Group 1 - Wolfe Research upgraded Trex (NYSE: TREX) to Outperform from Peer Perform and set a $47 price target, with shares rising more than 1% in pre-market trading [1] - Trex shares had fallen nearly 50% in 2025, underperforming the broader building products group by approximately 27 percentage points [1] - Wolfe acknowledged investor concerns regarding future market share gains after James Hardie's acquisition of AZEK, but noted that the selloff created an excessive valuation discount [1] Group 2 - Trex was trading at 12.3x Wolfe's 2026 EBITDA estimate, which is a 44% discount to its long-term average multiple and a 53% discount to its 2018–2024 average [2] - Returns had declined as Trex invested in capacity, maintained higher inventory under its even-flow production model, and increased SG&A spending amid muted market growth [2] - Wolfe projected a 16% ROIC in 2026, the second-highest in its coverage universe, and stated that the decking industry's growth profile warranted a premium valuation [2] - The $47 target implies a roughly 15x EV/EBITDA multiple [2]

Core Insights - Trex Company (TREX) is not anticipating a revenue recovery in 2025 due to weak remodeling demand [1] - Analysts predict a further decline in earnings for Trex in 2026, maintaining a Zacks Rank of 5 (Strong Sell) [1][7] Financial Performance - In Q3 2025, Trex reported earnings of $0.51, missing the Zacks Consensus estimate of $0.56, marking the first earnings miss in three years [2] - Sales increased by 22.1% to $285 million, driven by strong railing sales, although decking sales continue to struggle [2] - Analysts have revised down earnings estimates for 2025 from $2.21 to $1.83, reflecting a 12.4% decline, and for 2026 from $2.51 to $1.66, indicating a 9% decline [4] Market Conditions - The home remodeling industry is facing challenges, with weak market conditions persisting into 2026 [6] - Trex's forward P/E ratio stands at 19.4, which is considered high, indicating that the stock is not undervalued [12] - The company has authorized a $50 million share repurchase program, but does not pay dividends [12]

Core Viewpoint - Trex Company, Inc. is under investigation for potential violations of federal securities laws following disappointing financial results and a significant drop in stock price [1][3]. Financial Performance - On November 4, 2025, Trex reported Q3 2025 net sales of $285 million, which was 5% below the mid-point of its guidance and a sequential decline of approximately 26% [3]. - The company experienced a 12% decline in net income per share for the nine months ending September 30, 2025, compared to the same period in the previous year [3]. - Trex revised its FY 2025 sales growth guidance down to roughly 0% compared to 2024, indicating a muted outlook for the fourth quarter [3]. Stock Market Reaction - Following the disappointing results, Trex's share price fell by $14.61, or about 31.07%, from $47.04 on November 4, 2025, to close at $32.43 on November 5, 2025 [3]. Company Strategy - Trex had previously assured investors that its revised inventory strategy would reduce volatility associated with channel stocking and de-stocking, and aimed for FY 2025 sales growth of 5% to 7% [2].

NEW YORK, Dec. 11, 2025 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, is investigating potential claims against Trex Company, Inc. (NYSE:TREX), United Homes Group, Inc. (NASDAQ:UHG), and Nidec Corporation (OTCMKTS:NJDCY). Our investigations concern whether these companies have violated the federal securities laws and/or engaged in other unlawful business practices. Additional information about each case can be found at the link provided. Trex Company, ...

Core Viewpoint - Pomerantz LLP is investigating potential securities fraud or unlawful business practices involving Trex Company, Inc. and its officers or directors [1] Financial Performance - On November 4, 2025, Trex reported its third quarter 2025 financial results, which fell short of consensus estimates, showing a 12% decline in net income per share [2] - Trex anticipates a "muted" fourth quarter, expecting channel partners to reduce their inventories for the remainder of the year [2] - Following the financial results announcement, Trex's stock price dropped by $14.61 per share, or 31.1%, closing at $32.43 per share on November 5, 2025 [2]

Core Insights - The Mairs & Power Small Cap Fund reported a return of 2.06% in the first nine months of 2025, underperforming the benchmark Russell 2000 Total Returns Index, which increased by 10.39% [1] - The market remains concentrated in 2025, with a few dominant mega-cap stocks related to artificial intelligence driving most favorable outcomes [1] Company Highlights - Trex Company, Inc. (NYSE:TREX) is a manufacturer of composite decking and outdoor living products, with a one-month return of 9.53% but a significant decline of 54.84% over the last 52 weeks [2] - As of December 10, 2025, Trex's stock closed at $35.39 per share, with a market capitalization of $3.796 billion [2] - The Mairs & Power Small Cap Fund initiated a position in Trex during the third quarter of 2025, viewing its valuation as attractive amid concerns about a slowing housing industry [3] Investment Sentiment - Trex Company, Inc. was held by 41 hedge fund portfolios at the end of the third quarter, indicating stable interest among institutional investors [4] - Despite Trex's potential, the sentiment suggests that certain AI stocks may offer greater upside potential and less downside risk compared to Trex [4]

