Trex co director McDuffie Melkeya sells stock for $87,872

Published 28/02/2025, 19:50
Trex co director McDuffie Melkeya sells stock for $87,872

In a recent transaction, McDuffie Melkeya, a director at Trex Co Inc (NYSE:TREX), sold 1,420 shares of the company’s common stock. The shares were sold at a weighted average price of $61.88, resulting in a total transaction value of approximately $87,872. This sale reduces Melkeya’s holdings to 1,705 shares. The transaction took place on February 28, 2025, according to the SEC filing.The sale comes as Trex, a $6.5 billion market cap company, trades near its 52-week low of $58.68, with the stock down 12.6% year-to-date. InvestingPro analysis indicates the stock is currently overvalued, with volatility being a key characteristic of recent price movements. For deeper insights into Trex’s valuation and 12 additional ProTips, plus comprehensive analysis of over 1,400 stocks, consider exploring InvestingPro.

In other recent news, Trex Company, Inc. reported a strong performance in its fourth-quarter 2024 earnings, with earnings per share (EPS) of $0.09, significantly exceeding the forecast of $0.04. The company achieved revenue of $168 million, surpassing expectations by $8.71 million. Trex’s full-year net sales for 2024 reached $1.2 billion, marking a 5% increase compared to 2023, while net income grew by 10% to $226 million. Despite a 14% decrease in Q4 net sales compared to the same period last year, the company’s overall growth remains strong, driven by innovation and market expansion.

In related developments, Trex has projected a 5-7% revenue growth for 2025, with expectations of double-digit growth in its railing product sales. Analyst firms have adjusted their positions on Trex, with Jefferies lowering the price target to $71 from $81 while maintaining a Hold rating, and Truist Securities reducing the price target to $90 from $100 but reaffirming a Buy rating. DA Davidson kept its Neutral rating and a $74 price target, highlighting the company’s strong sell-through performance and robust profit margins.

Trex’s management has expressed confidence in the upcoming fiscal year, with plans to expand its Arkansas facility and focus on digital transformation efforts. The company anticipates a smoother operation through more conservative channel infill management and expects stabilization in distribution movements. These recent developments reflect Trex’s strategic initiatives and market expansion, setting the stage for continued growth despite broader market challenges.

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