Zacks Investment Research Downgrades Trex (TREX) to Hold

Trex (NYSE:TREX) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Thursday.

According to Zacks, “Trex Company, Inc. is a manufacturer of wood-alternative decking and railing. Trex Company, Inc. is based in Winchester, United States. “

TREX has been the subject of a number of other reports. Sidoti lowered Trex from a “buy” rating to a “neutral” rating in a research report on Friday, August 10th. SunTrust Banks cut their price target on Trex to $58.00 and set a “hold” rating on the stock in a report on Tuesday. Four research analysts have rated the stock with a hold rating and two have assigned a buy rating to the company. The company currently has a consensus rating of “Hold” and a consensus price target of $36.35.

NYSE TREX traded down $0.22 on Thursday, reaching $64.94. 1,546,102 shares of the stock traded hands, compared to its average volume of 695,487. The firm has a market cap of $3.60 billion, a PE ratio of 41.10 and a beta of 2.25. Trex has a 12 month low of $50.72 and a 12 month high of $90.74.

Trex (NYSE:TREX) last issued its earnings results on Monday, October 29th. The construction company reported $0.57 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.52 by $0.05. The business had revenue of $166.38 million during the quarter, compared to analyst estimates of $173.10 million. Trex had a return on equity of 46.55% and a net margin of 19.16%. Trex’s revenue was up 18.7% on a year-over-year basis. During the same period in the previous year, the company posted $0.68 EPS. On average, equities research analysts anticipate that Trex will post 2.29 earnings per share for the current year.

In other news, Director Frank H. Merlotti, Jr. sold 3,051 shares of Trex stock in a transaction on Thursday, August 16th. The stock was sold at an average price of $77.39, for a total value of $236,116.89. Following the transaction, the director now directly owns 24,242 shares in the company, valued at approximately $1,876,088.38. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, VP Christopher Paul Gerhard sold 2,990 shares of Trex stock in a transaction on Wednesday, August 22nd. The shares were sold at an average price of $83.58, for a total value of $249,904.20. The disclosure for this sale can be found here. Company insiders own 0.95% of the company’s stock.

Several large investors have recently made changes to their positions in TREX. Advisory Services Network LLC grew its stake in Trex by 100.0% during the 2nd quarter. Advisory Services Network LLC now owns 2,000 shares of the construction company’s stock worth $133,000 after buying an additional 1,000 shares during the last quarter. Whittier Trust Co. grew its stake in Trex by 100.0% during the 2nd quarter. Whittier Trust Co. now owns 2,958 shares of the construction company’s stock worth $185,000 after buying an additional 1,479 shares during the last quarter. Bank of Montreal Can purchased a new position in Trex during the 2nd quarter worth $187,000. US Bancorp DE grew its stake in Trex by 100.0% during the 2nd quarter. US Bancorp DE now owns 3,084 shares of the construction company’s stock worth $193,000 after buying an additional 1,542 shares during the last quarter. Finally, First Citizens Bank & Trust Co. purchased a new position in Trex during the 3rd quarter worth $204,000. Institutional investors and hedge funds own 89.81% of the company’s stock.

Trex Company Profile

Trex Company, Inc manufactures and distributes wood/plastic composite products, and related accessories primarily for the residential and commercial decking, and railing applications in the United States. It offers Trex Transcend, Trex Enhance, and Trex Select protective shells for protection against fading, staining, mold, and scratching; and Trex Hideaway, a hidden fastening system for grooved boards.

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