Core Insights - Trex composite decking has been awarded "The Coolest Thing Made in Virginia" in the Rubber and Plastics Products category at the 2025 Virginia Manufacturing Cup, highlighting the company's innovation and craftsmanship in the manufacturing sector [1][5]. Company Overview - Trex Company, headquartered in Winchester, Virginia, is the world's largest manufacturer of wood-alternative decking and has been a leader in redefining outdoor living for over 30 years [2][7]. - The company employs more than 1,800 people across its headquarters and manufacturing facilities in Virginia, Nevada, and Arkansas, with a sales team servicing six continents [4]. Product Features - Trex composite decking is made from up to 95% recycled and reclaimed materials, offering an eco-friendly, durable, and low-maintenance alternative to traditional wood [3]. - The decking is engineered to resist fading, staining, scratching, and mold, and does not rot, warp, crack, or splinter, requiring only occasional cleaning with soap and water [3]. Recognition and Awards - The 2025 Virginia Manufacturing Cup featured 89 competitors across 11 categories, with nearly 50,000 votes cast, showcasing the competitive landscape of Virginia's manufacturing community [5]. - Trex has received multiple accolades, including being named America's Most Trusted Outdoor Decking for five consecutive years (2021-2025) and ranking on Barron's list of the 100 Most Sustainable U.S. Companies for 2024 and 2025 [7]. Product Portfolio - In addition to composite decking, Trex offers a wide range of outdoor living products, including railing, deck drainage, LED lighting, outdoor kitchen components, pergolas, spiral stairs, fencing, lattice, and outdoor furniture, all marketed under the Trex brand [6][7].

Core Insights - Bragar Eagel & Squire, P.C. is investigating potential claims against Trex Company, Inc., United Homes Group, Inc., and Nidec Corporation for possible violations of federal securities laws and unlawful business practices [1] Trex Company, Inc. (NYSE:TREX) - Trex reported disappointing Q3 2025 financial results with net sales of $285 million, which was 5% below the mid-point of its guidance and a sequential decline of about 26% [5] - The company experienced a 12% decline in net income per share for the nine months ended September 30, 2025, compared to the prior year [5] - Trex revised its FY 2025 sales growth guidance down to roughly 0% compared to 2024, expecting a "muted" fourth quarter [5] - Following the announcement, Trex's share price fell by $14.61, or approximately 31.07%, closing at $32.43 on November 5, 2025 [5] United Homes Group, Inc. (NASDAQ:UHG) - On October 20, 2025, six board members of UHG resigned after Executive Chairman Michael Nieri refused to step down or forgo future compensation [5] - The special committee of independent directors concluded that continuing as an independent public company was in the best interests of UHG and its stockholders [5] - UHG's stock price fell by $2.24, or 52.46%, closing at $2.03 per share on October 20, 2025 [5] Nidec Corporation (OTCMKTS:NJDCY) - Nidec established a third-party committee to investigate suspicions of improper accounting, revealing multiple documents suggesting potential improper practices [5] - Following the initial disclosure, Nidec's ADR price fell by $0.81, or 16.5%, closing at $4.11 on September 4, 2025 [5] - On September 26, 2025, Nidec disclosed further findings of inappropriate accounting practices, leading to a decline in ADR price by $0.29, or 6.6%, to $4.09 [5] - Nidec withdrew its year-end forecast and decided not to pay a surplus dividend due to ongoing investigations, resulting in a price drop of $1.17, or 25.4%, to $3.43 on October 23, 2025 [5] - The Tokyo Stock Exchange designated Nidec under a Special Security alert due to identified deficiencies in its internal management systems [5][8]

Core Insights - Trex Company, Inc. is under investigation for potential violations of federal securities laws following disappointing financial results [1][2] - The company reported a 12% decline in net income per share for Q3 2025 and anticipates a "muted" fourth quarter due to inventory reductions by channel partners [2] - Following the announcement, Trex's stock price dropped by $14.61, or 31.1%, closing at $32.43 per share on November 5, 2025, resulting in investor losses [2] Financial Performance - Trex's Q3 2025 financial results missed consensus estimates, indicating a significant decline in profitability [2] - The company expects continued challenges in Q4 2025, attributing this to inventory adjustments by its channel partners [2] Stock Market Reaction - The announcement of the financial results led to a substantial decline in Trex's stock price, reflecting negative investor sentiment and potential concerns about future performance [2]

Core Viewpoint - Trex Company, Inc. has potentially violated federal securities laws, leading to an investigation by the Law Offices of Howard G. Smith on behalf of its investors [1]. Financial Performance - On November 4, 2025, Trex reported its third quarter 2025 financial results, which included a 12% decline in net income per share, missing consensus estimates [3]. - The company anticipates a "muted" fourth quarter, expecting channel partners to reduce their inventories for the remainder of the year [3]. Stock Market Reaction - Following the release of the disappointing financial results, Trex's stock price dropped by $14.61, or 31.1%, closing at $32.43 per share on November 5, 2025, resulting in significant losses for investors [3].