Celestica (NYSE:CLS) Shares Gap Down - Should You Sell?

Key Points

• Celestica's stock opened significantly lower at $227.24 after closing at $240.46, reflecting a notable gap down in trading.
• Analysts have mixed ratings on Celestica, with significant price target adjustments; JPMorgan has increased their target from $225.00 to $295.00.
• The company reported strong earnings, with $1.39 EPS for the last quarter, exceeding expectations and showing a 21% year-over-year revenue growth.

Shares of Celestica, Inc. (NYSE:CLS - Get Free Report) TSE: CLS gapped down prior to trading on Thursday . The stock had previously closed at $240.46, but opened at $227.24. Celestica shares last traded at $235.53, with a volume of 968,959 shares trading hands.

Wall Street Analyst Weigh In

CLS has been the subject of several research analyst reports. Citigroup lifted their target price on shares of Celestica from $172.00 to $212.00 and gave the stock a "neutral" rating in a report on Wednesday, July 30th. JPMorgan Chase & Co. upped their price target on shares of Celestica from $225.00 to $295.00 and gave the company an "overweight" rating in a research report on Monday, September 8th. CICC Research started coverage on shares of Celestica in a research note on Tuesday, August 19th. They set an "outperform" rating on the stock. Canaccord Genuity Group raised their price objective on shares of Celestica from $126.00 to $240.00 and gave the company a "buy" rating in a research note on Wednesday, July 30th. Finally, UBS Group reaffirmed a "neutral" rating and issued a $208.00 price objective (up from $101.00) on shares of Celestica in a research note on Wednesday, July 30th. Two analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Buy" and a consensus target price of $174.75.

Celestica Trading Up 1.5%

The firm has a market capitalization of $28.09 billion, a P/E ratio of 52.93 and a beta of 1.89. 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 firm's 50-day simple moving average is $207.65 and its 200-day simple moving average is $143.39.

Celestica (NYSE:CLS - Get Free Report) TSE: CLS last issued its earnings results on Monday, July 28th. The technology company reported $1.39 EPS for the quarter, topping the consensus estimate of $1.23 by $0.16. The company had revenue of $2.89 billion for the quarter, compared to the consensus estimate of $2.65 billion. Celestica had a net margin of 5.11% and a return on equity of 28.23%. The firm's revenue for the quarter was up 21.0% on a year-over-year basis. During the same period in the previous year, the firm earned $0.91 earnings per share. Celestica has set its Q3 2025 guidance at 1.370-1.530 EPS. FY 2025 guidance at 5.500-5.500 EPS. Analysts anticipate that Celestica, Inc. will post 4.35 EPS for the current year.

Institutional Trading of Celestica

Several institutional investors and hedge funds have recently made changes to their positions in the business. Valeo Financial Advisors LLC grew its stake in shares of Celestica by 24.2% during the second quarter. Valeo Financial Advisors LLC now owns 4,363 shares of the technology company's stock worth $681,000 after acquiring an additional 849 shares during the last quarter. Orion Porfolio Solutions LLC purchased a new stake in Celestica in the 2nd quarter valued at $319,000. Munro Partners purchased a new position in shares of Celestica during the 2nd quarter worth $3,880,000. Thompson Davis & CO. Inc. acquired a new stake in shares of Celestica during the 2nd quarter worth about $328,000. Finally, B. Riley Wealth Advisors Inc. purchased a new position in Celestica during the 2nd quarter worth approximately $1,767,000. 67.38% of the stock is currently owned by institutional investors.

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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