Celestica (NYSE:CLS) Shares Up 6.8% - Time to Buy?

Key Points

• Shares rose 6.8% intraday to about $350.64 on Friday, with volume of 3.315 million shares (+33% vs. average), up from a prior close of $328.33.
• Analysts maintain a consensus "Moderate Buy" rating with a consensus price target of $355.39; recent firm targets range roughly from $338 to $410 and several brokers have issued buy ratings.
• There was substantial insider selling last quarter—297,923 shares worth approximately $88.0M (including large sales by Yann Etienvre and President Jason Phillips); insiders now own 0.52% while institutional investors hold 67.38%.

Celestica, Inc. (NYSE:CLS - Get Free Report) TSE: CLS's share price shot up 6.8% during mid-day trading on Friday . The company traded as high as $354.75 and last traded at $350.6370. 3,315,220 shares traded hands during trading, an increase of 33% from the average session volume of 2,490,166 shares. The stock had previously closed at $328.33.

Analyst Ratings Changes

A number of brokerages have issued reports on CLS. Canadian Imperial Bank of Commerce reduced their price objective on shares of Celestica from $400.00 to $360.00 and set an "outperform" rating on the stock in a research report on Wednesday, March 11th. Bank of America began coverage on shares of Celestica in a research report on Wednesday, January 28th. They set a "buy" rating and a $400.00 price objective on the stock. Aletheia Capital boosted their price objective on shares of Celestica from $330.00 to $410.00 and gave the company a "buy" rating in a research report on Tuesday, January 20th. Wall Street Zen upgraded shares of Celestica from a "hold" rating to a "buy" rating in a report on Friday, January 23rd. Finally, Citigroup dropped their target price on shares of Celestica from $375.00 to $338.00 and set a "buy" rating on the stock in a report on Friday, January 30th. One investment analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and four have assigned 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 $355.39.

Celestica Trading Up 6.8%

The company has a market cap of $40.31 billion, a P/E ratio of 48.84 and a beta of 1.88. The stock's 50 day moving average is $284.36 and its 200-day moving average is $294.26. The company has a current ratio of 1.44, a quick ratio of 0.88 and a debt-to-equity ratio of 0.34.

Insider Buying and Selling

In related news, insider Yann L. Etienvre sold 86,229 shares of the company's stock in a transaction dated Monday, February 2nd. The shares were sold at an average price of $287.45, for a total value of $24,786,526.05. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, President Jason Phillips sold 100,000 shares of the company's stock in a transaction dated Friday, February 6th. The stock was sold at an average price of $308.92, for a total transaction of $30,892,000.00. Following the completion of the transaction, the president owned 12,584 shares in the company, valued at approximately $3,887,449.28. The trade was a 88.82% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 297,923 shares of company stock worth $88,027,459 in the last quarter. Corporate insiders own 0.52% of the company's stock.

Hedge Funds Weigh In On Celestica

A number of hedge funds have recently bought and sold shares of the company. Osbon Capital Management LLC purchased a new position in Celestica in the 4th quarter worth about $755,000. World Investment Advisors raised its position in Celestica by 13.2% in the 4th quarter. World Investment Advisors now owns 1,532 shares of the technology company's stock worth $453,000 after buying an additional 179 shares during the last quarter. Corient Private Wealth LLC raised its position in Celestica by 16.3% in the 4th quarter. Corient Private Wealth LLC now owns 9,348 shares of the technology company's stock worth $2,764,000 after buying an additional 1,308 shares during the last quarter. SHP Wealth Management purchased a new position in Celestica in the 4th quarter worth about $60,000. Finally, Tobam raised its position in Celestica by 29.8% in the 4th quarter. Tobam now owns 2,101 shares of the technology company's stock worth $621,000 after buying an additional 482 shares during the last quarter. Institutional investors 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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