Masterton Capital Management Reduces Trex Holdings
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 25 2026
0mins
Should l Buy TREX?
Source: Fool
- Share Reduction Details: Masterton Capital Management sold 107,400 shares of Trex in Q4 2025 for approximately $4.34 million, indicating a reduced confidence in Trex as its stake dropped from 4.4% to 1.17% of total AUM.
- Value of Holdings: By the end of Q4 2025, Masterton's Trex holdings were valued at $1.68 million, reflecting a significant decrease in investment that may influence future investment strategies.
- Market Performance Analysis: Trex's stock price has declined by 36.6% over the past year, closing at $42.35 on February 17, 2026, underperforming the S&P 500 by 49 percentage points, highlighting market concerns about its outlook.
- Financial Performance Overview: Trex's Q4 earnings exceeded analyst expectations, and management raised future sales guidance, indicating strong performance in new product sales, despite ongoing challenges in the macroeconomic environment.
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Analyst Views on TREX
Wall Street analysts forecast TREX stock price to rise
17 Analyst Rating
8 Buy
7 Hold
2 Sell
Moderate Buy
Current: 42.770
Low
32.00
Averages
43.56
High
57.00
Current: 42.770
Low
32.00
Averages
43.56
High
57.00
About TREX
Trex Company, Inc. is a manufacturer of wood-alternative decking and residential railing and outdoor living products and accessories, marketed under the brand name Trex. The Company’s segment is Trex Residential. Its product categories include decking and accessories, railing, and fencing. Its decking products are made in a proprietary process that combines reclaimed wood fibers and recycled polyethylene film. Its decking and accessories include Trex Signature decking, Trex Transcend Lineage decking, Trex Transcend decking, Trex Select decking, Trex Enhance decking, Trex Hideaway Fastener Collection, and Trex DeckLighting outdoor lighting system. Its Trex Transcend decking product can also be used as cladding. Its railing products include Trex Signature X-Series railing, Trex Signature Aluminum railing, Trex Transcend railing, Trex Select railing, Trex Select T-Rail, and Trex Enhance railing. Its Trex Seclusions composite fencing product is offered through two specialty distributors.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Trex Company Ranked #2 in Newsweek's Most Trustworthy Companies in America 2026
- Customer Trust Recognition: Trex Company has been ranked #2 in the Construction category of Newsweek's Most Trustworthy Companies in America 2026, highlighting its strong trust among customers, employees, and investors, which further solidifies its leadership in the wood-alternative composite market.
- Ongoing Commitment to Responsibility: Being named America's Most Trusted® Decking Brand for six consecutive years reflects Trex's continuous efforts in delivering high-quality products and maintaining strong stakeholder relationships, enhancing its competitive edge in the market.
- Unique Evaluation Criteria: The ranking is based on an independent survey of 25,000 U.S. residents, with over 101,000 evaluations of companies, where Trex excelled across customer, investor, and employee trust dimensions, showcasing its outstanding performance in the industry.
- Strategic Development Vision: Trex is committed to earning stakeholder trust through continuous innovation and accountability, aiming to maintain its leadership in sustainable development and high-performance products, driving long-term growth for the company.
See More
Analyzing the Investment Potential of TREX Stock
- Market Rebound: As of March 19, TREX shares were trading at $36.78, having rebounded 20% year-to-date, reflecting optimism around U.S. construction and potential housing initiatives under Trump, indicating a compelling cyclical investment opportunity for 2026.
- Valuation Low: TREX's P/E ratio stands at 21x, 30 points below 2021 levels, with an EV/EBITDA of 12.5x, showcasing the company's competitive edge and profitability despite facing short-term challenges, highlighting its long-term investment value.
- Market Share Growth: Benefiting from a long-term trend towards outdoor living spaces, TREX experiences annual market share expansion of 1-2 percentage points, indicating sustained demand for its wood-alternative products and further solidifying its market position.
- Peer Comparison: Compared to Azek's acquisition by James Hardie at approximately 20x EV/EBITDA, TREX's discounted valuation suggests significant upside potential, attracting investor interest in its future growth prospects.
See More
Q4 Earnings Surprise May Provide Trex Stock with a Route to Recovery
Strong Earnings Report: Trex Company Inc. reported strong earnings, exceeding market expectations with a revenue of $161.13 million, which is 11.5% higher than estimates, indicating solid demand for their innovative wood-alternative decking products.
