Trex (NYSE:TREX) Stock Price Passes Above 200-Day Moving Average – Should You Sell?

Trex Company, Inc. (NYSE:TREX) passed above its two hundred day moving average during trading on Friday . The stock has a two hundred day moving average of $41.57 and traded as high as $44.73. Trex shares last traded at $43.4770, with a volume of 1,960,534 shares trading hands.

Wall Street Analyst Weigh In

A number of research analysts recently weighed in on TREX shares. DA Davidson restated a “buy” rating and issued a $55.00 price objective on shares of Trex in a report on Tuesday, July 14th. UBS Group reiterated a “buy” rating and set a $61.00 target price (up from $59.00) on shares of Trex in a report on Tuesday, July 14th. Bank of America boosted their price target on shares of Trex from $42.00 to $44.00 and gave the stock an “underperform” rating in a research note on Tuesday, July 14th. Deutsche Bank Aktiengesellschaft reaffirmed a “hold” rating and set a $51.00 price objective (up from $41.00) on shares of Trex in a research report on Tuesday, July 14th. Finally, The Goldman Sachs Group reiterated 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. One analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, eight have given a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of $49.00.

Trex Price Performance

The stock’s 50 day moving average is $44.28 and its two-hundred day moving average is $41.57. The stock has a market capitalization of $4.52 billion, a PE ratio of 24.29, a price-to-earnings-growth ratio of 4.91 and a beta of 1.46.

Trex (NYSE:TREX) last issued its quarterly earnings results on Thursday, May 7th. The construction company reported $0.59 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.51 by $0.08. Trex had a net margin of 16.25% and a return on equity of 19.66%. The company had revenue of $343.40 million during the quarter, compared to the consensus estimate of $339.99 million. During the same quarter in the previous year, the firm earned $0.60 earnings per share. The firm’s quarterly revenue was up 1.0% on a year-over-year basis. On average, equities analysts predict that Trex Company, Inc. will post 1.77 earnings per share for the current year.

Insider Activity

In related news, SVP Jacob T. Rudolph sold 1,400 shares of the business’s stock in a transaction 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 completion of the transaction, the senior vice president owned 36,631 shares in the company, valued at approximately $1,831,550. The trade was a 3.68% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 0.93% of the company’s stock.

Institutional Trading of Trex

Hedge funds and other institutional investors have recently bought and sold shares of the business. AQR Capital Management LLC increased its holdings in shares of Trex by 3.2% in the 1st quarter. AQR Capital Management LLC now owns 5,642 shares of the construction company’s stock valued at $320,000 after acquiring an additional 177 shares during the last quarter. Goldman Sachs Group Inc. lifted its stake in Trex by 91.3% during 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 during the last quarter. Hsbc Holdings PLC lifted its stake in Trex by 6.3% during 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 during the last quarter. First Trust Advisors LP boosted its holdings in Trex by 535.1% in the second quarter. First Trust Advisors LP now owns 22,038 shares of the construction company’s stock valued at $1,198,000 after purchasing an additional 18,568 shares in the last quarter. Finally, Jump Financial LLC acquired a new position in Trex in the second quarter valued at approximately $1,055,000. 95.96% of the stock is currently owned by institutional investors and hedge funds.

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.