s revenue for the quarter was up 7.1% on a year-over-year basis. Analysts forecast that Trex will post $2.31 EPS for the current fiscal year.
In other Trex news, insider James E. Cline sold 6,873 shares of the stock in a transaction that occurred on Wednesday, August 3rd. The stock was sold at an average price of $55.49, for a total transaction of $381,382.77. Following the completion of the transaction, the insider now owns 100,543 shares of the company’s stock, valued at $5,579,131.07. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP Adam Dante Zambanini sold 5,730 shares of the stock in a transaction that occurred on Wednesday, September 7th. The shares were sold at an average price of $61.61, for a total value of $353,025.30. Following the transaction, the vice president now directly owns 34,396 shares of the company’s stock, valued at approximately $2,119,137.56. The disclosure for this sale can be found here. 1.40% of the stock is owned by corporate insiders.
Institutional investors have recently made changes to their positions in the stock. Victory Capital Management Inc. boosted its position in shares of Trex by 34.3% in the second quarter. Victory Capital Management Inc. now owns 2,462 shares of the company’s stock worth $111,000 after buying an additional 629 shares during the last quarter. BlackRock Inc. boosted its position in shares of Trex by 152.8% in the first quarter. BlackRock Inc. now owns 2,690 shares of the company’s stock worth $129,000 after buying an additional 1,626 shares during the last quarter. Nisa Investment Advisors LLC boosted its position in shares of Trex by 500.0% in the second quarter. Nisa Investment Advisors LLC now owns 3,000 shares of the company’s stock worth $135,000 after buying an additional 2,500 shares during the last quarter. M&R Capital Management Inc. purchased a new position in shares of Trex during the second quarter worth approximately $134,000. Finally, Amalgamated Bank purchased a new position in shares of Trex during the second quarter worth approximately $205,000. 97.35% of the stock is owned by institutional investors and hedge funds.
Trex Company Profile
Trex Company, Inc is a manufacturer of wood-alternative decking and railing products. The Company markets its products under the brand name Trex. The Company offers a set of outdoor living products in the decking, railing, porch, fencing, trim, steel deck framing and outdoor lighting categories. Its decking products include Trex Transcend, Trex Enhance and Trex Select.
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