Trex (NYSE:TREX) Sees Large Volume Increase After Better-Than-Expected Earnings

Shares of Trex Company, Inc. (NYSE:TREX) saw strong trading volume on Monday after the company announced better than expected quarterly earnings. 2,821,216 shares changed hands during trading, an increase of 132% from the previous session’s volume of 1,214,726 shares.The stock last traded at $61.44 and had previously closed at $60.58.

The construction company reported $0.09 earnings per share for the quarter, topping the consensus estimate of $0.04 by $0.05. Trex had a net margin of 20.23% and a return on equity of 28.89%. The company had revenue of $167.63 million for the quarter, compared to analyst estimates of $160.54 million.

Analyst Upgrades and Downgrades

A number of equities analysts recently weighed in on TREX shares. DA Davidson reaffirmed a “neutral” rating and issued a $74.00 target price on shares of Trex in a research note on Tuesday. Jefferies Financial Group cut their target price on Trex from $81.00 to $71.00 and set a “hold” rating on the stock in a research note on Tuesday. Citigroup lowered their price objective on shares of Trex from $84.00 to $78.00 and set a “neutral” rating on the stock in a report on Monday, January 6th. Robert W. Baird lifted their price target on shares of Trex from $70.00 to $78.00 and gave the company a “neutral” rating in a research note on Tuesday, October 29th. Finally, BMO Capital Markets increased their price objective on shares of Trex from $67.00 to $72.00 and gave the stock a “market perform” rating in a research note on Tuesday, October 29th. One investment analyst has rated the stock with a sell rating, ten have assigned a hold rating and six have given a buy rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $78.38.

Institutional Investors Weigh In On Trex

Institutional investors have recently modified their holdings of the business. Wilmington Savings Fund Society FSB bought a new position in Trex during the 3rd quarter worth $30,000. Mather Group LLC. lifted its position in Trex by 73.5% during the fourth quarter. Mather Group LLC. now owns 451 shares of the construction company’s stock worth $31,000 after purchasing an additional 191 shares during the period. Avior Wealth Management LLC grew its stake in Trex by 1,212.8% during the fourth quarter. Avior Wealth Management LLC now owns 512 shares of the construction company’s stock worth $35,000 after buying an additional 473 shares in the last quarter. Huntington National Bank increased its holdings in Trex by 227.2% in the 4th quarter. Huntington National Bank now owns 566 shares of the construction company’s stock valued at $39,000 after buying an additional 393 shares during the period. Finally, Eagle Bay Advisors LLC acquired a new position in shares of Trex in the 4th quarter valued at approximately $41,000. Institutional investors own 95.96% of the company’s stock.

Trex Stock Performance

The stock’s fifty day moving average price is $69.54 and its two-hundred day moving average price is $68.74. The company has a market cap of $6.68 billion, a P/E ratio of 28.46, a P/E/G ratio of 2.51 and a beta of 1.51.

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.