TREX Co. Inc. (NYSE:TREX) finished Wednesday with a subtraction of -$2.18 to close at $61.42, a downside of -3.43 percent. An average of 1,097,240 shares of common stock have been traded in the last five days. There was a fall of -$3.14 in the past week, and it reached a new high 22 times over the past 12 months. The last 20 days have seen an average of 937,085 shares traded, while the 50-day average volume stands at 988,000.
TREX stock has decreased by -10.54% in the last month. The company shares reached their 1-month lowest point of $61.24 on 09/27/23. With the stock rallying to its 52-week high on 08/02/23, shares of the company touched a low of $38.68 and a high of $76.05 in 52 weeks. It has reached a new high 27 times so far this year and achieved 45.10% or $19.09 in price. In spite of this, the price is down -19.24% from the 52-week high.
Valuation Metrics
TREX Co. Inc. (TREX) has a trailing price-to-earnings (P/E) ratio of 46.95. The stock’s beta is 1.51. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 6.83, the price-to-book (PB) ratio at 10.69.
Financial Health
The quick ratio of TREX Co. Inc. for the recent quarter was 0.92, and the current ratio was 1.14, indicating that the company is not able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.04 and a total debt to equity ratio of 0.38 for the recent quarter. TREX Co. Inc.’s EBITDA margin is 27.71%, while its operating margin for the same period stands at 21.63%. Its gross profit as reported stood at $403.99 million compared to revenue of $1.11 billion.
For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, TREX Co. Inc.’s return on assets was 14.58%.
Earnings Surprise
In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $77.04 million in the quarter, while revenues of $41.13 million were shrunk -15.42%. Shareholders own equity worth $108.56 million.
Technical Picture
From a technical analysis perspective, let’s take a brief look at TREX Co. Inc. (TREX) price momentum. RSI 9-day as of the close on 27 September was 26.00%, suggesting the stock is oversold, with historical volatility in this time frame at 27.62%.
As of today, TREX’s price is $63.29 -4.86% or -$3.14 from its 5-day moving average. TREX is currently trading -13.92% lower than its 20-day SMA and +15.39% higher than its 100-day SMA. However, the stock’s current price level is -11.18% below the SMA50 and +38.55% above the SMA200.
The stochastic %K and %D were 11.88% and 13.81%, respectively, and the average true range (ATR) was 1.89. With the 14-day stochastic at 2.19% and the average true range at 1.94, the RSI (14) stands at 31.94%. The stock has reached -0.99 on the 9-day MACD Oscillator while the 14-day reading was at -2.14.
Analyst Ratings
Citigroup launched coverage on TREX Co. Inc. (NYSE: TREX) in its analyst report released on August 25, 2023. The firm assigned the stock a Neutral rating. The consensus rating for TREX Co. Inc. (TREX) among analysts is Overweight. According to current brokerage recommendations, 1 brokerage firm advise that investors sell TREX, while 8 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 1 analysts, while 9 others rate it as a “buy”.
What is TREX’s price target for the next 12 months?
Analysts predict a range of price targets between $64.00 and $87.00, with a median target of $79.50. Taking a look at these predictions, the average price target given by analysts for TREX Co. Inc. (TREX) stock is $78.04.