Leadership Change: The company announced the retirement of President and CEO Bryan Fairbanks, effective April 28, with Adam D. Zambanni set to replace him, which has raised investor confidence despite potential concerns over leadership transitions.
Future Growth Prospects: Trex's management remains optimistic about future growth, projecting revenues between $1.185 billion and $1.230 billion for 2026, driven by ongoing product innovation and a strong pipeline of new products.
Market Position and Consumer Demand: Trex's stock trades below its consensus price target, and analysts suggest that growth in consumer confidence and spending on outdoor living projects could positively impact the company's performance in the second half of the year.
See More
Masterton Capital Management Reduces Trex Holdings
- Share Reduction Details: Masterton Capital Management sold 107,400 shares of Trex in Q4 2025 for approximately $4.34 million, indicating a reduced confidence in Trex as its stake dropped from 4.4% to 1.17% of total AUM.
- Value of Holdings: By the end of Q4 2025, Masterton's Trex holdings were valued at $1.68 million, reflecting a significant decrease in investment that may influence future investment strategies.
- Market Performance Analysis: Trex's stock price has declined by 36.6% over the past year, closing at $42.35 on February 17, 2026, underperforming the S&P 500 by 49 percentage points, highlighting market concerns about its outlook.
- Financial Performance Overview: Trex's Q4 earnings exceeded analyst expectations, and management raised future sales guidance, indicating strong performance in new product sales, despite ongoing challenges in the macroeconomic environment.
See More
Trex Reports Q4 2025 Earnings with Strong EPS Beat
- Earnings Beat: Trex's Q4 2025 non-GAAP EPS of $0.04 exceeded expectations by $0.05, demonstrating the company's resilience in a challenging market environment.
- Revenue Performance: Despite a 4.2% year-over-year decline, Trex reported Q4 revenue of $161 million, surpassing estimates by $16.62 million, indicating the company's ability to achieve revenue growth even in adversity.
- Annual Financial Highlights: For the full year 2025, Trex achieved net sales of $1.2 billion, with gross profit of $460 million and adjusted gross profit of $469 million, reflecting ongoing efforts in cost control and profitability.
- Net Income and EBITDA: Trex reported net income of $190 million with diluted EPS of $1.78, while adjusted net income reached $202 million with adjusted diluted EPS of $1.88, and adjusted EBITDA stood at $336 million, showcasing strong profitability metrics.
See More
Wasatch Advisors Reduces Stake in Trex Company
- Stake Reduction: Wasatch Advisors sold 1,563,974 shares of Trex Company in Q4, with an estimated transaction value of $63.26 million, reflecting a cautious stance amid market volatility.
- Decline in Position Value: Post-transaction, Wasatch's position in Trex decreased to 3,601,463 shares valued at approximately $126.34 million, a drop of $140.56 million, indicating significant market pressure.
- Performance and Market Reaction: Trex reported Q3 net sales of $285 million, up 22% year-over-year, but management lowered full-year revenue guidance to $1.15 billion to $1.16 billion, contributing to a stock price decline of over 36% in the past year.
- Investor Considerations: While Trex remains a leader in composite decking and has authorized a $50 million buyback, macroeconomic factors are impacting investor confidence, necessitating careful evaluation of its investment potential.
See More
Trex Company Ranked #2 in Newsweek's Most Trustworthy Companies in America 2026
- Customer Trust Recognition: Trex Company has been ranked #2 in the Construction category of Newsweek's Most Trustworthy Companies in America 2026, highlighting its strong trust among customers, employees, and investors, which further solidifies its leadership in the wood-alternative composite market.
- Ongoing Commitment to Responsibility: Being named America's Most Trusted® Decking Brand for six consecutive years reflects Trex's continuous efforts in delivering high-quality products and maintaining strong stakeholder relationships, enhancing its competitive edge in the market.
- Unique Evaluation Criteria: The ranking is based on an independent survey of 25,000 U.S. residents, with over 101,000 evaluations of companies, where Trex excelled across customer, investor, and employee trust dimensions, showcasing its outstanding performance in the industry.
- Strategic Development Vision: Trex is committed to earning stakeholder trust through continuous innovation and accountability, aiming to maintain its leadership in sustainable development and high-performance products, driving long-term growth for the company.
