Celestica (NYSE:CLS) Hits New 12-Month High - Should You Buy?

Key Points

• Celestica (NYSE:CLS) reached a new 12-month high at $218.20 during trading, with the last price at $214.92, showing a significant trading volume.
• Analysts have mostly positive outlooks for Celestica, with a consensus rating of "Buy" and price targets reaching up to $220.00 from Barclays.
• The company reported strong quarterly earnings with an EPS of $1.39, beating estimates and reflecting a 21% increase in revenue year-over-year.

Celestica, Inc. (NYSE:CLS - Get Free Report) TSE: CLS hit a new 52-week high during mid-day trading on Wednesday . The company traded as high as $218.20 and last traded at $214.92, with a volume of 27772 shares traded. The stock had previously closed at $213.45.

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on CLS shares. BNP Paribas raised Celestica to a "strong-buy" rating in a research report on Wednesday, June 11th. BMO Capital Markets reissued an "outperform" rating and issued a $130.00 price objective (up from $118.00) on shares of Celestica in a report on Thursday, May 22nd. Wall Street Zen raised Celestica from a "hold" rating to a "buy" rating in a report on Saturday, August 2nd. Barclays boosted their price objective on Celestica from $146.00 to $220.00 and gave the company an "overweight" rating in a report on Wednesday, July 30th. Finally, UBS Group reissued a "neutral" rating and issued a $208.00 price objective (up from $101.00) on shares of Celestica in a report on Wednesday, July 30th. Two research analysts have rated the stock with a hold rating, ten have given a buy rating and two have assigned a strong buy rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Buy" and an average price target of $168.92.

Celestica Price Performance

The stock has a market capitalization of $23.56 billion, a price-to-earnings ratio of 44.35 and a beta of 1.80. The company has a quick ratio of 0.86, a current ratio of 1.44 and a debt-to-equity ratio of 0.48. The business has a 50-day simple moving average of $159.71 and a two-hundred day simple moving average of $120.87.

Celestica (NYSE:CLS - Get Free Report) TSE: CLS last announced its quarterly earnings data on Monday, July 28th. The technology company reported $1.39 EPS for the quarter, beating analysts' consensus estimates of $1.23 by $0.16. Celestica had a return on equity of 28.23% and a net margin of 5.11%. The company had revenue of $2.89 billion during the quarter, compared to the consensus estimate of $2.65 billion. During the same quarter in the prior year, the firm earned $0.91 EPS. The company's quarterly revenue was up 21.0% compared to the same quarter last year. As a group, research analysts predict that Celestica, Inc. will post 4.35 earnings per share for the current fiscal year.

Institutional Trading of Celestica

Several large investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. raised its stake in Celestica by 0.8% during the 1st quarter. Vanguard Group Inc. now owns 4,514,605 shares of the technology company's stock valued at $356,135,000 after purchasing an additional 35,690 shares during the period. Dimensional Fund Advisors LP increased its stake in shares of Celestica by 49.5% in the fourth quarter. Dimensional Fund Advisors LP now owns 2,173,318 shares of the technology company's stock worth $200,601,000 after acquiring an additional 719,805 shares during the last quarter. Voya Investment Management LLC increased its stake in shares of Celestica by 362.8% in the first quarter. Voya Investment Management LLC now owns 1,854,085 shares of the technology company's stock worth $146,122,000 after acquiring an additional 1,453,473 shares during the last quarter. Franklin Resources Inc. increased its stake in shares of Celestica by 25.8% in the second quarter. Franklin Resources Inc. now owns 1,833,205 shares of the technology company's stock worth $286,184,000 after acquiring an additional 375,910 shares during the last quarter. Finally, Connor Clark & Lunn Investment Management Ltd. increased its stake in shares of Celestica by 17.6% in the second quarter. Connor Clark & Lunn Investment Management Ltd. now owns 1,733,686 shares of the technology company's stock worth $271,045,000 after acquiring an additional 259,504 shares during the last quarter. 67.38% of the stock is owned by institutional investors and hedge funds.

About Celestica

Celestica Inc provides supply chain solutions in North America, Europe, and Asia. It operates through two segments: Advanced Technology Solutions, and Connectivity & Cloud Solutions. The company offers a range of product manufacturing and related supply chain services, including design and development, new product introduction, engineering services, component sourcing, electronics manufacturing and assembly, testing, complex mechanical assembly, systems integration, precision machining, order fulfillment, logistics, asset management, product licensing, and after-market repair and return services.

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