Celestica (NYSE:CLS) Stock Price Down 6.6% - Should You Sell?

Key Points

• Celestica shares fell 6.6% to about $327 on elevated trading volume, despite reporting second-quarter revenue of roughly $4.68 billion and adjusted EPS of $2.54—both well above analyst expectations.
• Growth prospects remain strong: Management raised its 2026 outlook and expects 2027 growth above 65%, supported by rising AI infrastructure and hyperscaler demand. The Connectivity & Cloud Solutions segment grew 84% year over year.
• Valuation and volatility are key risks. The stock trades at about 34 times earnings with a beta above 2, while recent CEO and CFO share sales and profit-taking may be weighing on the stock; analysts nevertheless maintain a broadly bullish “Moderate Buy” consensus with an average $437 price target.

Celestica, Inc. (NYSE:CLS - Get Free Report) TSE: CLS's stock price traded down 6.6% during trading on Wednesday . The company traded as low as $317.61 and last traded at $327.1620. Approximately 4,102,580 shares changed hands during mid-day trading, an increase of 71% from the average session volume of 2,396,478 shares. The stock had previously closed at $350.20.

Key Celestica News

Here are the key news stories impacting Celestica this week:

• Positive Sentiment: Q2 results significantly exceeded expectations. Revenue rose 62% year over year to approximately $4.70 billion, while adjusted EPS of $2.54 surpassed the $2.29 consensus estimate. Both revenue and adjusted EPS exceeded the high end of management’s guidance range. Celestica Announces Second Quarter 2026 Financial Results
• Positive Sentiment: Management raised its 2026 outlook and signaled faster growth in 2027. Strong customer visibility, networking programs and hyperscaler capital spending support expectations for accelerating revenue and margin growth. Reports indicate the company lifted its 2026 revenue outlook to roughly $20.5 billion and expects 2027 growth to exceed 65%. Celestica Q2 Earnings Call Points to Faster Growth in 2027
• Positive Sentiment: AI infrastructure demand is strengthening Celestica’s business mix. Its Connectivity & Cloud Solutions segment grew 84% year over year as cloud networking, storage and compute customers adopt higher-value data-center hardware and move programs into mass production. CLS Shows How AI Networking is Reshaping Electronics Manufacturing
• Positive Sentiment: Analysts increased price targets. JPMorgan raised its target to $485 and maintained an Overweight rating, while RBC lifted its target to $450 and reiterated Outperform, reinforcing bullish sentiment around Celestica’s AI exposure. JPMorgan Celestica Price Target Update
• Neutral Sentiment: Wall Street’s average brokerage recommendation remains bullish, although analyst ratings can be biased toward optimistic views and may provide limited incremental information after the recent rally. Is It Worth Investing in Celestica Based on Wall Street’s Bullish Views?
• Negative Sentiment: Valuation and profit-taking are near-term risks. With a price-to-earnings ratio around 34, a beta above 2 and a recent substantial advance, investors may be locking in gains or questioning how much AI-driven upside is already reflected in CLS stock. This helps explain the decline despite strong fundamentals.

Analyst Upgrades and Downgrades

A number of research firms have issued reports on CLS. BWS Financial reissued a "buy" rating on shares of Celestica in a research report on Tuesday. Citigroup increased their price target on Celestica from $338.00 to $415.00 and gave the stock a "buy" rating in a research note on Wednesday, April 29th. TD Cowen upgraded Celestica from a "hold" rating to a "buy" rating and boosted their price objective for the company from $350.00 to $430.00 in a research note on Wednesday, April 29th. Wolfe Research upped their price objective on shares of Celestica from $425.00 to $475.00 and gave the company an "outperform" rating in a report on Wednesday. Finally, UBS Group reiterated a "neutral" rating and set a $410.00 target price on shares of Celestica in a research report on Wednesday. One investment analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat.com, Celestica presently has an average rating of "Moderate Buy" and an average target price of $437.00.

Celestica Stock Performance

The company has a quick ratio of 0.73, a current ratio of 1.26 and a debt-to-equity ratio of 0.36. The company has a market capitalization of $37.61 billion, a PE ratio of 34.01, a PEG ratio of 0.74 and a beta of 2.05. The company has a 50-day moving average price of $361.83 and a two-hundred day moving average price of $332.91.

Celestica (NYSE:CLS - Get Free Report) TSE: CLS last issued its quarterly earnings data on Monday, July 27th. The technology company reported $2.54 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.29 by $0.25. Celestica had a return on equity of 41.69% and a net margin of 7.16%.The business had revenue of $4.68 billion for the quarter, compared to analysts' expectations of $4.30 billion. During the same quarter in the prior year, the firm posted $1.39 EPS. The firm's quarterly revenue was up 62.4% on a year-over-year basis. Celestica has set its FY 2026 guidance at 11.300-11.300 EPS and its Q3 2026 guidance at 2.880-3.080 EPS. Analysts predict that Celestica, Inc. will post 9.57 EPS for the current fiscal year.

Insider Transactions at Celestica

In other news, CEO Robert Mionis sold 18,176 shares of the firm's stock in a transaction that occurred on Wednesday, June 17th. The shares were sold at an average price of $385.17, for a total value of $7,000,849.92. Following the completion of the transaction, the chief executive officer directly owned 60,384 shares in the company, valued at approximately $23,258,105.28. This trade represents a 23.14% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Mandeep Chawla sold 17,000 shares of the stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $399.65, for a total transaction of $6,794,050.00. Following the completion of the sale, the chief financial officer owned 82,444 shares in the company, valued at $32,948,744.60. This represents a 17.10% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 161,168 shares of company stock valued at $63,190,485. 1.10% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Celestica

Institutional investors have recently added to or reduced their stakes in the business. NewGen Equity Long Short Fund bought a new position in shares of Celestica in the second quarter worth approximately $14,050,000. Northwestern Mutual Wealth Management Co. lifted its position in Celestica by 7,646.2% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 1,007 shares of the technology company's stock valued at $157,000 after purchasing an additional 994 shares during the last quarter. First Trust Advisors LP lifted its position in Celestica by 30.0% during the second quarter. First Trust Advisors LP now owns 78,061 shares of the technology company's stock valued at $12,197,000 after purchasing an additional 18,025 shares during the last quarter. NewEdge Advisors LLC grew its stake in Celestica by 385.8% in the 2nd quarter. NewEdge Advisors LLC now owns 2,803 shares of the technology company's stock worth $438,000 after buying an additional 2,226 shares in the last quarter. Finally, HUB Investment Partners LLC grew its stake in Celestica by 11.0% in the 2nd quarter. HUB Investment Partners LLC now owns 3,181 shares of the technology company's stock worth $497,000 after buying an additional 315 shares in the last quarter. 67.38% of the stock is currently owned by institutional investors.

Celestica Company Profile

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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