Trex (NYSE:TREX) Stock Passes Above Two Hundred Day Moving Average – Time to Sell?

Trex Company, Inc. (NYSE:TREX)’s stock price crossed above its two hundred day moving average during trading on Tuesday . The stock has a two hundred day moving average of $40.78 and traded as high as $48.46. Trex shares last traded at $47.1270, with a volume of 1,344,505 shares traded.

Analysts Set New Price Targets

A number of equities research analysts have recently weighed in on TREX shares. Weiss Ratings upgraded shares of Trex from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Monday, May 11th. Bank of America reduced their price target on Trex from $43.00 to $42.00 and set an “underperform” rating on the stock in a research report on Monday, April 20th. Wall Street Zen lowered Trex from a “hold” rating to a “sell” rating in a research note on Saturday, June 6th. Stifel Nicolaus lifted their price objective on Trex from $40.00 to $44.00 and gave the company a “hold” rating in a report on Monday, May 11th. Finally, Citigroup reiterated a “neutral” rating and set a $43.00 target price (down from $46.00) on shares of Trex in a research report on Monday, May 11th. Eleven investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Hold” and an average target price of $46.68.

Trex Price Performance

The business’s fifty day moving average price is $42.94 and its 200 day moving average price is $40.78. The stock has a market cap of $4.90 billion, a P/E ratio of 26.33, a PEG ratio of 9.81 and a beta of 1.46.

Trex (NYSE:TREX) last announced its quarterly earnings results on Thursday, May 7th. The construction company reported $0.59 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.51 by $0.08. The company had revenue of $343.40 million for the quarter, compared to analyst estimates of $339.99 million. Trex had a net margin of 16.25% and a return on equity of 19.66%. The firm’s revenue was up 1.0% on a year-over-year basis. During the same period in the previous year, the firm posted $0.60 EPS. On average, analysts predict that Trex Company, Inc. will post 1.68 earnings per share for the current fiscal year.

Insider Activity

In other news, SVP Jacob T. Rudolph sold 1,400 shares of the stock in a transaction on Thursday, June 25th. The stock was sold at an average price of $50.00, for a total value of $70,000.00. Following the completion of the transaction, the senior vice president directly owned 36,631 shares in the company, valued at approximately $1,831,550. This represents a 3.68% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 0.93% of the company’s stock.

Hedge Funds Weigh In On Trex

A number of institutional investors and hedge funds have recently bought and sold shares of TREX. Aquatic Capital Management LLC increased its stake in shares of Trex by 194.4% in the third quarter. Aquatic Capital Management LLC now owns 93,815 shares of the construction company’s stock valued at $4,847,000 after buying an additional 61,950 shares during the period. Allspring Global Investments Holdings LLC acquired a new stake in Trex during the 4th quarter worth approximately $4,748,000. M&T Bank Corp bought a new stake in Trex during the 4th quarter worth approximately $917,000. CWM LLC grew its holdings in Trex by 182.0% during the 4th quarter. CWM LLC now owns 85,995 shares of the construction company’s stock worth $3,017,000 after acquiring an additional 55,495 shares during the last quarter. Finally, Osborne Partners Capital Management LLC bought a new stake in Trex during the 4th quarter worth approximately $5,256,000. Institutional investors and hedge funds own 95.96% of the company’s stock.

About Trex

Trex Company, Inc is a leading manufacturer of wood-alternative decking and railing systems designed for residential and commercial outdoor living environments. The company’s core offerings feature composite decking products made from a proprietary blend of recycled wood fibers and plastic film, which deliver enhanced durability, resistance to rot and insect damage, and low maintenance compared to traditional wood. Trex also provides matching railing, lighting, fencing and cladding solutions that allow customers to create cohesive, high-performance outdoor spaces.

Trex’s product portfolio is organized into multiple performance tiers, including premium, mid-range and value-oriented lines.