See More
Analyzing the Investment Potential of TREX Stock
- Market Rebound: As of March 19, TREX shares were trading at $36.78, having rebounded 20% year-to-date, reflecting optimism around U.S. construction and potential housing initiatives under Trump, indicating a compelling cyclical investment opportunity for 2026.
- Valuation Low: TREX's P/E ratio stands at 21x, 30 points below 2021 levels, with an EV/EBITDA of 12.5x, showcasing the company's competitive edge and profitability despite facing short-term challenges, highlighting its long-term investment value.
- Market Share Growth: Benefiting from a long-term trend towards outdoor living spaces, TREX experiences annual market share expansion of 1-2 percentage points, indicating sustained demand for its wood-alternative products and further solidifying its market position.
- Peer Comparison: Compared to Azek's acquisition by James Hardie at approximately 20x EV/EBITDA, TREX's discounted valuation suggests significant upside potential, attracting investor interest in its future growth prospects.
See More
Q4 Earnings Surprise May Provide Trex Stock with a Route to Recovery
Strong Earnings Report: Trex Company Inc. reported strong earnings, exceeding market expectations with a revenue of $161.13 million, which is 11.5% higher than estimates, indicating solid demand for their innovative wood-alternative decking products.
Leadership Change: The company announced the retirement of President and CEO Bryan Fairbanks, effective April 28, with Adam D. Zambanni set to replace him, which has raised investor confidence despite potential concerns over leadership transitions.
Future Growth Prospects: Trex's management remains optimistic about future growth, projecting revenues between $1.185 billion and $1.230 billion for 2026, driven by ongoing product innovation and a strong pipeline of new products.
Market Position and Consumer Demand: Trex's stock trades below its consensus price target, and analysts suggest that growth in consumer confidence and spending on outdoor living projects could positively impact the company's performance in the second half of the year.
See More
Masterton Capital Management Reduces Trex Holdings
- Share Reduction Details: Masterton Capital Management sold 107,400 shares of Trex in Q4 2025 for approximately $4.34 million, indicating a reduced confidence in Trex as its stake dropped from 4.4% to 1.17% of total AUM.
- Value of Holdings: By the end of Q4 2025, Masterton's Trex holdings were valued at $1.68 million, reflecting a significant decrease in investment that may influence future investment strategies.
- Market Performance Analysis: Trex's stock price has declined by 36.6% over the past year, closing at $42.35 on February 17, 2026, underperforming the S&P 500 by 49 percentage points, highlighting market concerns about its outlook.
- Financial Performance Overview: Trex's Q4 earnings exceeded analyst expectations, and management raised future sales guidance, indicating strong performance in new product sales, despite ongoing challenges in the macroeconomic environment.
See More
Trex Reports Q4 2025 Earnings with Strong EPS Beat
- Earnings Beat: Trex's Q4 2025 non-GAAP EPS of $0.04 exceeded expectations by $0.05, demonstrating the company's resilience in a challenging market environment.
- Revenue Performance: Despite a 4.2% year-over-year decline, Trex reported Q4 revenue of $161 million, surpassing estimates by $16.62 million, indicating the company's ability to achieve revenue growth even in adversity.
- Annual Financial Highlights: For the full year 2025, Trex achieved net sales of $1.2 billion, with gross profit of $460 million and adjusted gross profit of $469 million, reflecting ongoing efforts in cost control and profitability.
- Net Income and EBITDA: Trex reported net income of $190 million with diluted EPS of $1.78, while adjusted net income reached $202 million with adjusted diluted EPS of $1.88, and adjusted EBITDA stood at $336 million, showcasing strong profitability metrics.
See More
Wasatch Advisors Reduces Stake in Trex Company
- Stake Reduction: Wasatch Advisors sold 1,563,974 shares of Trex Company in Q4, with an estimated transaction value of $63.26 million, reflecting a cautious stance amid market volatility.
- Decline in Position Value: Post-transaction, Wasatch's position in Trex decreased to 3,601,463 shares valued at approximately $126.34 million, a drop of $140.56 million, indicating significant market pressure.
- Performance and Market Reaction: Trex reported Q3 net sales of $285 million, up 22% year-over-year, but management lowered full-year revenue guidance to $1.15 billion to $1.16 billion, contributing to a stock price decline of over 36% in the past year.
- Investor Considerations: While Trex remains a leader in composite decking and has authorized a $50 million buyback, macroeconomic factors are impacting investor confidence, necessitating careful evaluation of its investment potential.
See More
