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24x7Report > Blog > Finance > Madison Asset Management Liquidates Its $98 Million Trex Position
Finance

Madison Asset Management Liquidates Its $98 Million Trex Position

Last updated: 2026/02/07 at 10:07 PM
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Madison Asset Management Liquidates Its $98 Million Trex Position
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According to an SEC filing dated Feb. 4, 2026, Madison Asset Management, LLC, sold all 1,893,081 shares of Trex (NYSE:TREX) during the fourth quarter of 2025. The estimated transaction value was $97.82 million, calculated using average quarterly pricing. The quarter-end value of the fund’s Trex position decreased by $97.82 million, reflecting both the full share sale and any price movements during the period.

Madison Asset Management fully sold out of Trex.

As of Feb. 5, 2026, Trex shares were priced at $43.02, down 38.6% over the prior year, underperforming the S&P 500 by 52 percentage points.

Metric

Value

Revenue (TTM)

$1.18 billion

Net income (TTM)

$197.88 million

Market capitalization

$4.72 billion

Price (as of market close Feb. 5, 2026)

$43.02

Trex:

  • Manufactures and distributes composite decking, railing, fencing, and outdoor living products, including Trex Transcend, Trex Select, Trex Enhance, and related accessories.

  • Operates a product-based business model, generating revenue primarily through wholesale distribution, retail lumber dealers, and direct sales to commercial and residential markets.

  • has main customer segments, including residential homeowners, commercial developers, and retail partners such as Home Depot and Lowe’s.

Trex is a leading provider of composite decking and outdoor living solutions, serving both residential and commercial markets across the United States. The company leverages a diversified distribution network and strong retail partnerships to maintain its market presence. With a focus on innovative, low-maintenance products, Trex differentiates itself through brand recognition and a broad portfolio tailored to outdoor construction needs.

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Less than a year after opening its position in composite decking leader Trex, Madison Asset Management closed its position in the cyclical company. Tied to the housing market (and, to a large degree, consumer confidence), Trex has seen its share price go up and to the right over the long term, but has experienced periods of volatility on shorter time frames. While it is impossible to know exactly why Madison decided now was the right now to sell Trex, they simply might’ve been hoping for a quick upswing that didn’t materialize.

However, I think Trex remains a promising company to investors laser-focused on the long term — think five to ten years or more. Even following its dramatic drawdown in recent years, Trex has quadrupled the total returns of the S&P 500 since its 1999 IPO. Furthermore, while the housing market remains in flux, Trex grew sales by 25% in its latest quarter and observed a 50% increase in requests for samples and visits to its website. Though management expects sales to be flat overall in 2025, Trex remains the No. 1 player in its composite products niche. Generating 25% of its Q3 sales from new products, the company’s innovation engine seems to be humming along just fine, as well.

Trading with an EV-to-EBITDA ratio of just 15 — compared to its decade-long average of 23 — Trex remains reasonably valued, considering that it grew sales by 12% annually over the last ten years. When a turnaround will be in store for the broader housing market (and Trex) is anyone’s guess. But Trex remains the top dog in its niche, and I’d rather add at today’s fair price than sell.

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Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $443,299!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,136,601!*

Now, it’s worth noting Stock Advisor’s total average return is 914% — a market-crushing outperformance compared to 195% for the S&P 500. Don’t miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.

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*Stock Advisor returns as of February 7, 2026.

Josh Kohn-Lindquist has positions in Alphabet and Trex. The Motley Fool has positions in and recommends Alphabet, Amphenol, Paccar, and Trex. The Motley Fool has a disclosure policy.

Madison Asset Management Liquidates Its $98 Million Trex Position was originally published by The Motley Fool

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TAGGED: asset, Liquidates, Madison, management, Million, position, TRex

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