Item 5. Market for Registrant’s Common Equity
Item 5.
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
Market for Common Stock
Our common stock has been listed on the New York Stock Exchange (NYSE) since April 8, 1999. Effective November 23, 2009, our common stock is listed under the symbol “TREX”.
Dividend Policy
We have never paid cash dividends on our common stock and our credit agreement places limitations on our ability to pay cash dividends. We intend to retain future earnings to finance the development and expansion of our business or the repurchase of our common shares and, therefore, have no current intention to pay cash dividends. However, we reconsider our dividend policy on a regular basis and may determine to pay dividends in the future.
Issuer Purchases of Equity Securities
The following table provides information relating to the purchases of our common stock during the three months ended December 31, 2021 in accordance with Item 703 of Regulation S-K:
Period
(a)
Total Number of
Shares (or Units)
Purchased (1)
(b)
Average Price Paid
per Share (or Unit)
($)
(c)
Total Number of
Shares (or Units)
Purchased as Part of
Publicly Announced
Plans or Programs (2)
(d)
Maximum number of
Shares (or Units) that
May Yet Be
Purchased Under the
Plan or Program
October 1, 2021 – October 31, 2021
232,385
$
93.11
232,385
7,988,123
November 1, 2021 – November 30, 2021
15,977
$
118.23
—
7,988,123
December 1, 2021 – December 31, 2021
—
$
—
—
7,988,123
Quarter ended December 31, 2021
248,362
232,385
(1)
During the three months ended December 31, 2021, 15,977 shares were withheld by, or delivered to, the Company pursuant to provisions in agreements with recipients of restricted stock granted under the Company’s 2014 Stock Incentive Plan allowing the Company to withhold, or the recipient to deliver to the Company, the number of shares having the fair value equal to tax withholding due.
(2)
On February 16, 2018, the Company’s Board of Directors authorized a common stock repurchase program of up to 11.6 million shares of the Company’s outstanding common stock (Stock Repurchase Program). The Stock Repurchase Program was publicly announced on February 21, 2018. The Company repurchased 232,385 shares of its common stock under the Stock Repurchase Program during the three months ended December 31, 2021.
Stockholder Return Performance Graph
The following graph and table show the cumulative total stockholder return on the Company’s common stock for the last five fiscal years compared to the Russell 2000 Index and the Standard and Poor’s 600 Building Products Index (S&P 600 Building Products). The graph assumes $100 was invested on December 31, 2016 in (1) the Company’s common stock, (2) the Russell 2000 Index and (3) the S&P 600 Building Products and assumes reinvestment of dividends and market capitalization weighting as of December 31, 2017, 2018, 2019, 2020 and 2021.
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Comparison of Cumulative Total Return
Among Trex Company, Inc., Russell 2000 Index, and S&P 600 Building Products Index
12/31/2016
12/31/2017
12/31/2018
12/31/2019
12/31/2020
12/31/2021
Trex Company, Inc.
$
100.00
$
168.32
$
184.35
$
279.13
$
520.00
$
838.70
Russell 2000 Index
$
100.00
$
114.65
$
102.03
$
128.07
$
153.64
$
176.67
S&P 600 Building Products
$
100.00
$
120.22
$
95.23
$
135.41
$
170.69
$
211.99
Other Stockholder Matters
As of February 4, 2022, there were approximately 139 holders of record of our common stock, although we believe that there are a significantly larger number of beneficial owners of our common stock.
In 2021, we submitted to the NYSE in a timely manner the annual certification that our Chief Executive Officer was not aware of any violation by us of the NYSE corporate governance listing standards.
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