Celestica (NYSE:CLS) Shares Down 5.5% - Here's What Happened

Key Points

• Shares fell 5.5% on Wednesday to about $310.52 (intraday low $306.21) from a prior close of $328.56, on lighter-than-average trading (~984,240 shares, down 55% vs. the 2.21M average).
• Analysts are mixed but generally constructive: Celestica has a consensus rating of Moderate Buy with a $336.13 average target, and several shops recently raised targets (RBC $400, Barclays $359, UBS $350).
• The company reported a strong quarter—EPS $1.58 vs. $1.45 expected and revenue $3.19B (+27.8% YoY)—while trading at a P/E of about 49.5 and a market cap near $35.2B.

Shares of Celestica, Inc. (NYSE:CLS - Get Free Report) TSE: CLS were down 5.5% during trading on Wednesday . The stock traded as low as $306.21 and last traded at $310.5230. Approximately 984,240 shares changed hands during mid-day trading, a decline of 55% from the average daily volume of 2,206,002 shares. The stock had previously closed at $328.56.

Analyst Upgrades and Downgrades

A number of research firms recently issued reports on CLS. TD Cowen reiterated a "hold" rating and issued a $238.00 target price on shares of Celestica in a report on Friday, October 3rd. Wall Street Zen cut Celestica from a "buy" rating to a "hold" rating in a research note on Saturday, December 6th. Barclays upped their target price on shares of Celestica from $357.00 to $359.00 and gave the stock an "overweight" rating in a research note on Friday, November 14th. UBS Group lifted their price target on shares of Celestica from $208.00 to $350.00 and gave the stock a "neutral" rating in a research note on Wednesday, October 29th. Finally, Royal Bank Of Canada increased their price objective on shares of Celestica from $315.00 to $400.00 and gave the company an "outperform" rating in a research report on Wednesday, October 29th. One analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat.com, Celestica presently has a consensus rating of "Moderate Buy" and a consensus price target of $336.13.

Celestica Price Performance

The company has a debt-to-equity ratio of 0.37, a current ratio of 1.47 and a quick ratio of 0.88. The firm has a market cap of $35.17 billion, a price-to-earnings ratio of 49.51 and a beta of 1.87. The stock has a 50-day moving average price of $312.74 and a 200 day moving average price of $254.15.

Celestica (NYSE:CLS - Get Free Report) TSE: CLS last released its quarterly earnings results on Monday, October 27th. The technology company reported $1.58 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.45 by $0.13. The firm had revenue of $3.19 billion for the quarter, compared to the consensus estimate of $3.01 billion. Celestica had a return on equity of 30.53% and a net margin of 6.35%.The firm's quarterly revenue was up 27.8% compared to the same quarter last year. During the same quarter last year, the business posted $1.04 EPS. As a group, equities research analysts forecast that Celestica, Inc. will post 4.35 earnings per share for the current fiscal year.

Insider Activity at Celestica

In other Celestica news, Director Laurette T. Koellner purchased 6,000 shares of Celestica stock in a transaction that occurred on Thursday, October 30th. The stock was purchased at an average price of $341.67 per share, for a total transaction of $2,050,020.00. Following the transaction, the director directly owned 6,000 shares in the company, valued at $2,050,020. This trade represents a ∞ increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is accessible through the SEC website. 0.52% of the stock is owned by insiders.

Hedge Funds Weigh In On Celestica

A number of hedge funds and other institutional investors have recently made changes to their positions in CLS. Golden State Wealth Management LLC raised its stake in shares of Celestica by 102.5% during the second quarter. Golden State Wealth Management LLC now owns 164 shares of the technology company's stock worth $26,000 after purchasing an additional 83 shares during the last quarter. First Horizon Corp purchased a new stake in Celestica in the 3rd quarter valued at approximately $31,000. MassMutual Private Wealth & Trust FSB raised its stake in shares of Celestica by 42.5% during the 3rd quarter. MassMutual Private Wealth & Trust FSB now owns 124 shares of the technology company's stock worth $31,000 after buying an additional 37 shares in the last quarter. ST Germain D J Co. Inc. acquired a new stake in shares of Celestica in the 2nd quarter valued at approximately $37,000. Finally, Avion Wealth purchased a new stake in shares of Celestica in the third quarter valued at approximately $40,000. Hedge funds and other institutional investors own 67.38% of the company's stock.

Celestica Company Profile

Celestica Inc is a multinational electronics manufacturing services (EMS) company that provides design, engineering, manufacturing and supply chain solutions to original equipment manufacturers across a range of industries. Headquartered in Toronto, Ontario, Canada, Celestica works with customers to develop and produce complex electronic and electro-mechanical products, integrating activities from product design and prototyping through high-volume assembly, testing and final system integration.

The company's service offering typically includes product engineering and design support, printed circuit board assembly, box-build and systems assembly, automated test and inspection, aftermarket repair and refurbishment, and end-to-end supply chain and logistics management.

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