Trex Company, Inc. (NYSE:TREX) announced its earnings results on October 10, 2023, revealing that it fell short of analysts’ expectations for the third quarter. The construction firm reported earnings of $0.51 per share, missing the consensus estimate of $0.57 by $0.06, as noted by Zacks Investment Research. Despite the earnings miss, Trex maintained a robust return on equity of 21.27% and a net margin of 16.53%.
In response to the results, Trex updated its guidance for the fiscal year 2025, reflecting changes in its earnings per share projections. The stock experienced a decline during midday trading on the same day, dropping $0.90 to $47.04. Trading volume surged, with 3,272,964 shares exchanged compared to the average volume of 1,641,404. Trex’s market capitalization now stands at $5.04 billion, with a price-to-earnings (P/E) ratio of 27.19 and a beta of 1.49.
Stock Performance and Insider Activity
The company’s stock performance has been notably volatile, with a fifty-day moving average of $54.49 and a two-hundred-day moving average of $57.74. Over the past year, Trex has seen a low of $46.31 and a high of $80.74.
In related news, Senior Vice President Amy M. Fernandez sold 1,538 shares of Trex on August 6, 2023, at an average price of $64.18, amounting to a total transaction of $98,708.84. Following this transaction, Fernandez holds 22,953 shares valued at approximately $1,473,123.54, reflecting a 6.28% decrease in her holdings. This sale was reported in a filing with the U.S. Securities and Exchange Commission (SEC).
Analysts Weigh In on Trex Stock
Recent reports from equities research analysts indicate a mixed outlook for Trex. The Goldman Sachs Group revised its price target from $83.00 to $73.00, maintaining a “buy” rating on the stock as of October 13, 2023. Meanwhile, Wall Street Zen upgraded the stock from a “sell” to a “hold” rating on August 9, 2023. Other analysts, such as Zelman & Associates, lowered their price target from $74.00 to $66.00 while still rating it as “outperform.”
Currently, two analysts have classified Trex as a strong buy, ten as a buy, eight as a hold, and two as a sell. MarketBeat shows that Trex has an average rating of “Moderate Buy” with a consensus price target of $70.71.
Trex Company, headquartered in Winchester, Virginia, specializes in manufacturing and distributing composite decking, railing, and outdoor living products for both residential and commercial markets in the United States. Its product lineup includes the Trex Transcend, Trex Select, and Trex Enhance brands, designed for durability against fading, staining, mold, and scratching.
As Trex navigates these developments, investors will be watching closely for further updates that could impact performance going into the next quarter.
