Information
The law firm of Kirby McInerney LLP continues its investigation on behalf of Trex Company, Inc. ("Trex" or the "Company") (NYSE:TREX) investors concerning the Company's and/or members of its senior management's possible
Original sourceAI Summary
Trex is under investigation for potential securities law violations after disappointing Q3 results led to a significant stock price drop. The company has revised its growth projections down to nearly zero, raising concerns about future performance.
Sentiment Rationale
Past instances, like other companies facing similar investigations, led to long-term downward price trends, suggesting uncertain investor sentiment.
Trading Thesis
TREX is a sell due to ongoing litigation risk and decreased growth outlook.
Market-Moving
- Disappointing Q3 results saw TREX shares decline by over 31%.
- Ongoing investigation may lead to legal actions that affect TREX's reputation.
- Management's credibility is at stake, potentially impacting future guidance.
- Investors should monitor upcoming earnings closely for further indications of performance.
Key Facts
- Trex faces investigation for potential securities law violations.
- Q3 2025 results missed expectations, causing stock drop.
- Company revised Q4 guidance down to roughly 0% growth.
- Law firm Kirby McInerney is spearheading the investigation.
Companies Mentioned
- Trex Company, Inc. (TREX): Facing a securities investigation which may affect stock performance.
- Kirby McInerney LLP (N/A): Legal firm conducting the investigation, affecting investor sentiment.
Corporate Developments
The category is 'Corporate Developments' as it deals with legal implications that could affect investors and corporate governance at Trex. Legal investigations can lead to volatility and uncertainty in stock performance, making it relevant for investors.
The law firm of Kirby McInerney LLP continues its investigation on behalf of Trex Company, Inc. ("Trex" or the "Company") (NYSE:TREX) investors concerning the Company's and/or members of its senior management's possible violation of the federal securities laws and other unlawful business practices.
[LEARN MORE ABOUT THE INVESTIGATION]
What Happened?
On August 4, 2025, Trex assured investors that "our revised inventory strategy reduces the volatility typically associated with channel stocking and de-stocking" and "by level-loading our production, we can better manage inventory cycles, enhance operational efficiencies, and reduce volatility in our quarterly results." The company also called for FY 2025 sales growth of 5% to 7%.
But after the markets closed on November 4, 2025, Trex surprised investors when it reported disappointing Q3 2025 financial results with net sales of $285 million coming in 5% below the mid-point of its guidance (significantly missing analysts' consensus estimates), a sequential decline of about 26%. The company also reported a 12% decline in net income per share for the nine months ended September 30, 2025, compared to the prior year periods. In addition, Trex said it expects a "muted" fourth quarter, explaining in part "we expect our pro channel partners to lower their inventories through the rest of the year" and revised its 2025 sales growth guidance down to roughly 0% compared to 2024. On this news, the price of Trex shares declined by $14.61 per share, or approximately 31.07%, from $47.04 per share on November 4, 2025 to close at $32.43 on November 5, 2025.
What Should I Do?
At this stage, no lawsuit has been filed. The investigation is ongoing to determine whether claims may be brought under federal securities laws.
If you purchased or otherwise acquired Trex securities, have information, or would like to learn more about this investigation, please contact Lauren Molinaro of Kirby McInerney LLP by email at investigations@kmllp.com, or fill out the contact form below, to discuss your rights or interests with respect to these matters at no cost.
[LEARN MORE ABOUT SECURITIES CLASS ACTIONS]
Kirby McInerney LLP is a New York-based plaintiffs' law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm's efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP's website.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260120232572/en/
Kirby McInerney LLP
Lauren Molinaro, Esq.
212-699-1171
https://www.kmllp.com
https://securitiesleadplaintiff.com/
investigations@kmllp.com