Celestica (NYSE:CLS) Shares Down 6.5% - Here's Why

Key Points

• Shares down 6.5% — Celestica fell to about $322 on Monday (trading as low as $321.19) with volume of ~569,280 shares, an 86% drop versus average session volume.
• Analysts remain constructive: several firms raised price targets (RBC to $400, JPMorgan to $360, UBS to $350) and the consensus rating is a “Moderate Buy” with a $336.13 average target.
• Q3 beat and insider buy: Celestica reported EPS $1.58 vs $1.45 expected and revenue $3.19B (+27.8% YoY), while a director purchased 6,000 shares at about $341.67.

Celestica, Inc. (NYSE:CLS - Get Free Report) TSE: CLS's stock price fell 6.5% during trading on Monday . The stock traded as low as $321.19 and last traded at $321.9760. 569,280 shares traded hands during mid-day trading, a decline of 86% from the average session volume of 3,959,880 shares. The stock had previously closed at $344.41.

Wall Street Analyst Weigh In

CLS has been the topic of several analyst reports. JPMorgan Chase & Co. increased their target price on shares of Celestica from $295.00 to $360.00 and gave the stock an "overweight" rating in a report on Wednesday, October 29th. Royal Bank Of Canada increased their price target on Celestica from $315.00 to $400.00 and gave the stock an "outperform" rating in a report on Wednesday, October 29th. UBS Group lifted their price objective on Celestica from $208.00 to $350.00 and gave the company a "neutral" rating in a report on Wednesday, October 29th. TD Securities raised their target price on shares of Celestica from $238.00 to $305.00 and gave the stock a "hold" rating in a report on Wednesday, October 29th. Finally, Weiss Ratings reaffirmed a "buy (b)" rating on shares of Celestica in a research note on Wednesday, October 8th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and three have issued a Hold rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $336.13.

Celestica Stock Performance

The firm has a market cap of $37.21 billion, a price-to-earnings ratio of 52.56 and a beta of 1.85. The stock has a 50-day moving average of $290.79 and a 200-day moving average of $212.96. The company has a debt-to-equity ratio of 0.37, a quick ratio of 0.86 and a current ratio of 1.47.

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 for the quarter, topping analysts' consensus estimates of $1.45 by $0.13. Celestica had a return on equity of 30.53% and a net margin of 6.35%.The firm had revenue of $3.19 billion during the quarter, compared to the consensus estimate of $3.01 billion. During the same quarter in the prior year, the firm posted $1.04 EPS. The business's revenue was up 27.8% on a year-over-year basis. As a group, analysts anticipate that Celestica, Inc. will post 4.35 EPS for the current fiscal year.

Insider Transactions at Celestica

In other Celestica news, Director Laurette T. Koellner purchased 6,000 shares of the business's stock in a transaction on Thursday, October 30th. The shares were purchased at an average cost of $341.67 per share, with a total value of $2,050,020.00. Following the transaction, the director directly owned 6,000 shares of the company's stock, valued at $2,050,020. This represents a ∞ increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Insiders own 0.52% of the company's stock.

Institutional Trading of Celestica

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Golden State Wealth Management LLC boosted its position in Celestica by 102.5% during the 2nd quarter. Golden State Wealth Management LLC now owns 164 shares of the technology company's stock valued at $26,000 after buying an additional 83 shares during the period. MassMutual Private Wealth & Trust FSB increased its position in shares of Celestica by 42.5% in the third quarter. MassMutual Private Wealth & Trust FSB now owns 124 shares of the technology company's stock valued at $31,000 after acquiring an additional 37 shares during the period. First Horizon Corp bought a new position in shares of Celestica during the third quarter valued at about $31,000. ST Germain D J Co. Inc. purchased a new stake in shares of Celestica during the second quarter worth about $37,000. Finally, Twin Peaks Wealth Advisors LLC bought a new stake in shares of Celestica in the second quarter worth about $40,000. Institutional investors and hedge funds own 67.38% of the company's stock.

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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