Investment Advisor Closes Out Position in TREX Stock, According to Latest SEC Filing
Key Points
Sold 250,000 shares of Trex Company, with an estimated transaction value of $10.06 million based on quarterly average pricing
Quarter-end position value declined by $8.83 million, reflecting both the share sale and stock price movement
This change accounted for a 3.62% shift in reportable 13F assets under management
Post-trade holding is zero shares, equivalent to $0 in value
The position previously represented 2.7% of the fund’s AUM as of the prior quarter
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On May 15, 2026, Kanen Wealth Management LLC disclosed in an SEC filing that it sold out of Trex Company (NYSE:TREX), unloading 250,000 shares in a trade estimated at $10.06 million based on the quarterly average price.
What happened
According to an SEC filing dated May 15, 2026, Kanen Wealth Management LLC sold its entire 250,000-share stake in Trex Company during the first quarter. The estimated transaction value is $10.06 million, based on average share prices within the quarter. The quarter-end position value decreased by $8.83 million, a figure that includes both the sale and movements in Trex Company’s stock price.
What else to know
This was a complete sale; Trex Company now represents 0% of the fund’s 13F reportable assets
Top holdings after the filing:
- NYSE:COMP: $46.85 million (16.8% of AUM)
- NASDAQ:ALLT: $30.99 million (11.1% of AUM)
- NYSE:BNED: $30.23 million (10.9% of AUM)
- NASDAQ:POWW: $23.50 million (8.5% of AUM)
- NASDAQ:INSE: $19.12 million (6.9% of AUM)
As of May 15, 2026, shares were priced at $37.44, down 37.6% over the past year, underperforming the S&P 500 by 62.8 percentage points
Trex Company reported trailing twelve-month revenue of $1.17 billion and net income of $190.41 million
The fund reported 36 positions and $278.05 million in 13F assets as of March 31, 2026
Company overview
| Metric | Value |
|---|---|
| Price (as of market close May 15, 2026) | $37.44 |
| Market capitalization | $3.89 billion |
| Revenue (TTM) | $1.18 billion |
| Net income (TTM) | $191.38 million |
Company snapshot
- Trex Company manufactures and distributes composite decking, railing systems, fencing, and outdoor living accessories, with key product lines including Trex Transcend, Trex Select, and Trex Enhance.
- The company generates revenue primarily through the sale of branded outdoor building products to residential and commercial markets, leveraging a combination of direct sales, wholesale distributors, retail lumber dealers, and major home improvement retailers.
- Primary customers include homeowners, builders, contractors, and commercial clients seeking durable, low-maintenance outdoor solutions in the United States.
Trex Company is a leading provider of composite decking and outdoor living products, serving both residential and commercial markets across the United States. The company leverages a multi-channel distribution strategy and strong brand recognition to maintain a competitive position in the construction materials industry. Its focus on innovation and licensing partnerships supports continued growth and product diversification.
What this transaction means for investors
Kanen Wealth Management, a Florida-based investment advisory firm, recently disclosed the sale of approximately 250,000 shares of Trex stock, valued at approximately $10.1 million, during the first quarter (the three months ended March 31, 2026). Here are some key takeaways for investors.
To begin, Trex is a home improvement stock within the industrials sector. Trex stock tends to be highly sensitive to the health of the real estate market, since many of its products fall into the repair-and-remodel market for existing homes.
Consequently, Trex stock has suffered some ups and downs over the last few years. Overall, the stock has declined by 32% over the last three years, lagging the broader market.
However, in its most recent earnings report, the company surpassed expectations, reporting quarterly revenue of $343 million. In addition, adjusted earnings per share (EPS) were $0.59/share, topping most forecasts.
Finally, the stock is trading at a price-to-sales (P/S) ratio of 3.5x, well below its 10-year average of 6.7x. This could make the stock appealing to investors seeking some exposure to the sector.
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Jake Lerch has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Trex. The Motley Fool has a disclosure policy.
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