Madison Asset Management Fully Exits Trex Holdings
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
Should l Buy TREX?
Source: Fool
- Complete Exit: Madison Asset Management sold all 1,893,081 shares of Trex during Q4 2025, with an estimated transaction value of $97.82 million, reflecting a significant decline in the fund's Trex position and indicating reduced market confidence in the company.
- Poor Stock Performance: As of February 5, 2026, Trex shares were priced at $43.02, down 38.6% year-over-year and underperforming the S&P 500 by 52 percentage points, highlighting the company's vulnerability in the current economic climate.
- Sales Growth Potential: Despite challenges, Trex reported a 25% sales increase in its latest quarter, with new products accounting for 25% of sales, demonstrating its innovation capabilities and potential market demand that may attract long-term investors.
- Reasonable Valuation: Trex's EV-to-EBITDA ratio stands at 15, below its decade-long average of 23, suggesting that, given its historical annual sales growth of 12%, the current stock price remains attractive and could present a good buying opportunity for investors.
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Analyst Views on TREX
Wall Street analysts forecast TREX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TREX is 43.56 USD with a low forecast of 32.00 USD and a high forecast of 57.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
17 Analyst Rating
8 Buy
7 Hold
2 Sell
Moderate Buy
Current: 43.020
Low
32.00
Averages
43.56
High
57.00
Current: 43.020
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.
Madison Asset Management Fully Exits Trex Holdings
- Complete Exit: Madison Asset Management sold all 1,893,081 shares of Trex during Q4 2025, with an estimated transaction value of $97.82 million, reflecting a significant decline in the fund's Trex position and indicating reduced market confidence in the company.
- Poor Stock Performance: As of February 5, 2026, Trex shares were priced at $43.02, down 38.6% year-over-year and underperforming the S&P 500 by 52 percentage points, highlighting the company's vulnerability in the current economic climate.
- Sales Growth Potential: Despite challenges, Trex reported a 25% sales increase in its latest quarter, with new products accounting for 25% of sales, demonstrating its innovation capabilities and potential market demand that may attract long-term investors.
- Reasonable Valuation: Trex's EV-to-EBITDA ratio stands at 15, below its decade-long average of 23, suggesting that, given its historical annual sales growth of 12%, the current stock price remains attractive and could present a good buying opportunity for investors.
See More
Madison Asset Management Liquidates Trex Position Worth $98 Million
- Position Liquidation: Madison Asset Management sold all 1,893,081 shares of Trex in Q4 2025 for an estimated $97.82 million, indicating a significant decline in the fund's Trex position and reflecting a pessimistic outlook on the company's future performance.
- Poor Market Performance: As of February 5, 2026, Trex shares were priced at $43.02, down 38.6% year-over-year, significantly underperforming the S&P 500 by 52 percentage points, suggesting serious challenges to its competitive position in the market.
- Sales Growth Potential: Despite market volatility, Trex achieved a 25% sales increase in its latest quarter, with new products accounting for 25% of sales, indicating strong innovation capabilities and demand that could lay the groundwork for future recovery.
- Attractive Valuation: Trex's EV-to-EBITDA ratio stands at 15, below its decade-long average of 23, suggesting that the current stock price remains attractive in light of its long-term growth potential, which may draw interest from long-term investors.
See More
Trex Company to Release Q4 2025 Earnings on February 24, 2026
- Earnings Release Schedule: Trex Company will issue its Q4 2025 earnings report on February 24, 2026, after the U.S. market closes, reflecting its ongoing leadership in the wood-alternative market.
- Conference Call Invitation: Senior management will host a conference call on the same day at 4:30 PM ET, where participants must dial in early to express their intent to join, ensuring investors receive the latest updates directly from the company.
- Webcast Availability: The conference call will be available via live webcast on Trex's Investor Relations page, and for those unable to listen live, an audio replay will be accessible within 24 hours post-call, promoting widespread information dissemination.
- Industry Leadership: Over the past 30 years, Trex has continuously innovated to become the world's largest manufacturer of wood-alternative decking and residential railing, solidifying its market position through a robust distribution network and sustainable products.
