Wasatch Advisors reduced its position in Trex Company (TREX 2.15%) by 1,563,974 shares in the fourth quarter, an estimated $63.26 million trade based on quarterly average pricing, according to a February 12, 2026, SEC filing.
What happened
According to a recent SEC filing dated February 12, 2026, Wasatch Advisors decreased its holding in Trex Company by 1,563,974 shares during the fourth quarter. The estimated value of shares sold was approximately $63.26 million, calculated using the quarter's average closing price. The quarter-end value of the fund's Trex position declined by $140.56 million, a figure that includes both trading activity and market price changes.
What else to know
- After the sale, Trex Company accounts for 0.75% of Wasatch Advisors' 13F reportable assets.
- Top holdings after the filing:
- NASDAQ: HQY: $603.68 million (3.6% of AUM)
- NASDAQ: ENSG: $494.48 million (2.9% of AUM)
- NYSE: RBC: $449.93 million (2.7% of AUM)
- NASDAQ: NVMI: $439.43 million (2.6% of AUM)
- NYSE: FOUR: $426.87 million (2.5% of AUM)
- As of February 12, 2026, shares of Trex Company were priced at $42.65, down 36.6% over the past year and well underperforming the S&P 500’s roughly 13% gain in the same period.
Company overview
| Metric | Value |
|---|---|
| Price (as of market close 2026-02-12) | $42.65 |
| Market capitalization | $4.57 billion |
| Revenue (TTM) | $1.18 billion |
| Net income (TTM) | $197.88 million |
Company snapshot
- Trex Company offers composite decking, railing, fencing, lighting, and outdoor living products, with key brands including Trex Transcend, Trex Select, and Trex Enhance.
- The firm generates revenue through manufacturing and distributing outdoor products, complemented by licensing agreements for branded accessories and solutions.
- It serves residential and commercial customers primarily in the United States via wholesale distributors, retail lumber dealers, and major home improvement retailers.
Trex Company, Inc. is a leading manufacturer of wood-alternative decking and outdoor living products. The company leverages a vertically integrated model, combining proprietary manufacturing with a broad distribution network to maintain strong brand recognition and pricing power. Its focus on innovative, low-maintenance materials and diverse channel partnerships underpins its competitive position in the outdoor building materials market.
What this transaction means for investors
Cyclical pressure in housing always tests conviction, and that’s often exactly when portfolio managers start trimming exposure to names tied to repair and remodel demand. Trex recently reported third-quarter net sales of $285 million, up 22% year over year, with gross margin expanding to 40.5% and adjusted EBITDA reaching $90 million.
At the same time, however, management revised full-year revenue guidance down to $1.15 billion to $1.16 billion and adjusted EBITDA margin to 28% to 28.5% amid softer repair and remodel trends. That context helps explain why the stock has fallen more than 36% over the past year.
Within a portfolio led by healthcare services, software, and payments names, Trex can be one of the more economically sensitive holdings, and reducing it to 0.75% of assets suggests a tactical rebalance rather than a wholesale rejection.
For long-term investors, the real question is share gains versus macro drag. Trex still leads in composite decking, continues to invest in branding and R&D, and authorized a $50 million buyback. If housing stabilizes, operating leverage can work both ways. The firm is set to report fourth-quarter earnings later on Tuesday.
