Zacks Investment Research lowered shares of Trex (NYSE:TREX) from a buy rating to a hold rating in a research note issued to investors on Thursday morning, Zacks.com reports.
According to Zacks, “Trex Company, Inc. is a manufacturer of wood-alternative decking and railing. Trex Company, Inc. is based in Winchester, United States. “
A number of other brokerages also recently issued reports on TREX. Deutsche Bank initiated coverage on shares of Trex in a research report on Wednesday, November 27th. They issued a hold rating for the company. ValuEngine cut shares of Trex from a sell rating to a strong sell rating in a research report on Wednesday, October 2nd. DA Davidson reissued a positive rating and set a $102.00 target price on shares of Trex in a research report on Tuesday, October 29th. BNP Paribas started coverage on Trex in a research note on Wednesday, October 9th. They issued an underperform rating on the stock. Finally, William Blair assumed coverage on Trex in a report on Thursday, August 22nd. They issued an outperform rating for the company. Three analysts have rated the stock with a sell rating, seven have assigned a hold rating and four have issued a buy rating to the company’s stock. The stock currently has an average rating of Hold and an average price target of $85.80.
Shares of NYSE:TREX traded up $1.05 during mid-day trading on Thursday, hitting $86.79. 402,016 shares of the company traded hands, compared to its average volume of 741,806. Trex has a 12-month low of $53.48 and a 12-month high of $93.63. The company has a current ratio of 3.52, a quick ratio of 3.02 and a debt-to-equity ratio of 0.08. The stock has a market cap of $5.02 billion, a P/E ratio of 36.93, a P/E/G ratio of 3.57 and a beta of 1.90. The stock has a 50-day moving average price of $87.88 and a two-hundred day moving average price of $80.11.
Trex (NYSE:TREX) last announced its earnings results on Monday, October 28th. The construction company reported $0.72 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.68 by $0.04. Trex had a net margin of 18.65% and a return on equity of 35.80%. The company had revenue of $195.00 million during the quarter, compared to the consensus estimate of $208.12 million. During the same quarter in the prior year, the company posted $0.57 earnings per share. The firm’s revenue for the quarter was up 17.2% on a year-over-year basis. As a group, analysts expect that Trex will post 2.41 earnings per share for the current year.
In related news, CFO Bryan Horix Fairbanks sold 11,435 shares of Trex stock in a transaction that occurred on Wednesday, October 30th. The shares were sold at an average price of $83.92, for a total value of $959,625.20. Following the sale, the chief financial officer now owns 46,318 shares of the company’s stock, valued at approximately $3,887,006.56. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Adam Dante Zambanini sold 4,344 shares of Trex stock in a transaction that occurred on Thursday, October 31st. The stock was sold at an average price of $84.20, for a total transaction of $365,764.80. Following the completion of the sale, the insider now directly owns 88,229 shares in the company, valued at approximately $7,428,881.80. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 18,571 shares of company stock valued at $1,558,410. 0.93% of the stock is owned by company insiders.
A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Amundi Pioneer Asset Management Inc. increased its stake in shares of Trex by 50.5% in the first quarter. Amundi Pioneer Asset Management Inc. now owns 337,153 shares of the construction company’s stock worth $20,742,000 after purchasing an additional 113,161 shares in the last quarter. Steward Partners Investment Advisory LLC bought a new position in Trex in the 2nd quarter worth approximately $397,000. Los Angeles Capital Management & Equity Research Inc. boosted its holdings in Trex by 27.8% in the 2nd quarter. Los Angeles Capital Management & Equity Research Inc. now owns 35,988 shares of the construction company’s stock worth $2,580,000 after buying an additional 7,832 shares during the period. AGF Investments Inc. grew its stake in Trex by 1.9% in the 2nd quarter. AGF Investments Inc. now owns 55,665 shares of the construction company’s stock valued at $3,991,000 after buying an additional 1,062 shares in the last quarter. Finally, Advisor Group Inc. grew its stake in Trex by 31.6% in the 2nd quarter. Advisor Group Inc. now owns 1,009 shares of the construction company’s stock valued at $72,000 after buying an additional 242 shares in the last quarter. 96.87% of the stock is owned by institutional investors and hedge funds.
About Trex
Trex Co, Inc engages in the manufacture of wood-alternative decking and railing. Its products include deck framing and drainage, outdoor lighting, furniture, pergola and outdoor kitchens, fencing, collections, and accessory hardware. It operates through the following segments Trex Residential Products and Trex Commercial Products.
Further Reading: Return on Equity (ROE)
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