TREX Trex Company Inc

Kirby McInerney LLP has initiated an investigation into Trex Company, Inc. (NYSE:TREX) following a significant drop in its stock price after disappointing Q3 2025 financial results. Trex reported net sales 5% below guidance and revised its 2025 sales growth forecast down to approximately 0%. Investors who purchased Trex securities are encouraged to contact the firm to discuss their potential rights.

Shares of Trex Company (NYSE:TREX) rose after Goldman Sachs maintained a 'Buy' rating on the stock, despite lowering the price target. Investors appeared to focus on the continued confidence shown by the 'Buy' rating. The positive sentiment was also supported by a broader industry report highlighting growth in sustainable building materials, a key market for Trex.

Goldman Sachs analyst Susan Maklari has maintained a Buy rating for Trex Co (TREX) but lowered its price target from $63.00 to $54.00, a 14.29% decrease. This adjustment follows several recent fluctuations in analyst ratings for TREX, including upgrades, downgrades, and price target changes from other firms like Jefferies, Citigroup, Stifel, Barclays, and JP Morgan. Trex Co, a manufacturer of wood-alternative decking products, currently has an average target price of $43.76 among 20 analysts, implying a 26.22% upside from its current price of $34.67, with a consensus "Hold" status from 22 brokerage firms.

Over the last year, insiders at Trex Company (NYSE:TREX) sold US$520k worth of shares, exceeding the US$490k worth of shares they bought. While recent insider purchases of US$481k suggest some confidence, the overall selling activity over the past year indicates a potential hesitancy among insiders. Despite the net selling, insiders still own about 0.5% of the company, valued at US$20 million.

Pomerantz LLP is investigating potential securities fraud claims against Trex Company, Inc. (NYSE:TREX) on behalf of investors. This investigation follows Trex's disappointing third-quarter 2025 financial results, which missed consensus estimates and led to a significant 31.1% drop in its stock price. Investors are encouraged to contact Pomerantz LLP for information about joining a potential class action.

This article advises against investing in Trex (TREX) due to several concerns, including slow organic growth, declining free cash flow margins, and a decrease in Return on Invested Capital (ROIC). Despite a recent 35.2% stock drop, the analysis suggests that Trex does not meet quality investment criteria at its current valuation. The author recommends exploring other higher-quality stocks, specifically mentioning a curated list of "High Quality stocks" that have shown significant market-beating returns.