Trex (NYSE:TREX) Sets New 1-Year High on Earnings Beat

Trex Company, Inc. (NYSE:TREX) shares reached a new 52-week high during trading on Wednesday following a better than expected earnings announcement. The stock traded as high as $55.56 and last traded at $55.2270, with a volume of 537,410 shares changing hands. The stock had previously closed at $50.00.

The construction company reported $0.55 earnings per share for the quarter, topping the consensus estimate of $0.48 by $0.07. The business had revenue of $359.50 million during the quarter, compared to analyst estimates of $314.86 million. Trex had a return on equity of 18.03% and a net margin of 14.68%. The company’s revenue was up 26.0% compared to the same quarter last year. During the same period last year, the company posted $0.51 EPS.

Analyst Upgrades and Downgrades

TREX has been the topic of several recent analyst reports. UBS Group reissued a “buy” rating and set a $61.00 price target (up from $59.00) on shares of Trex in a research report on Tuesday, July 14th. The Goldman Sachs Group reissued a “buy” rating and issued a $56.00 price objective (up from $49.00) on shares of Trex in a research note on Friday, July 10th. Barclays restated an “underweight” rating and set a $42.00 price objective (up from $36.00) on shares of Trex in a research report on Tuesday, July 14th. Deutsche Bank Aktiengesellschaft raised Trex from a “hold” rating to a “buy” rating and lifted their target price for the company from $53.00 to $57.00 in a research note on Thursday, October 8th. Finally, Zacks Research downgraded Trex from a “strong-buy” rating to a “hold” rating in a report on Monday, September 14th. Thirteen equities research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of “Hold” and an average price target of $50.48.

Insider Buying and Selling

In related news, SVP Amy M. Fernandez sold 1,050 shares of the firm’s stock in a transaction that occurred on Friday, August 7th. The stock was sold at an average price of $50.07, for a total value of $52,573.50. Following the transaction, the senior vice president directly owned 67,794 shares of the company’s stock, valued at approximately $3,394,445.58. This trade represents a 1.53% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. 0.93% of the stock is owned by insiders.

Hedge Funds Weigh In On Trex

Several large investors have recently bought and sold shares of the stock. Junto Capital Management LP acquired a new position in Trex in the 2nd quarter valued at approximately $20,074,000. Corient Private Wealth LP boosted its position in Trex by 433.0% in the 2nd quarter. Corient Private Wealth LP now owns 87,744 shares of the construction company’s stock valued at $4,391,000 after buying an additional 71,282 shares during the last quarter. Legal & General Group Plc acquired a new stake in shares of Trex during the 2nd quarter worth approximately $6,757,000. Public Employees Retirement System of Ohio bought a new stake in Trex in the second quarter valued at about $3,176,000. Finally, The Manufacturers Life Insurance Company acquired a new position in Trex during the second quarter valued at approximately $31,997,000. 95.96% of the stock is currently owned by institutional investors and hedge funds.

Trex Trading Up 9.6%

The company has a 50 day moving average of $45.74 and a 200 day moving average of $43.23. The firm has a market cap of $5.69 billion, a price-to-earnings ratio of 32.62, a P/E/G ratio of 2.93 and a beta of 1.46.

About Trex

Trex Company, Inc is a manufacturer of composite decking and outdoor living products. Its offerings are designed as alternatives to traditional wood and include residential and commercial decking, railing systems, outdoor lighting, and related accessories.

The company’s products are marketed under the Trex brand and include decking lines such as Trex Transcend, Trex Select, and Trex Enhance. Trex composite products are made primarily from recycled wood fibers and recycled polyethylene plastics, supporting the company’s focus on low-maintenance and environmentally oriented outdoor building materials.

Founded in 1996 and headquartered in Winchester, Virginia, Trex serves customers through a network of distributors, dealers, retailers, contractors, and building professionals.