Trex Co SVP Sold $98K In Company Stock

Revealing a significant insider sell on August 7, Amy M Fernandez, SVP at Trex Co (NYSE:TREX), as per the latest SEC filing.

What Happened: Fernandez opted to sell 1,538 shares of Trex Co, according to a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The transaction's total worth stands at $98,711.

Trex Co shares are trading up 0.02% at $61.47 at the time of this writing on Friday morning.

Get to Know Trex Co Better

Trex Co Inc is a manufacturer of wooden alternative decking products. The company offers outdoor products in the decking, railing, porch, fencing, trim, steel deck framing, and outdoor lighting categories. Its products are sold under the Trex brand and manufactured in the United States. Further, the company licenses its Trex brand to third parties to manufacture and sell products under the Trex trademark. The distribution is focused on wholesale distributors and retail lumber dealers, which in turn sell Trex products to homeowners and contractors, with an emphasis on professional contractors, remodelers, and homebuilders. The company operates in one reportable segment i.e. Trex Residential.

Trex Co: Financial Performance Dissected

Revenue Growth: Trex Co's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2025, the company achieved a revenue growth rate of approximately 3.01%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.

Navigating Financial Profits:

• Gross Margin: The company excels with a remarkable gross margin of 40.78%, indicating superior cost efficiency and profitability compared to its industry peers.

• Earnings per Share (EPS): Trex Co's EPS is below the industry average. The company faced challenges with a current EPS of 0.71. This suggests a potential decline in earnings.

Debt Management: Trex Co's debt-to-equity ratio is below the industry average. With a ratio of 0.3, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Insights into Valuation Metrics:

• Price to Earnings (P/E) Ratio: Trex Co's current Price to Earnings (P/E) ratio of 35.32 is higher than the industry average, indicating that the stock may be overvalued according to market sentiment.

• Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 5.85 as compared to the industry average, the stock might be considered overvalued based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): At 22.12, the company's EV/EBITDA ratio outperforms industry norms, reflecting positive market perception. This positioning indicates optimistic expectations for the company's future performance.

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

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Why Insider Transactions Are Important

Investors should view insider transactions as part of a multifaceted analysis and not rely solely on them for decision-making.

Considering the legal perspective, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, according to Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.

Transaction Codes To Focus On

When analyzing transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase,while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Trex Co's Insider Trades.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.