Trex (NYSE:TREX) Trading Down 3.4% Following Analyst Downgrade

Trex Company, Inc. (NYSE:TREX) shares 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 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.

Other analysts have also issued reports about the company. Robert W. Baird lowered their price objective on Trex from $110.00 to $105.00 and set a “neutral” rating for the company in a research report on Friday, May 10th. Barclays lifted their price target 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. Finally, Benchmark restated a “buy” rating and issued a $105.00 price objective on shares of Trex in a report on Tuesday, May 14th. Two analysts have rated the stock with a sell rating, nine have given a hold rating and eight have assigned a buy rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $89.06.

Insider Buying and Selling at Trex

In other Trex 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 completion of the transaction, the senior vice president now directly owns 25,746 shares in the company, valued at $2,340,311.40. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Company insiders own 0.71% of the company’s stock.

Institutional Trading of Trex

A number of large investors have recently added to or reduced their stakes in the company. V Square Quantitative Management LLC acquired a new position in Trex during the fourth quarter worth approximately $25,000. Mather Group LLC. acquired a new position in shares of Trex during the 1st quarter worth approximately $26,000. Contravisory Investment Management Inc. acquired a new position in shares of Trex during the 4th quarter worth approximately $28,000. Headinvest LLC bought a new stake in Trex in the 3rd quarter valued at $29,000. Finally, Sunbelt Securities Inc. lifted its holdings in Trex by 1,744.4% during the 1st quarter. Sunbelt Securities Inc. now owns 332 shares of the construction company’s stock valued at $33,000 after purchasing an additional 314 shares during the last quarter. Institutional investors and hedge funds own 95.96% of the company’s stock.

Trex Price Performance

The stock has a market capitalization of $7.71 billion, a P/E ratio of 30.45, a PEG ratio of 1.59 and a beta of 1.50. The stock’s 50-day simple moving average is $84.46 and its 200 day simple moving average is $87.39.

Trex (NYSE:TREX) last posted its quarterly 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. The business had revenue of $373.64 million during the quarter, compared to the consensus estimate of $367.31 million. Trex had a return on equity of 35.33% and a net margin of 20.60%. Trex’s revenue for the quarter was up 56.5% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.38 earnings per share. As a group, analysts expect 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.