Celestica (NYSE:CLS) Shares Down 8.8% - Here's Why

Key Points

• Celestica shares fell 8.8% to about $310.37, with trading volume roughly 19% above its average.
• Despite the selloff, Celestica reported quarterly EPS of $2.54 and revenue of $4.68 billion, exceeding analyst estimates; analysts maintain a “Moderate Buy” consensus with an average price target of $438.86.
• Company insiders have sold 356,553 shares worth approximately $135.2 million over the past 90 days, including sizable sales by the CFO and CEO.

Shares of Celestica, Inc. (NYSE:CLS - Get Free Report) TSE: CLS traded down 8.8% on Tuesday . The company traded as low as $308.52 and last traded at $310.3680. Approximately 2,950,283 shares were traded during mid-day trading, an increase of 19% from the average daily volume of 2,471,343 shares. The stock had previously closed at $340.40.

Analysts Set New Price Targets

Several equities analysts have commented on the stock. UBS Group reissued a "neutral" rating and issued a $410.00 price target on shares of Celestica in a research report on Wednesday, July 29th. Bank of America reaffirmed a "buy" rating on shares of Celestica in a research report on Wednesday, July 29th. Stifel Nicolaus set a $500.00 price objective on Celestica in a research note on Tuesday, July 28th. Susquehanna increased their price objective on Celestica from $460.00 to $510.00 and gave the company a "positive" rating in a research note on Wednesday, April 29th. Finally, TD Securities raised Celestica from a "hold" rating to a "buy" rating and set a $430.00 target price for the company in a research note on Wednesday, April 29th. One investment analyst has rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $438.86.

Celestica Trading Down 8.8%

The company has a 50-day moving average price of $347.21 and a 200-day moving average price of $335.51. The firm has a market capitalization of $35.69 billion, a price-to-earnings ratio of 32.26 and a beta of 2.06. The company has a debt-to-equity ratio of 0.32, a quick ratio of 0.68 and a current ratio of 1.23.

Celestica (NYSE:CLS - Get Free Report) TSE: CLS last released its quarterly earnings data on Monday, July 27th. The technology company reported $2.54 EPS for the quarter, beating analysts' consensus estimates of $2.29 by $0.25. The business had revenue of $4.68 billion for the quarter, compared to the consensus estimate of $4.30 billion. Celestica had a return on equity of 39.96% and a net margin of 7.16%.The business's revenue for the quarter was up 62.4% on a year-over-year basis. During the same quarter in the prior year, the business posted $1.39 EPS. Celestica has set its FY 2026 guidance at 11.300-11.300 EPS and its Q3 2026 guidance at 2.880-3.080 EPS. As a group, research analysts forecast that Celestica, Inc. will post 9.97 EPS for the current fiscal year.

Insider Activity at Celestica

In other news, CFO Mandeep Chawla sold 16,117 shares of the company's stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $369.32, for a total value of $5,952,330.44. Following the completion of the transaction, the chief financial officer owned 65,444 shares in the company, valued at approximately $24,169,778.08. This represents a 19.76% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, CEO Robert Mionis sold 23,496 shares of the stock in a transaction on Thursday, August 13th. The shares were sold at an average price of $362.39, for a total transaction of $8,514,715.44. Following the completion of the transaction, the chief executive officer directly owned 23,396 shares in the company, valued at $8,478,476.44. This trade represents a 50.11% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 356,553 shares of company stock valued at $135,238,444 in the last 90 days. Insiders own 1.10% of the company's stock.

Hedge Funds Weigh In On Celestica

Several large investors have recently bought and sold shares of CLS. Empowered Funds LLC acquired a new stake in shares of Celestica during the second quarter worth about $322,000. Equitable Holdings Inc. purchased a new stake in shares of Celestica in the 2nd quarter valued at about $487,000. Centaurus Financial Inc. acquired a new stake in shares of Celestica in the 2nd quarter valued at about $314,000. Public Employees Retirement System of Ohio acquired a new stake in shares of Celestica in the 2nd quarter valued at about $10,218,000. Finally, Capstone Investment Advisors LLC purchased a new position in Celestica during the 2nd quarter worth approximately $448,000. Institutional investors and hedge funds own 67.38% of the company's stock.

About Celestica

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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