Key Points

Fully divested 302,462 shares in Trex Company; transaction valued at roughly $12.17 million using first-quarter average price
Quarter-end holdings value dropped $10.61 million due to the sale and market fluctuations
Equates to a 3.64% shift in 13F-reported assets under management
Fund now owns zero Trex shares, with position value at $0
Prior quarter, the stake accounted for 3.0% of the fund's total AUM

On May 11, 2026, Montanaro Asset Management Ltd revealed in a U.S. Securities and Exchange Commission filing that it completely sold its position in Trex Company (NYSE:TREX), a move valued at about $12.17 million based on the first quarter's average closing price.

What Happened

Montanaro Asset Management Ltd detailed in an SEC filing dated May 11, 2026, the sale of its full 302,462-share holding in Trex Company. Calculated at the unadjusted average closing price for Q1 2026, the deal totaled $12.17 million. The investment firm has now fully exited, holding no remaining shares or value in the stock at quarter-end.

What Else to Know

The firm has eliminated its Trex Company exposure entirely, reducing it to zero percent of 13F assets under management. Leading holdings post-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)

Trex Company stock closed at $40.20 on May 10, 2026, reflecting a 31.05% decline over the past year - trailing 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

Manufactures composite decking, railing, fencing, and outdoor living products for residential and commercial use.
Derives most revenue from sales to wholesale distributors, retail lumber outlets, and big-box home improvement stores, bolstered by licensing for branded add-ons.
Caters to homeowners, contractors, builders, and businesses nationwide, targeting residential remodels and new builds.

Trex Company leads in wood-alternative decking and outdoor products, boasting over $1.17 billion in trailing twelve-month revenue. Its robust brand, wide distribution, and emphasis on innovation plus sustainability solidify its edge in construction and home improvement.

What This Transaction Means for Investors

London-headquartered Montanaro Asset Management disclosed offloading around $12.2 million in Trex shares during Q1 2026 (ended March 31). Investors should note these insights. Trex stock has trended downward in recent years. From early 2024, shares dropped about 52%, yielding a compound annual growth rate of -26.9%. Contrast that with the S&P 500's 60% total return and 21.9% CAGR over the same span - highlighting Trex's sharp underperformance. Challenges abound: The home repair and remodel sector stagnates amid elevated costs for essentials like food and energy. Elevated interest rates versus decade averages also deter homeowners from major upgrades. Yet, bargain hunters may eye value. Trex trades at a 3.6x price-to-sales ratio, half its 10-year norm of 6.7x.

The views expressed are those of the author.