Trex (NYSE:TREX) Shares Down 3.4% on Analyst Downgrade

Trex Company, Inc. (NYSE:TREX)’s share price fell 3.4% during trading on Wednesday after DA Davidson lowered their price target on the stock from $89.00 to $80.00. DA Davidson currently has a neutral rating on the stock. Trex traded as low as $69.99 and last traded at $70.12. 200,705 shares were traded during trading, a decline of 75% from the average session volume of 816,800 shares. The stock had previously closed at $72.59.

Several other analysts have also commented on the company. Robert W. Baird dropped their target price on Trex from $110.00 to $105.00 and set a “neutral” rating on the stock in a report on Friday, May 10th. Barclays raised their target price on Trex from $93.00 to $94.00 and gave the stock an “underweight” rating in a report on Friday, May 10th. Finally, Benchmark reaffirmed a “buy” rating and set a $105.00 target price on shares of Trex in a report on Tuesday, May 14th. Two investment analysts have rated the stock with a sell rating, nine have assigned a hold rating and eight have given a buy rating to the company’s stock. According to data from MarketBeat.com, Trex currently has an average rating of “Hold” and a consensus price target of $89.06.

Insider Activity

In other news, SVP Jacob T. Rudolph sold 16,440 shares of the firm’s stock in a transaction that occurred on Wednesday, May 15th. The stock was sold at an average price of $90.90, for a total value of $1,494,396.00. Following the transaction, the senior vice president now owns 25,746 shares in the company, valued at $2,340,311.40. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Company insiders own 0.71% of the company’s stock.

Hedge Funds Weigh In On Trex

Institutional investors have recently added to or reduced their stakes in the stock. Norges Bank acquired a new position in Trex during the fourth quarter worth $113,613,000. TD Asset Management Inc boosted its stake in Trex by 516.8% during the fourth quarter. TD Asset Management Inc now owns 1,600,980 shares of the construction company’s stock worth $132,545,000 after buying an additional 1,341,419 shares during the last quarter. Epoch Investment Partners Inc. raised its position in Trex by 250.4% in the fourth quarter. Epoch Investment Partners Inc. now owns 938,544 shares of the construction company’s stock valued at $77,702,000 after purchasing an additional 670,665 shares during the period. Artisan Partners Limited Partnership raised its position in Trex by 19.2% in the fourth quarter. Artisan Partners Limited Partnership now owns 4,102,402 shares of the construction company’s stock valued at $339,638,000 after purchasing an additional 660,536 shares during the period. Finally, Motley Fool Asset Management LLC raised its position in Trex by 287.5% in the first quarter. Motley Fool Asset Management LLC now owns 324,808 shares of the construction company’s stock valued at $32,400,000 after purchasing an additional 240,989 shares during the period. Hedge funds and other institutional investors own 95.96% of the company’s stock.

Trex Stock Down 2.2 %

The company has a market cap of $7.71 billion, a PE ratio of 30.45, a P/E/G ratio of 1.63 and a beta of 1.50. The stock has a 50-day simple moving average of $84.83 and a 200 day simple moving average of $87.51.

Trex (NYSE:TREX) last posted its earnings results on Thursday, May 9th. The construction company reported $0.82 EPS for the quarter, beating analysts’ consensus estimates of $0.72 by $0.10. Trex had a return on equity of 35.33% and a net margin of 20.60%. The company had revenue of $373.64 million for the quarter, compared to the consensus estimate of $367.31 million. During the same quarter in the previous year, the business earned $0.38 earnings per share. The company’s revenue for the quarter was up 56.5% on a year-over-year basis. As a group, research analysts anticipate that Trex Company, Inc. will post 2.26 earnings per share for the current fiscal year.

About Trex

Trex Company, Inc manufactures and distributes composite decking, railing, and outdoor living products and accessories for residential and commercial markets in the United States. It offers decking products and accessories under the names Trex Transcend, Trex Select, Trex Signature, Trex Transcend Lineage, and Trex Enhance for protection against fading, staining, mold, and scratching; Trex Hideaway, a hidden fastening system; and Trex DeckLighting, a LED dimmable deck lighting for use on posts, floors, and steps.