Celestica (NYSE:CLS) Stock Price Down 3% - Here's Why

Key Points

• Celestica shares fell 3% on Wednesday, trading as low as $322.50 before last changing hands at $334.62, below the prior close of $345.03.
• Analyst sentiment remains bullish, with several firms raising price targets and TD Cowen/TD Securities upgrading the stock to buy; the consensus rating is Buy with a target price of $427.42.
• Recent earnings were strong, as Celestica beat EPS estimates at $2.16 and posted 52.8% revenue growth year over year, though insiders have been selling shares in recent months.

Shares of Celestica, Inc. (NYSE:CLS - Get Free Report) TSE: CLS were down 3% during trading on Wednesday . The company traded as low as $322.50 and last traded at $334.6170. Approximately 1,838,496 shares changed hands during mid-day trading, a decline of 21% from the average daily volume of 2,330,087 shares. The stock had previously closed at $345.03.

Wall Street Analysts Forecast Growth

A number of brokerages recently weighed in on CLS. TD Cowen upgraded shares of Celestica from a "hold" rating to a "buy" rating and increased their price objective for the company from $350.00 to $430.00 in a research report on Wednesday, April 29th. TD increased their price target on Celestica from $330.00 to $350.00 and gave the company a "hold" rating in a report on Monday, April 20th. TD Securities raised Celestica from a "hold" rating to a "buy" rating and set a $430.00 price objective for the company in a report on Wednesday, April 29th. Susquehanna increased their target price on Celestica from $460.00 to $510.00 and gave the company a "positive" rating in a report on Wednesday, April 29th. Finally, The Goldman Sachs Group reissued a "buy" rating and issued a $475.00 target price on shares of Celestica in a research report on Tuesday, April 28th. Two analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating and two have issued a Hold rating to the company's stock. According to data from MarketBeat, Celestica currently has a consensus rating of "Buy" and a consensus target price of $427.42.

Celestica Trading Down 3.0%

The company has a debt-to-equity ratio of 0.36, a quick ratio of 0.73 and a current ratio of 1.26. The stock has a market capitalization of $38.47 billion, a PE ratio of 40.46, a PEG ratio of 0.80 and a beta of 2.05. The stock has a 50-day moving average price of $371.68 and a two-hundred day moving average price of $331.37.

Celestica (NYSE:CLS - Get Free Report) TSE: CLS last released its earnings results on Monday, April 27th. The technology company reported $2.16 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.08 by $0.08. Celestica had a net margin of 6.95% and a return on equity of 36.91%. The company had revenue of $3.96 billion during the quarter, compared to analyst estimates of $3.97 billion. During the same period in the prior year, the firm posted $1.20 EPS. The firm's quarterly revenue was up 52.8% compared to the same quarter last year. Celestica has set its FY 2026 guidance at 10.150-10.150 EPS and its Q2 2026 guidance at 2.140-2.340 EPS. As a group, equities analysts forecast that Celestica, Inc. will post 9.5 earnings per share for the current year.

Insider Activity

In related news, Director Michael Max Wilson sold 4,168 shares of the company's stock in a transaction on Tuesday, May 19th. The shares were sold at an average price of $333.31, for a total value of $1,389,236.08. Following the completion of the transaction, the director owned 24,718 shares of the company's stock, valued at approximately $8,238,756.58. This represents a 14.43% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Robert Mionis sold 18,176 shares of the stock in a transaction on Wednesday, June 17th. The stock was sold at an average price of $385.17, for a total value of $7,000,849.92. Following the completion of the sale, the chief executive officer owned 60,384 shares of the company's stock, valued at $23,258,105.28. The trade was a 23.14% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 161,168 shares of company stock worth $63,190,485 in the last three months. Company insiders own 1.10% of the company's stock.

Hedge Funds Weigh In On Celestica

A number of hedge funds have recently made changes to their positions in the business. NewGen Equity Long Short Fund bought a new stake in Celestica during the 2nd quarter valued at approximately $14,050,000. Northwestern Mutual Wealth Management Co. boosted its stake in Celestica by 7,646.2% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 1,007 shares of the technology company's stock worth $157,000 after purchasing an additional 994 shares during the period. First Trust Advisors LP grew its holdings in Celestica by 30.0% during the 2nd quarter. First Trust Advisors LP now owns 78,061 shares of the technology company's stock valued at $12,197,000 after buying an additional 18,025 shares in the last quarter. NewEdge Advisors LLC grew its holdings in Celestica by 385.8% during the 2nd quarter. NewEdge Advisors LLC now owns 2,803 shares of the technology company's stock valued at $438,000 after buying an additional 2,226 shares in the last quarter. Finally, HUB Investment Partners LLC raised its position in shares of Celestica by 11.0% during the second quarter. HUB Investment Partners LLC now owns 3,181 shares of the technology company's stock valued at $497,000 after buying an additional 315 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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