Trex (NYSE:TREX) Downgraded by Wall Street Zen to Sell

Trex (NYSE:TREX) was downgraded by research analysts at Wall Street Zen from a “hold” rating to a “sell” rating in a research note issued to investors on Saturday.

Several other research analysts also recently commented on the company. Bank of America lowered their target price on Trex from $43.00 to $42.00 and set an “underperform” rating for the company in a research note on Monday, April 20th. Stifel Nicolaus boosted their target price on Trex from $40.00 to $44.00 and gave the stock a “hold” rating in a research note on Monday, May 11th. Benchmark downgraded Trex from a “buy” rating to a “hold” rating in a research note on Wednesday, February 11th. UBS Group reissued a “buy” rating and set a $59.00 target price (up from $58.00) on shares of Trex in a research note on Friday, May 8th. Finally, Citigroup reissued a “neutral” rating and set a $43.00 target price (down from $46.00) on shares of Trex in a research note on Monday, May 11th. Eleven analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and an average price target of $46.42.

Trex Stock Down 0.9%

TREX stock opened at $39.79 on Friday. The company has a market cap of $4.13 billion, a PE ratio of 22.23, a price-to-earnings-growth ratio of 8.13 and a beta of 1.51. The business has a 50-day simple moving average of $39.37 and a 200 day simple moving average of $38.69. Trex has a 52 week low of $29.77 and a 52 week high of $68.78.

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

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in TREX. Wellington Management Group LLP increased its stake in shares of Trex by 266.0% in the fourth quarter. Wellington Management Group LLP now owns 7,225,393 shares of the construction company’s stock valued at $253,467,000 after buying an additional 5,251,297 shares during the period. AQR Capital Management LLC increased its stake in shares of Trex by 143.8% in the fourth quarter. AQR Capital Management LLC now owns 3,895,534 shares of the construction company’s stock valued at $136,655,000 after buying an additional 2,297,533 shares during the period. Norges Bank acquired a new position in shares of Trex in the fourth quarter valued at approximately $62,904,000. Freestone Grove Partners LP acquired a new position in shares of Trex in the fourth quarter valued at approximately $53,951,000. Finally, Impax Asset Management Group plc increased its stake in shares of Trex by 93.0% in the third quarter. Impax Asset Management Group plc now owns 1,934,581 shares of the construction company’s stock valued at $99,354,000 after buying an additional 932,247 shares during the period. 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.