Stephens Forecasts Strong Price Appreciation for Trex (NYSE:TREX) Stock

Trex (NYSE:TREX) had its price target hoisted by equities researchers at Stephens from $45.00 to $50.00 in a report released on Tuesday,Benzinga reports. The firm currently has an “equal weight” rating on the construction company’s stock. Stephens’ target price would indicate a potential upside of 13.71% from the stock’s previous close.

A number of other brokerages have also issued reports on TREX. Zelman & Associates upgraded Trex from a “neutral” rating to an “outperform” rating and set a $50.00 price target for the company in a report on Monday, May 18th. Deutsche Bank Aktiengesellschaft restated a “hold” rating and set a $51.00 price objective (up from $41.00) on shares of Trex in a report on Tuesday, July 14th. Zacks Research raised Trex from a “hold” rating to a “strong-buy” rating in a research report on Wednesday, July 15th. Barclays reiterated an “underweight” rating and issued a $42.00 target price (up from $36.00) on shares of Trex in a report on Tuesday, July 14th. Finally, Truist Financial increased their price target on Trex from $55.00 to $60.00 and gave the stock a “buy” rating in a research report on Tuesday, July 14th. One investment analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, nine have given a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, Trex currently has an average rating of “Hold” and a consensus target price of $49.05.

Trex Stock Up 1.2%

TREX stock opened at $43.97 on Tuesday. Trex has a twelve month low of $29.77 and a twelve month high of $68.78. The firm has a market cap of $4.57 billion, a price-to-earnings ratio of 24.57, a PEG ratio of 4.99 and a beta of 1.46. The business’s fifty day simple moving average is $44.40 and its two-hundred day simple moving average is $41.65.

Trex (NYSE:TREX) last issued its earnings results on Thursday, May 7th. The construction company reported $0.59 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.51 by $0.08. The firm had revenue of $343.40 million during the quarter, compared to analyst estimates of $339.99 million. Trex had a net margin of 16.25% and a return on equity of 19.66%. The business’s revenue was up 1.0% on a year-over-year basis. During the same period in the previous year, the firm earned $0.60 earnings per share. Research analysts expect that Trex will post 1.78 EPS for the current year.

Insider Activity

In related news, SVP Jacob T. Rudolph sold 1,400 shares of Trex stock in a transaction that occurred on Thursday, June 25th. The shares were sold at an average price of $50.00, for a total transaction of $70,000.00. Following the transaction, the senior vice president directly owned 36,631 shares of the company’s stock, valued at $1,831,550. This trade represents a 3.68% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 0.93% of the company’s stock.

Institutional Trading of Trex

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. AQR Capital Management LLC lifted its stake in shares of Trex by 3.2% during the 1st quarter. AQR Capital Management LLC now owns 5,642 shares of the construction company’s stock worth $320,000 after purchasing an additional 177 shares during the last quarter. Goldman Sachs Group Inc. raised its holdings in Trex by 91.3% in the first 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 in the last quarter. Hsbc Holdings PLC raised its holdings in Trex by 6.3% in the second quarter. Hsbc Holdings PLC now owns 5,403 shares of the construction company’s stock worth $294,000 after purchasing an additional 322 shares in the last quarter. First Trust Advisors LP lifted its position in shares of Trex by 535.1% during the second quarter. First Trust Advisors LP now owns 22,038 shares of the construction company’s stock valued at $1,198,000 after buying an additional 18,568 shares during the last quarter. Finally, Jump Financial LLC purchased a new stake in shares of Trex during the second quarter valued at about $1,055,000. Institutional investors own 95.96% of the company’s stock.

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.