See More
Trex Company (TREX) Under Investigation for Sales Practices, 2025 Growth Slashed to 0%
- Investigation Background: Hagens Berman is investigating Trex Company for potential undisclosed sales practices, possibly inflating sales figures by overstocking its 'pro channel' partners, leading to a downward revision of 2025 sales growth expectations from +7% to 0%.
- Stock Impact: Trex's stock plummeted 31% on November 5, 2025, resulting in a market cap loss of approximately $1.5 billion, as its Q3 report revealed net sales of $285 million, falling short of market expectations and indicating softening demand.
- Production Strategy Scrutiny: Trex claimed its 'level-loading' production strategy would reduce inventory volatility; however, the investigation will focus on whether this strategy masked a decline in end-user demand, adversely affecting financial performance.
- Investor Call to Action: Hagens Berman encourages investors who suffered losses to reach out for legal support and invites individuals with relevant information to assist in the investigation, highlighting the importance of transparency in corporate practices.
See More
Trex Company Faces Securities Investigation as Shares Plunge 31%
- Financial Performance Decline: Trex reported Q3 2025 net sales of $285 million, falling 5% below the midpoint of its guidance and showing a sequential decline of approximately 26%, indicating significant challenges in sales growth and inventory management.
- Profitability Pressure: The company experienced a 12% decline in net income per share for the nine months ended September 30, 2025, reflecting profitability pressures amid weak market demand and inventory adjustments, which could impact future investor confidence.
- Sales Guidance Revision: Trex revised its 2025 sales growth forecast down to nearly 0% and anticipates a “muted” fourth quarter, signaling a pessimistic outlook on market conditions that may lead to further stock price volatility.
- Stock Price Plunge: Following the disappointing earnings report on November 4, 2025, Trex's share price plummeted from $47.04 to $32.43, a decline of 31.07%, reflecting investor disappointment in the company's future performance and a crisis of confidence in management.
See More
Trex Company (TREX) Under Investigation for Sales Practices, 2025 Growth Slashed to 0%
- Investigation Background: Hagens Berman is investigating Trex Company for potential undisclosed sales practices, which may have involved overstocking its 'pro channel' partners to artificially inflate sales figures, undermining investor confidence.
- Sales Guidance Downgrade: Trex has drastically cut its 2025 sales growth forecast from 5%-7% to nearly 0%, reflecting the ineffectiveness of its inventory management strategy and negatively impacting future performance expectations.
- Stock Price Plunge: On November 5, 2025, Trex's stock price plummeted by 31% following disappointing Q3 results, resulting in a market cap loss of approximately $1.5 billion, indicating severe market concerns regarding its financial health.
- Management Statements: Trex's management previously claimed that their 'level-loading' production strategy would reduce inventory volatility; however, the investigation suggests they may have continued pushing products into the market despite softening demand, creating a conflict between short-term targets and long-term viability.
See More
Madison Asset Management Fully Exits Trex Holdings
- Complete Exit: Madison Asset Management sold all 1,893,081 shares of Trex during Q4 2025, with an estimated transaction value of $97.82 million, reflecting a significant decline in the fund's Trex position and indicating reduced market confidence in the company.
- Poor Stock Performance: As of February 5, 2026, Trex shares were priced at $43.02, down 38.6% year-over-year and underperforming the S&P 500 by 52 percentage points, highlighting the company's vulnerability in the current economic climate.
- Sales Growth Potential: Despite challenges, Trex reported a 25% sales increase in its latest quarter, with new products accounting for 25% of sales, demonstrating its innovation capabilities and potential market demand that may attract long-term investors.
- Reasonable Valuation: Trex's EV-to-EBITDA ratio stands at 15, below its decade-long average of 23, suggesting that, given its historical annual sales growth of 12%, the current stock price remains attractive and could present a good buying opportunity for investors.
See More
Madison Asset Management Liquidates Trex Position Worth $98 Million
- Position Liquidation: Madison Asset Management sold all 1,893,081 shares of Trex in Q4 2025 for an estimated $97.82 million, indicating a significant decline in the fund's Trex position and reflecting a pessimistic outlook on the company's future performance.
- Poor Market Performance: As of February 5, 2026, Trex shares were priced at $43.02, down 38.6% year-over-year, significantly underperforming the S&P 500 by 52 percentage points, suggesting serious challenges to its competitive position in the market.
