Celestica (NYSE:CLS) Shares Gap Up - Still a Buy?

Key Points

• Celestica's stock price experienced a significant gap up, opening at $263.76 after closing at $243.72, with a trading volume of over 1 million shares.
• Analysts have mixed ratings for Celestica, with an average rating of "Moderate Buy" and a consensus target price of $207.38, despite some estimates going as high as $300.00.
• The company reported strong earnings with $1.39 per share, exceeding estimates, and a quarterly revenue of $2.89 billion, marking a 21% increase from the previous year.

Celestica, Inc. (NYSE:CLS - Get Free Report) TSE: CLS gapped up prior to trading on Monday . The stock had previously closed at $243.72, but opened at $263.76. Celestica shares last traded at $263.07, with a volume of 1,033,377 shares changing hands.

Wall Street Analyst Weigh In

Several research analysts have recently commented on CLS shares. TD Cowen reissued a "hold" rating and issued a $238.00 price objective on shares of Celestica in a research note on Friday, October 3rd. CICC Research assumed coverage on shares of Celestica in a report on Tuesday, August 19th. They issued an "outperform" rating for the company. BNP Paribas restated an "outperform" rating and issued a $300.00 price target on shares of Celestica in a research note on Thursday, September 25th. Barclays boosted their price target on shares of Celestica from $146.00 to $220.00 and gave the stock an "overweight" rating in a research note on Wednesday, July 30th. Finally, Weiss Ratings reissued a "buy (b)" rating on shares of Celestica in a research note on Wednesday, October 8th. One research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $207.38.

Celestica Stock Up 9.8%

The company has a debt-to-equity ratio of 0.48, a current ratio of 1.44 and a quick ratio of 0.86. The company has a market cap of $30.77 billion, a price-to-earnings ratio of 57.74 and a beta of 1.88. The firm's 50 day simple moving average is $224.30 and its 200-day simple moving average is $157.16.

Celestica (NYSE:CLS - Get Free Report) TSE: CLS last announced its earnings results on Monday, July 28th. The technology company reported $1.39 earnings per share for the quarter, topping the consensus estimate of $1.23 by $0.16. The business had revenue of $2.89 billion during 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 business's quarterly revenue was up 21.0% compared to the same quarter last year. During the same quarter in the prior 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. As a group, sell-side analysts anticipate that Celestica, Inc. will post 4.35 earnings per share for the current year.

Hedge Funds Weigh In On Celestica

Several hedge funds have recently bought and sold shares of the stock. Vanguard Group Inc. increased its position in Celestica by 0.8% during the first quarter. Vanguard Group Inc. now owns 4,514,605 shares of the technology company's stock worth $356,135,000 after buying an additional 35,690 shares in the last quarter. Voya Investment Management LLC increased its position in Celestica by 362.8% during the first quarter. Voya Investment Management LLC now owns 1,854,085 shares of the technology company's stock worth $146,122,000 after buying an additional 1,453,473 shares in the last quarter. Franklin Resources Inc. increased its position in Celestica by 25.8% during the second quarter. Franklin Resources Inc. now owns 1,833,205 shares of the technology company's stock worth $286,184,000 after buying an additional 375,910 shares in the last quarter. Connor Clark & Lunn Investment Management Ltd. grew its position 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 valued at $271,045,000 after purchasing an additional 259,504 shares during the period. Finally, Norges Bank purchased a new stake in shares of Celestica in the second quarter valued at $236,069,000. Hedge funds and other institutional investors 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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