Celestica (NYSE:CLS) Shares Up 7% - Here's Why

Key Points

• Celestica's stock rose 7% during trading on Monday, reaching a high of $270.15, with a last trading price of $260.84, despite a drop in average trading volume.
• A number of research firms have offered positive ratings on Celestica, with Canaccord Genuity boosting its target price to $240.00 and Wall Street Zen upgrading the stock to a "buy" rating.
• The company reported strong quarterly earnings, with an EPS of $1.39, exceeding expectations by $0.16 and showing a year-over-year revenue increase of 21% to $2.89 billion.

Celestica, Inc. (NYSE:CLS - Get Free Report) TSE: CLS shot up 7% during trading on Monday . The company traded as high as $270.15 and last traded at $260.84. 3,277,778 shares changed hands during mid-day trading, a decline of 20% from the average session volume of 4,080,144 shares. The stock had previously closed at $243.72.

Wall Street Analyst Weigh In

A number of research firms recently commented on CLS. CICC Research began coverage on shares of Celestica in a report on Tuesday, August 19th. They issued an "outperform" rating on the stock. Canaccord Genuity Group boosted their target price on shares of Celestica from $126.00 to $240.00 and gave the stock a "buy" rating in a report on Wednesday, July 30th. TD Securities downgraded shares of Celestica from a "buy" rating to a "hold" rating and boosted their target price for the stock from $130.00 to $238.00 in a report on Friday, October 3rd. Wall Street Zen upgraded shares of Celestica from a "hold" rating to a "buy" rating in a report on Saturday, October 4th. Finally, Weiss Ratings reissued a "buy (b)" rating on shares of Celestica in a research report on Wednesday, October 8th. One equities research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and four have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $207.38.

Celestica Trading Up 7.0%

The company's 50 day simple moving average is $224.30 and its two-hundred day simple moving average is $157.16. The company has a debt-to-equity ratio of 0.48, a quick ratio of 0.86 and a current ratio of 1.44. The stock has a market cap of $30.01 billion, a price-to-earnings ratio of 56.46 and a beta of 1.88.

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

Institutional Trading of Celestica

Several large investors have recently added to or reduced their stakes in the business. Jones Financial Companies Lllp boosted its holdings in shares of Celestica by 1,103.8% during the 1st quarter. Jones Financial Companies Lllp now owns 24,486 shares of the technology company's stock worth $1,930,000 after buying an additional 22,452 shares during the period. Consolidated Planning Corp bought a new stake in shares of Celestica during the 1st quarter worth $3,361,000. Fortis Capital Advisors LLC bought a new stake in shares of Celestica during the 2nd quarter worth $343,000. Think Investments LP bought a new stake in shares of Celestica during the 1st quarter worth $14,939,000. Finally, Royal Bank of Canada boosted its holdings in shares of Celestica by 1.5% during the 1st quarter. Royal Bank of Canada now owns 1,280,563 shares of the technology company's stock worth $100,922,000 after buying an additional 19,391 shares during the period. 67.38% of the stock is 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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