Celestica (NYSE:CLS) Trading 3.4% Higher - Here's What Happened

Key Points

• Celestica shares rose 3.4% in mid-day trading, moving on heavier-than-usual volume as investors reacted to recent company and analyst developments.
• Several Wall Street firms turned more positive on the stock, including TD Securities upgrading Celestica to Buy and multiple firms raising price targets. The consensus analyst view is now Moderate Buy with an average target of $427.42.
• Celestica also reported strong quarterly results, with EPS of $2.16 beating estimates and revenue up 52.8% year over year. The company continues to benefit from strong institutional ownership, while insiders have been selling shares recently.

Shares of Celestica, Inc. (NYSE:CLS - Get Free Report) TSE: CLS rose 3.4% during mid-day trading on Wednesday . The stock traded as high as $376.54 and last traded at $363.1210. 2,672,166 shares changed hands during trading, an increase of 11% from the average daily volume of 2,412,905 shares. The stock had previously closed at $351.20.

Wall Street Analyst Weigh In

Several research firms recently commented on CLS. TD Securities upgraded Celestica from a "hold" rating to a "buy" rating and set a $430.00 price objective on the stock in a research note on Wednesday, April 29th. Bank of America upped their price target on Celestica from $400.00 to $430.00 and gave the company a "buy" rating in a research report on Monday, April 20th. The Goldman Sachs Group reiterated a "buy" rating and set a $475.00 price target on shares of Celestica in a research note on Tuesday, April 28th. Canadian Imperial Bank of Commerce reissued an "outperform" rating and issued a $480.00 price objective on shares of Celestica in a report on Wednesday, April 29th. Finally, UBS Group boosted their price objective on Celestica from $355.00 to $400.00 and gave the company a "neutral" rating in a research note on Wednesday, April 29th. One investment analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $427.42.

Celestica Price Performance

The firm has a market cap of $41.75 billion, a P/E ratio of 43.91, a PEG ratio of 0.88 and a beta of 2.02. The business's fifty day simple moving average is $384.44 and its 200-day simple moving average is $327.29. The company has a current ratio of 1.26, a quick ratio of 0.73 and a debt-to-equity ratio of 0.36.

Celestica (NYSE:CLS - Get Free Report) TSE: CLS last announced its quarterly earnings results on Monday, April 27th. The technology company reported $2.16 earnings per share for the quarter, beating the consensus estimate of $2.08 by $0.08. The company had revenue of $3.96 billion during the quarter, compared to analysts' expectations of $3.97 billion. Celestica had a return on equity of 36.91% and a net margin of 6.95%.The firm's quarterly revenue was up 52.8% compared to the same quarter last year. During the same period in the previous year, the business earned $1.20 earnings per share. 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, analysts forecast that Celestica, Inc. will post 9.5 EPS for the current fiscal year.

Insider Activity

In other Celestica news, CFO Mandeep Chawla sold 17,000 shares of the stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $399.65, for a total value of $6,794,050.00. Following the sale, the chief financial officer directly owned 82,444 shares in the company, valued at $32,948,744.60. This represents a 17.10% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Michael Max Wilson sold 4,168 shares of the firm's stock in a transaction on Tuesday, May 19th. The shares were sold at an average price of $333.31, for a total transaction of $1,389,236.08. Following the completion of the transaction, the director directly owned 24,718 shares of the company's stock, valued at approximately $8,238,756.58. The trade was a 14.43% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders sold 161,168 shares of company stock worth $63,190,485. 1.10% of the stock is owned by company insiders.

Institutional Investors Weigh In On Celestica

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