Celestica (NYSE:CLS) Trading 6.5% Higher - Time to Buy?

Key Points

• Celestica shares rose 6.5% in Tuesday trading, reaching as high as $365.67, though volume was below average.
• Wall Street remains bullish after several analyst upgrades and higher price targets, with a consensus rating of “Buy” and an average target of $427.42.
• The company posted strong quarterly results, including EPS of $2.16 versus $2.08 expected and revenue growth of 52.8% year over year, while insiders have also been selling shares recently.

Celestica, Inc. (NYSE:CLS - Get Free Report) TSE: CLS's share price rose 6.5% during trading on Tuesday . The stock traded as high as $365.67 and last traded at $365.5470. 1,730,341 shares changed hands during trading, a decline of 28% from the average session volume of 2,396,689 shares. The stock had previously closed at $343.25.

Analyst Ratings Changes

A number of analysts recently issued reports on CLS shares. Weiss Ratings upgraded shares of Celestica from a "buy (b-)" rating to a "buy (b)" rating in a research note on Monday, May 4th. JPMorgan Chase & Co. increased their price objective on shares of Celestica from $410.00 to $425.00 and gave the company an "overweight" rating in a research note on Wednesday, April 29th. Rothschild & Co Redburn started coverage on shares of Celestica in a report on Friday, May 1st. They set a "buy" rating and a $460.00 price objective for the company. Royal Bank Of Canada boosted their target price on shares of Celestica from $400.00 to $440.00 and gave the stock an "outperform" rating in a research report on Wednesday, April 29th. Finally, TD Securities upgraded shares of Celestica from a "hold" rating to a "buy" rating and set a $430.00 target price on the stock in a research note on Wednesday, April 29th. Two research analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat, Celestica currently has a consensus rating of "Buy" and an average price target of $427.42.

Celestica Stock Up 6.5%

The stock's fifty day simple moving average is $382.26 and its two-hundred day simple moving average is $327.82. The company has a debt-to-equity ratio of 0.36, a current ratio of 1.26 and a quick ratio of 0.73. The company has a market capitalization of $42.03 billion, a price-to-earnings ratio of 44.20, a PEG ratio of 0.79 and a beta of 2.02.

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

Insider Activity

In related news, CEO Robert Mionis sold 66,056 shares of the business's stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $400.06, for a total transaction of $26,426,363.36. Following the completion of the transaction, the chief executive officer owned 134,328 shares in the company, valued at $53,739,259.68. The trade was a 32.96% 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 stock in a transaction on Tuesday, May 19th. The stock was sold at an average price of $333.31, for a total value of $1,389,236.08. Following the completion of the sale, the director directly owned 24,718 shares in the company, valued at $8,238,756.58. This represents a 14.43% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 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 valued at $63,190,485. 1.10% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Celestica

Several institutional investors have recently modified their holdings of CLS. Vanguard Group Inc. boosted its stake in Celestica by 1.5% during the 4th quarter. Vanguard Group Inc. now owns 4,811,695 shares of the technology company's stock valued at $1,423,333,000 after purchasing an additional 73,022 shares during the period. JPMorgan Chase & Co. increased its stake in shares of Celestica by 24.8% in the fourth quarter. JPMorgan Chase & Co. now owns 4,017,623 shares of the technology company's stock valued at $1,187,650,000 after purchasing an additional 798,782 shares during the period. Northwestern Mutual Wealth Management Co. raised its holdings in shares of Celestica by 5,806,149.2% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 3,657,937 shares of the technology company's stock valued at $1,081,323,000 after buying an additional 3,657,874 shares during the last quarter. Arrowstreet Capital Limited Partnership raised its holdings in shares of Celestica by 471.5% during the third quarter. Arrowstreet Capital Limited Partnership now owns 3,146,928 shares of the technology company's stock valued at $775,133,000 after buying an additional 2,596,318 shares during the last quarter. Finally, Franklin Resources Inc. boosted its position in shares of Celestica by 18.6% during the fourth quarter. Franklin Resources Inc. now owns 2,278,214 shares of the technology company's stock worth $673,471,000 after buying an additional 356,797 shares during the period. 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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