Trex (NYSE:TREX) Shares Gap Up – Should You Buy?

Trex Company, Inc. (NYSE:TREX)’s share price gapped up prior to trading on Monday . The stock had previously closed at $59.43, but opened at $62.53. Trex shares last traded at $63.41, with a volume of 278,115 shares.

Analyst Upgrades and Downgrades

Several equities analysts have weighed in on the stock. Bank of America lowered their price target on shares of Trex from $85.00 to $79.00 and set a “buy” rating on the stock in a report on Tuesday, February 25th. DA Davidson restated a “neutral” rating and set a $74.00 target price on shares of Trex in a research note on Tuesday, February 25th. Benchmark reiterated a “buy” rating and issued a $80.00 price target on shares of Trex in a research note on Monday, March 3rd. Citigroup lowered their price objective on Trex from $84.00 to $78.00 and set a “neutral” rating on the stock in a research report on Monday, January 6th. Finally, StockNews.com cut Trex from a “hold” rating to a “sell” rating in a research report on Wednesday, March 5th. Two analysts have rated the stock with a sell rating, nine have given a hold rating and six have issued a buy rating to the company. According to MarketBeat.com, Trex presently has an average rating of “Hold” and an average target price of $78.63.

Trex Price Performance

The company has a 50-day moving average of $65.27 and a 200 day moving average of $68.05. The company has a market cap of $6.65 billion, a PE ratio of 28.33, a price-to-earnings-growth ratio of 2.51 and a beta of 1.60.

Trex (NYSE:TREX) last released its earnings results on Monday, February 24th. The construction company reported $0.09 earnings per share for the quarter, beating the consensus estimate of $0.04 by $0.05. The firm had revenue of $167.63 million for the quarter, compared to the consensus estimate of $160.54 million. Trex had a return on equity of 28.89% and a net margin of 20.23%. Equities research analysts expect that Trex Company, Inc. will post 2.04 EPS for the current year.

Insider Buying and Selling

In related news, Director Melkeya Mcduffie sold 1,420 shares of the firm’s stock in a transaction that occurred on Friday, February 28th. The stock was sold at an average price of $61.88, for a total transaction of $87,869.60. Following the completion of the sale, the director now directly owns 1,705 shares of the company’s stock, valued at approximately $105,505.40. This trade represents a 45.44 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 0.71% of the stock is owned by corporate insiders.

Institutional Trading of Trex

Hedge funds and other institutional investors have recently bought and sold shares of the business. JPMorgan Chase & Co. grew its holdings in shares of Trex by 97.6% in the third quarter. JPMorgan Chase & Co. now owns 797,513 shares of the construction company’s stock worth $53,098,000 after purchasing an additional 393,850 shares during the last quarter. Atomi Financial Group Inc. purchased a new stake in Trex in the 4th quarter valued at about $247,000. Charles Schwab Investment Management Inc. grew its stake in Trex by 3.2% in the 3rd quarter. Charles Schwab Investment Management Inc. now owns 902,070 shares of the construction company’s stock worth $60,060,000 after acquiring an additional 27,992 shares in the last quarter. SG Americas Securities LLC increased its position in shares of Trex by 298.5% during the fourth quarter. SG Americas Securities LLC now owns 6,137 shares of the construction company’s stock worth $424,000 after acquiring an additional 4,597 shares during the period. Finally, Point72 Asset Management L.P. raised its stake in shares of Trex by 100.0% during the third quarter. Point72 Asset Management L.P. now owns 1,022,459 shares of the construction company’s stock valued at $68,075,000 after acquiring an additional 511,163 shares in the last quarter. Hedge funds and other institutional investors own 95.96% of the company’s stock.

Trex Company Profile

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.