What’s Trex Company, Inc. (TREX) Upside After Forming Multiple Top Pattern?

May 23, 2018 - By Graig Alexander

Trex Company, Inc. (NYSE:TREX) Logo

Investors sentiment decreased to 1.06 in Q4 2017. Its down 0.29, from 1.35 in 2017Q3. It worsened, as 8 investors sold Trex Company, Inc. shares while 93 reduced holdings. 49 funds opened positions while 58 raised stakes. 25.62 million shares or 0.85% less from 25.84 million shares in 2017Q3 were reported.
Macquarie Group Incorporated Ltd has invested 0.04% in Trex Company, Inc. (NYSE:TREX). Schwab Charles Management Inc holds 0.01% in Trex Company, Inc. (NYSE:TREX) or 144,224 shares. Creative Planning reported 5,677 shares stake. Massachusetts Financial Ma invested 0.01% in Trex Company, Inc. (NYSE:TREX). Next Century Growth Investors Ltd invested 0.65% in Trex Company, Inc. (NYSE:TREX). Fund stated it has 0% in Trex Company, Inc. (NYSE:TREX). Voya Invest Management Ltd Liability Com reported 0% in Trex Company, Inc. (NYSE:TREX). Moreover, Ubs Asset Management Americas has 0% invested in Trex Company, Inc. (NYSE:TREX). Fiera Capital invested 0.04% in Trex Company, Inc. (NYSE:TREX). Bnp Paribas Arbitrage Sa holds 0% of its portfolio in Trex Company, Inc. (NYSE:TREX) for 12,317 shares. Retail Bank Of New York Mellon Corporation owns 0.01% invested in Trex Company, Inc. (NYSE:TREX) for 365,402 shares. Tower Rech Cap Lc (Trc) invested 0.01% in Trex Company, Inc. (NYSE:TREX). Suntrust Banks Inc holds 0% or 2,397 shares in its portfolio. The Massachusetts-based Geode Mngmt Ltd Com has invested 0.01% in Trex Company, Inc. (NYSE:TREX). Granahan Investment Mgmt Ma reported 0.02% stake.

Since January 16, 2018, it had 1 buy, and 12 insider sales for $7.52 million activity. ROBINSON PATRICIA B sold $362,997 worth of stock. 2,472 shares valued at $281,650 were sold by FAIRBANKS BRYAN HORIX on Wednesday, May 9. $370,973 worth of Trex Company, Inc. (NYSE:TREX) was sold by Gupp William R.. The insider MERLOTTI FRANK H JR sold 1,481 shares worth $165,125. The insider Golden Michael F sold 4,051 shares worth $437,754. 3,500 shares were sold by Gerhard Christopher Paul, worth $376,164.

The stock of Trex Company, Inc. (TREX) shows a multiple tops pattern with $121.76 target or 6.00 % above today’s $114.86 share price. The 5 months chart pattern indicates low risk for the $3.38 billion company. It was reported on May, 23 by Finviz.com. If the $121.76 price target is reached, the company will be worth $202.80 million more.
Multiple tops are chart patterns with decent performance in a bull market. The failure rate is higher but the average decline is reasonable. Back-tests of such patterns show that the break even failure rate is 10%, the average rise: 19%, the throwback rate: 61% and the percentage of stocks meeting their price targets: 40%.

The stock increased 1.07% or $1.214 during the last trading session, reaching $114.864. About 63,313 shares traded. Trex Company, Inc. (NYSE:TREX) has risen 53.31% since May 23, 2017 and is uptrending. It has outperformed by 41.76% the S&P500.

Analysts await Trex Company, Inc. (NYSE:TREX) to report earnings on July, 30. They expect $1.29 earnings per share, up 32.99 % or $0.32 from last year’s $0.97 per share. TREX’s profit will be $37.96M for 22.26 P/E if the $1.29 EPS becomes a reality. After $1.25 actual earnings per share reported by Trex Company, Inc. for the previous quarter, Wall Street now forecasts 3.20 % EPS growth.

Trex Company, Inc. (NYSE:TREX) Ratings Coverage

Among 6 analysts covering Trex Company (NYSE:TREX), 4 have Buy rating, 0 Sell and 2 Hold. Therefore 67% are positive. Trex Company had 11 analyst reports since December 8, 2017 according to SRatingsIntel. The stock of Trex Company, Inc. (NYSE:TREX) has “Hold” rating given on Friday, December 8 by Stifel Nicolaus. Stifel Nicolaus maintained the stock with “Hold” rating in Thursday, February 22 report. On Thursday, March 22 the stock rating was maintained by FBR Capital with “Buy”. The stock of Trex Company, Inc. (NYSE:TREX) earned “Buy” rating by B. Riley & Co on Wednesday, January 3. B. Riley & Co maintained the stock with “Buy” rating in Thursday, February 22 report. FBR Capital upgraded the stock to “Buy” rating in Wednesday, January 3 report. The firm has “Buy” rating by FBR Capital given on Tuesday, May 8. The firm has “Hold” rating by SunTrust given on Thursday, February 22. The stock of Trex Company, Inc. (NYSE:TREX) has “Buy” rating given on Tuesday, May 8 by Sidoti. The company was maintained on Thursday, February 22 by FBR Capital.

More notable recent Trex Company, Inc. (NYSE:TREX) news were published by: Seekingalpha.com which released: “Trex’s (TREX) CEO James Cline on Q1 2018 Results – Earnings Call Transcript” on May 08, 2018, also Globenewswire.com with their article: “Trex Company Announces Plastic Film Recycling Challenge Winners” published on May 04, 2018, Foxbusiness.com published: “Trex Company Inc Continues to Deliver Record Growth” on May 11, 2018. More interesting news about Trex Company, Inc. (NYSE:TREX) were released by: Nasdaq.com and their article: “3 Stocks for Retirees to Grow Their Nest Egg” published on May 19, 2018 as well as Fool.com‘s news article titled: “Trex Company Inc Stock Is Up 12% After Earnings: Here’s Why” with publication date: May 08, 2018.

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. The company has market cap of $3.38 billion. 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. It has a 35.67 P/E ratio. The firm also provides railing products, such as Trex Transcend Railing for use with Trex decking products and other decking materials; Trex Select Railing for consumers, who desire a simple clean finished look for their decks; and Trex Signature aluminum railing for contemporary look.

Trex Company, Inc. (NYSE:TREX) Institutional Positions Chart

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