Investment Firm Sells $12.2 Million Worth of Materials Stock, According to Latest SEC Filing
Key Points
Sold all 302,462 shares of Trex Company; estimated trade size was $12.17 million based on quarterly average price
Quarter-end position value declined by $10.61 million, reflecting both share sale and price changes
Represents a 3.64% change in 13F reportable assets under management
Post-trade, fund holds zero shares with a $0 position value in Trex Company
The position was previously 3.0% of the fund's AUM as of the prior quarter
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On May 11, 2026, Montanaro Asset Management Ltd disclosed in a U.S. Securities and Exchange Commission filing that it sold its entire stake in Trex Company (NYSE:TREX), an estimated $12.17 million transaction based on the quarterly average price.
What happened
According to a U.S. Securities and Exchange Commission (SEC) filing dated May 11, 2026, Montanaro Asset Management Ltd reported selling its entire holding of 302,462 Trex Company shares. The estimated transaction value was $12.17 million, based on the average unadjusted closing price for the first quarter of 2026. The fund exited the position completely, with no Trex Company shares or value remaining at quarter’s end.
What else to know
Montanaro Asset Management Ltd fully exited Trex Company; the position now represents none of the 13F AUM.
Top holdings after the filing:
- NASDAQ:NVMI: $20.90 million (6.25% of AUM)
- NASDAQ:TECH: $17.82 million (5.33% of AUM)
- NASDAQ:BCPC: $16.73 million (5.00% of AUM)
- NYSE:HLI: $14.11 million (4.22% of AUM)
- NASDAQ:BSY: $14.06 million (4.20% of AUM)
As of May 10, 2026, Trex Company shares were priced at $40.20, down 31.05% over the past year, underperforming the S&P 500 by 61.68 percentage points.
Company overview
| Metric | Value |
|---|---|
| Price (as of market close May 8, 2026) | $40.20 |
| Market Capitalization | $4.13 billion |
| Revenue (TTM) | $1.18 billion |
| Net Income (TTM) | $191.38 million |
Company snapshot
- Produces composite decking, railing systems, fencing, and outdoor living products for both residential and commercial applications.
- Generates revenue primarily through product sales to wholesale distributors, retail lumber dealers, and major home improvement retailers, supported by licensing agreements for branded accessories.
- Serves homeowners, contractors, builders, and commercial clients across the United States, with a focus on the residential remodeling and new construction markets.
Trex Company is a leading manufacturer of wood-alternative decking and outdoor living solutions, operating at scale with over $1.17 billion in trailing twelve-month revenue. The company leverages a strong brand and extensive distribution network to maintain a competitive position in the construction and home improvement sector. Its focus on innovation and sustainability underpins its market leadership in composite decking products.
What this transaction means for investors
Montanaro Asset Management, a London-based investment firm, recently disclosed selling approximately $12.2 million of Trex stock during the first quarter (the three months ended March 31, 2026). Here are some key takeaways for investors.
First, Trex shares have endured a steady decline over the last few years. Since the start of 2024, Trex shares have fallen by about 52%, for a compound annual growth rate of -26.9%. The benchmark S&P 500 index, meanwhile, has generated a total return of 60% over the same period, with a CAGR of 21.9%.In other words, Trex shares have severely underperformed the market during this period.
The company faces several notable headwinds. The overall repair and remodel market for new homes remains stagnant, as consumers continue to face higher costs for necessities like food and energy. In addition, interest rates remain above the average levels recorded over the last 10 years, leading many homeowners to be unwilling to take on new projects to improve their home’s value.
All that said, value-minded investors might see opportunity in Trex shares. The company’s stock currently trades at a price-to-sales (P/S) ratio of 3.6x. That’s well below its 10-year average of 6.7x.
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Jake Lerch has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Houlihan Lokey and Trex. The Motley Fool recommends Bentley Systems. The Motley Fool has a disclosure policy.
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