Trex Stock Down 36% as Wasatch Sells Off $63 Million in Shares

4 weeks ago 21

Jonathan Ponciano, The Motley Fool

Tue, February 24, 2026 astatine 11:42 AM CST 4 min read

Wasatch Advisors reduced its presumption successful Trex Company (NYSE:TREX) by 1,563,974 shares successful the 4th quarter, an estimated $63.26 cardinal commercialized based connected quarterly mean pricing, according to a February 12, 2026, SEC filing.

According to a recent SEC filing dated February 12, 2026, Wasatch Advisors decreased its holding successful Trex Company by 1,563,974 shares during the 4th quarter. The estimated worth of shares sold was astir $63.26 million, calculated utilizing the quarter's mean closing price. The quarter-end worth of the fund's Trex presumption declined by $140.56 million, a fig that includes some trading enactment and marketplace terms changes.

After the sale, Trex Company accounts for 0.75% of Wasatch Advisors' 13F reportable assets.
Top holdings aft the filing:
- NASDAQ: HQY: $603.68 cardinal (3.6% of AUM)
- NASDAQ: ENSG: $494.48 cardinal (2.9% of AUM)
- NYSE: RBC: $449.93 cardinal (2.7% of AUM)
- NASDAQ: NVMI: $439.43 cardinal (2.6% of AUM)
- NYSE: FOUR: $426.87 cardinal (2.5% of AUM)
As of February 12, 2026, shares of Trex Company were priced astatine $42.65, down 36.6% implicit the past twelvemonth and good underperforming the S&P 500’s astir 13% summation successful the aforesaid period.

Metric

Value

Price (as of marketplace adjacent 2026-02-12)	$42.65
Market capitalization	$4.57 billion
Revenue (TTM)	$1.18 billion
Net income (TTM)	$197.88 million

Trex Company offers composite decking, railing, fencing, lighting, and outdoor surviving products, with cardinal brands including Trex Transcend, Trex Select, and Trex Enhance.
The steadfast generates gross done manufacturing and distributing outdoor products, complemented by licensing agreements for branded accessories and solutions.
It serves residential and commercialized customers chiefly successful the United States via wholesale distributors, retail lumber dealers, and large location betterment retailers.

Trex Company, Inc. is simply a starring shaper of wood-alternative decking and outdoor surviving products. The institution leverages a vertically integrated model, combining proprietary manufacturing with a wide organisation web to support beardown marque designation and pricing power. Its absorption connected innovative, low-maintenance materials and divers transmission partnerships underpins its competitory presumption successful the outdoor gathering materials market.

Cyclical unit successful lodging ever tests conviction, and that’s often precisely erstwhile portfolio managers commencement trimming vulnerability to names tied to repair and remodel demand. Trex precocious reported third-quarter nett income of $285 million, up 22% twelvemonth implicit year, with gross borderline expanding to 40.5% and adjusted EBITDA reaching $90 million.

At the aforesaid time, however, absorption revised full-year gross guidance down to $1.15 cardinal to $1.16 cardinal and adjusted EBITDA borderline to 28% to 28.5% amid softer repair and remodel trends. That discourse helps explicate wherefore the banal has fallen much than 36% implicit the past year.

Within a portfolio led by healthcare services, software, and payments names, Trex tin beryllium 1 of the much economically delicate holdings, and reducing it to 0.75% of assets suggests a tactical rebalance alternatively than a wholesale rejection.

For semipermanent investors, the existent question is stock gains versus macro drag. Trex inactive leads successful composite decking, continues to put successful branding and R&D, and authorized a $50 cardinal buyback. If lodging stabilizes, operating leverage tin enactment some ways. The steadfast is acceptable to study fourth-quarter net aboriginal connected Tuesday.

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