- Sales Growth Potential: Despite market volatility, Trex achieved a 25% sales increase in its latest quarter, with new products accounting for 25% of sales, indicating strong innovation capabilities and demand that could lay the groundwork for future recovery.
- Attractive Valuation: Trex's EV-to-EBITDA ratio stands at 15, below its decade-long average of 23, suggesting that the current stock price remains attractive in light of its long-term growth potential, which may draw interest from long-term investors.
See More
Trex Company to Release Q4 2025 Earnings on February 24, 2026
- Earnings Release Schedule: Trex Company will issue its Q4 2025 earnings report on February 24, 2026, after the U.S. market closes, reflecting its ongoing leadership in the wood-alternative market.
- Conference Call Invitation: Senior management will host a conference call on the same day at 4:30 PM ET, where participants must dial in early to express their intent to join, ensuring investors receive the latest updates directly from the company.
- Webcast Availability: The conference call will be available via live webcast on Trex's Investor Relations page, and for those unable to listen live, an audio replay will be accessible within 24 hours post-call, promoting widespread information dissemination.
- Industry Leadership: Over the past 30 years, Trex has continuously innovated to become the world's largest manufacturer of wood-alternative decking and residential railing, solidifying its market position through a robust distribution network and sustainable products.
See More
Trex Company (TREX) Under Investigation for Sales Practices, 2025 Growth Slashed to 0%
- Investigation Background: Hagens Berman is investigating Trex Company for potential undisclosed sales practices, possibly inflating sales figures by overstocking its 'pro channel' partners, leading to a downward revision of 2025 sales growth expectations from +7% to 0%.
- Stock Impact: Trex's stock plummeted 31% on November 5, 2025, resulting in a market cap loss of approximately $1.5 billion, as its Q3 report revealed net sales of $285 million, falling short of market expectations and indicating softening demand.
- Production Strategy Scrutiny: Trex claimed its 'level-loading' production strategy would reduce inventory volatility; however, the investigation will focus on whether this strategy masked a decline in end-user demand, adversely affecting financial performance.
- Investor Call to Action: Hagens Berman encourages investors who suffered losses to reach out for legal support and invites individuals with relevant information to assist in the investigation, highlighting the importance of transparency in corporate practices.
See More
Trex Company Faces Securities Investigation as Shares Plunge 31%
- Financial Performance Decline: Trex reported Q3 2025 net sales of $285 million, falling 5% below the midpoint of its guidance and showing a sequential decline of approximately 26%, indicating significant challenges in sales growth and inventory management.
- Profitability Pressure: The company experienced a 12% decline in net income per share for the nine months ended September 30, 2025, reflecting profitability pressures amid weak market demand and inventory adjustments, which could impact future investor confidence.
- Sales Guidance Revision: Trex revised its 2025 sales growth forecast down to nearly 0% and anticipates a “muted” fourth quarter, signaling a pessimistic outlook on market conditions that may lead to further stock price volatility.
- Stock Price Plunge: Following the disappointing earnings report on November 4, 2025, Trex's share price plummeted from $47.04 to $32.43, a decline of 31.07%, reflecting investor disappointment in the company's future performance and a crisis of confidence in management.
See More
Trex Company (TREX) Under Investigation for Sales Practices, 2025 Growth Slashed to 0%
- Investigation Background: Hagens Berman is investigating Trex Company for potential undisclosed sales practices, which may have involved overstocking its 'pro channel' partners to artificially inflate sales figures, undermining investor confidence.
- Sales Guidance Downgrade: Trex has drastically cut its 2025 sales growth forecast from 5%-7% to nearly 0%, reflecting the ineffectiveness of its inventory management strategy and negatively impacting future performance expectations.
- Stock Price Plunge: On November 5, 2025, Trex's stock price plummeted by 31% following disappointing Q3 results, resulting in a market cap loss of approximately $1.5 billion, indicating severe market concerns regarding its financial health.
- Management Statements: Trex's management previously claimed that their 'level-loading' production strategy would reduce inventory volatility; however, the investigation suggests they may have continued pushing products into the market despite softening demand, creating a conflict between short-term targets and long-term viability.
See More
