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

Shares of Trex Company, Inc. (NYSE:TREX) traded down 3.4% 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 traded hands during mid-day trading, a decline of 75% from the average session volume of 816,800 shares. The stock had previously closed at $72.59.

Several other research firms have also recently weighed in on TREX. Robert W. Baird decreased their price objective on shares of Trex from $110.00 to $105.00 and set a “neutral” rating on the stock in a research report on Friday, May 10th. Benchmark restated a “buy” rating and issued a $105.00 price objective on shares of Trex in a research report on Tuesday, May 14th. Finally, Barclays upped their price objective on shares of Trex from $93.00 to $94.00 and gave the stock an “underweight” rating in a research report on Friday, May 10th. Two investment analysts have rated the stock with a sell rating, nine have issued a hold rating and eight have assigned a buy rating to the stock. According to data from MarketBeat.com, Trex has an average rating of “Hold” and an average price target of $89.06.

Insider Activity

In related news, SVP Jacob T. Rudolph sold 16,440 shares of the firm’s stock in a transaction 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 completion of the sale, the senior vice president now owns 25,746 shares of the company’s stock, valued at $2,340,311.40. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 0.71% of the company’s stock.

Institutional Trading of Trex

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Vanguard Group Inc. lifted its position in Trex by 0.6% during the first quarter. Vanguard Group Inc. now owns 10,314,078 shares of the construction company’s stock valued at $1,028,829,000 after buying an additional 65,428 shares during the period. Artisan Partners Limited Partnership increased its holdings in shares of Trex by 19.2% during 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 acquiring an additional 660,536 shares in the last quarter. Conestoga Capital Advisors LLC increased its holdings in shares of Trex by 1.4% during the first quarter. Conestoga Capital Advisors LLC now owns 1,913,263 shares of the construction company’s stock valued at $190,848,000 after acquiring an additional 27,135 shares in the last quarter. TD Asset Management Inc increased its holdings in shares of Trex by 516.8% during the fourth quarter. TD Asset Management Inc now owns 1,600,980 shares of the construction company’s stock valued at $132,545,000 after acquiring an additional 1,341,419 shares in the last quarter. Finally, Norges Bank bought a new position in shares of Trex during the fourth quarter valued at $113,613,000. Hedge funds and other institutional investors own 95.96% of the company’s stock.

Trex Stock Down 2.2 %

The firm has a fifty day moving average price of $84.83 and a two-hundred day moving average price of $87.51. The stock has a market capitalization of $7.71 billion, a P/E ratio of 30.45, a P/E/G ratio of 1.63 and a beta of 1.50.

Trex (NYSE:TREX) last issued its quarterly earnings results on Thursday, May 9th. The construction company reported $0.82 earnings per share for the quarter, beating the consensus estimate of $0.72 by $0.10. Trex had a return on equity of 35.33% and a net margin of 20.60%. The firm had revenue of $373.64 million during the quarter, compared to the consensus estimate of $367.31 million. During the same period last year, the company earned $0.38 earnings per share. The company’s revenue was up 56.5% on a year-over-year basis. Sell-side 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.