Trex Company Inc. (NYSE:TREX) closed Wednesday at $46.34 per share, up from $45.76 a day earlier. While Trex Company Inc. has overperformed by 1.27%, investors are advised to look at stock chart patterns for technical insight. Within its last year performance, TREX fell by -64.70%, with highs and lows ranging from $140.98 to $38.68, whereas the simple moving average fell by -21.55% in the last 200 days.
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On October 14, 2022, Credit Suisse Downgraded Trex Company Inc. (NYSE: TREX) to Underperform. A report published by Truist on October 06, 2022, Reiterated its previous ‘Buy’ rating for TREX. Deutsche Bank also rated TREX shares as ‘Buy’, setting a target price of $87 on the company’s shares in an initiating report dated August 18, 2022. Credit Suisse May 11, 2022d its ‘Underperform’ rating to ‘Neutral’ for TREX, as published in its report on May 11, 2022. BofA Securities’s report from April 25, 2022 suggests a price prediction of $60 for TREX shares, giving the stock a ‘Underperform’ rating. Loop Capital also rated the stock as ‘Hold’.
Analysis of Trex Company Inc. (TREX)
Further, the quarter-over-quarter decrease in sales is -43.90%, showing a negative trend in the upcoming months.
There are several well-rounded types of analysis and research techniques that can be used to gain a clear view of Trex Company Inc.’s future performance, with equity being one of the most critical indicators. The goal here is to ensure that your current return on equity of 30.20% is sufficient for you to turn a profit off your investment. Taking into account the quick ratio of the company, currently set at 0.60, you can see that the company can cover any debts it may have, which can easily be seen in the annual report of the company.
As an indicator of volatility for any stock, average volume can also be very valuable, and TREX is recording an average volume of 1.35M. On a monthly basis, the volatility of the stock is set at 5.41%, whereas on a weekly basis, it is put at 3.17%, with a loss of -2.05% over the past seven days. Furthermore, long-term investors anticipate a median target price of $52.53, showing growth from the present price of $46.34, which can serve as yet another indication of whether TREX is worth investing in or should be passed over.
How Do You Analyze Trex Company Inc. Shares?
Trex Company Inc. (TREX) is based in the USA and is one of the most prominent companies operating in the Building Products & Equipment market. When comparing Trex Company Inc. shares with other companies under Industrials, the P/E value is an influential factor to note. This is because it represents an indication of the future growth of the company in terms of investors’ expectations. Ultimately, the value of the latter should demonstrate steady, rapid growth, which is an accurate measure of the company’s progress. In addition to the value of 26.45, there is a growth in quarterly earnings of -79.50%.
Apart from looking at the fundamentals, you should also pay attention to the number of company employees who own shares. This is because the values should be in line with investors’ expectations. As such, the current holdings of company stock inside the company are set at 0.30%. This can enable you to see the extent to which executives own the company’s stock. As opposed to executive stock, institutional ownership accounts for 99.30% of the company’s shares, contributing to an indication of company value, since large shareholders may signify strength within the organization.
Are institutional investors increasing their holdings in TREX shares?
The recent increase in stakes in TREX appears to be a result of several institutional investors and hedge funds increasing their positions. The Vanguard Group, Inc.’s position in TREX has decreased by -1.86% in the first quarter. The company now owns 9,931,645 shares of the stock, with a value of $477.61 million, following the sale of -188,064 additional shares during the last quarter. BlackRock Fund Advisors made another decreased to its shares in TREX during the first quarter, downing its stake by -2.41%. During the last quarter, the company dropped down -225,717 additional shares for a total stake of worth $439.83 million, bringing number of shares owned by the company to 9,145,899.
During the first quarter, AllianceBernstein LP subtracted a -1,808,661 position in TREX. Wasatch Advisors, Inc. purchased an additional 0.44 million shares in the last quarter, increasing its holdings by 8.69%, now holding 5.46 million shares worth $262.74 million. At the end of the first quarter, T. Rowe Price Associates, Inc. decreased its TREX holdings by -29.91% and now holds 5.06 million TREX shares valued at $243.32 million with the lessened -2.16 million shares during the period. TREX shares are owned by institutional investors to the tune of 99.30% at present.