Trex (NYSE:TREX) Shares Gap Up on Better-Than-Expected Earnings

Trex Company, Inc. (NYSE:TREX)’s share price gapped up prior to trading on Tuesday after the company announced better than expected quarterly earnings. The stock had previously closed at $66.51, but opened at $70.00. Trex shares last traded at $66.63, with a volume of 538,724 shares trading hands.

The construction company reported $0.37 EPS for the quarter, topping the consensus estimate of $0.32 by $0.05. The firm had revenue of $233.72 million for the quarter, compared to analysts’ expectations of $225.42 million. Trex had a return on equity of 33.53% and a net margin of 21.07%. The firm’s quarterly revenue was down 23.1% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.57 earnings per share.

Analyst Upgrades and Downgrades

TREX has been the topic of a number of research analyst reports. Truist Financial lowered their target price on Trex from $120.00 to $100.00 and set a “buy” rating on the stock in a report on Wednesday, August 7th. JPMorgan Chase & Co. lowered their price objective on shares of Trex from $95.00 to $69.00 and set a “neutral” rating on the stock in a research note on Monday, August 12th. DA Davidson boosted their target price on shares of Trex from $70.00 to $74.00 and gave the stock a “neutral” rating in a report on Tuesday. Loop Capital cut shares of Trex from a “buy” rating to a “hold” rating and reduced their target price for the stock from $95.00 to $75.00 in a report on Wednesday, August 7th. Finally, StockNews.com cut Trex from a “hold” rating to a “sell” rating in a report on Tuesday. Two investment analysts have rated the stock with a sell rating, ten have issued a hold rating and six have issued a buy rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $79.94.

Institutional Trading of Trex

A number of hedge funds have recently made changes to their positions in TREX. Vanguard Group Inc. increased its stake in Trex by 0.6% in the 1st 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. Conestoga Capital Advisors LLC increased its stake in shares of Trex by 3.2% in the second quarter. Conestoga Capital Advisors LLC now owns 1,973,668 shares of the construction company’s stock worth $146,288,000 after acquiring an additional 60,405 shares during the last quarter. American Century Companies Inc. increased its stake in shares of Trex by 7.1% in the second quarter. American Century Companies Inc. now owns 1,843,376 shares of the construction company’s stock worth $136,631,000 after acquiring an additional 122,658 shares during the last quarter. Dimensional Fund Advisors LP raised its holdings in shares of Trex by 8.2% during the second quarter. Dimensional Fund Advisors LP now owns 1,224,351 shares of the construction company’s stock worth $90,752,000 after acquiring an additional 92,563 shares in the last quarter. Finally, Blair William & Co. IL boosted its position in Trex by 0.6% during the second quarter. Blair William & Co. IL now owns 1,144,126 shares of the construction company’s stock valued at $84,803,000 after purchasing an additional 6,901 shares during the last quarter. 95.96% of the stock is owned by hedge funds and other institutional investors.

Trex Price Performance

The business has a 50 day simple moving average of $65.23 and a 200 day simple moving average of $75.72. The stock has a market cap of $7.68 billion, a PE ratio of 29.19, a P/E/G ratio of 2.45 and a beta of 1.50.

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.