Celestica (NYSE:CLS) Stock Price Down 7.8% - Here's Why

Key Points

• Shares fell 7.8% on Monday to about $317.63 (intraday low $316.73), with volume down ~22% versus the average session.
• Several brokers have raised targets (UBS to $350, JPMorgan to $360, Barclays to $359), leaving a MarketBeat consensus of “Moderate Buy” with an average target of $336.13.
• Celestica reported an earnings beat (Q: $1.58 EPS vs $1.45 est; revenue $3.19B vs $3.01B, +27.8% y/y) and a director bought 6,000 shares at $341.67.

Celestica, Inc. (NYSE:CLS - Get Free Report) TSE: CLS shares fell 7.8% during trading on Monday . The company traded as low as $316.73 and last traded at $317.6260. 3,117,543 shares changed hands during trading, a decline of 22% from the average session volume of 3,971,785 shares. The stock had previously closed at $344.41.

Analysts Set New Price Targets

A number of brokerages have recently weighed in on CLS. Wall Street Zen raised shares of Celestica from a "hold" rating to a "buy" rating in a research note on Saturday, October 4th. UBS Group raised their price objective on shares of Celestica from $208.00 to $350.00 and gave the company a "neutral" rating in a research note on Wednesday, October 29th. TD Cowen reiterated a "hold" rating and set a $238.00 target price on shares of Celestica in a research note on Friday, October 3rd. JPMorgan Chase & Co. raised their target price on shares of Celestica from $295.00 to $360.00 and gave the stock an "overweight" rating in a report on Wednesday, October 29th. Finally, Barclays boosted their price objective on shares of Celestica from $357.00 to $359.00 and gave the company an "overweight" rating in a research report on Friday, November 14th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat, Celestica currently has a consensus rating of "Moderate Buy" and an average target price of $336.13.

Celestica Price Performance

The company has a debt-to-equity ratio of 0.37, a quick ratio of 0.86 and a current ratio of 1.47. The company has a market cap of $36.53 billion, a P/E ratio of 51.56 and a beta of 1.85. The firm's fifty day moving average is $290.79 and its two-hundred day moving average is $212.96.

Celestica (NYSE:CLS - Get Free Report) TSE: CLS last released its earnings results on Monday, October 27th. The technology company reported $1.58 EPS for the quarter, topping the consensus estimate of $1.45 by $0.13. The firm had revenue of $3.19 billion for the quarter, compared to the consensus estimate of $3.01 billion. Celestica had a net margin of 6.35% and a return on equity of 30.53%. The company's quarterly revenue was up 27.8% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.04 earnings per share. As a group, analysts anticipate that Celestica, Inc. will post 4.35 earnings per share for the current fiscal year.

Insider Buying and Selling at Celestica

In related news, Director Laurette T. Koellner bought 6,000 shares of the company's stock in a transaction dated Thursday, October 30th. The stock was purchased at an average price of $341.67 per share, for a total transaction of $2,050,020.00. Following the acquisition, the director owned 6,000 shares in the company, valued at $2,050,020. This trade represents a ∞ increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.52% of the stock is currently owned by company insiders.

Institutional Trading of Celestica

Institutional investors and hedge funds have recently made changes to their positions in the company. Golden State Wealth Management LLC lifted its holdings in shares of Celestica by 102.5% during the 2nd quarter. Golden State Wealth Management LLC now owns 164 shares of the technology company's stock valued at $26,000 after purchasing an additional 83 shares during the last quarter. MassMutual Private Wealth & Trust FSB increased its position in Celestica by 42.5% during the 3rd quarter. MassMutual Private Wealth & Trust FSB now owns 124 shares of the technology company's stock valued at $31,000 after buying an additional 37 shares in the last quarter. First Horizon Corp purchased a new stake in Celestica in the third quarter valued at about $31,000. ST Germain D J Co. Inc. acquired a new stake in Celestica in the second quarter worth about $37,000. Finally, Twin Peaks Wealth Advisors LLC purchased a new stake in shares of Celestica during the second quarter worth about $40,000. 67.38% of the stock is currently 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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