Celestica (NYSE:CLS) Trading Down 2.8% - Should You Sell?

Key Points

• Celestica shares fell 2.8% to about $302 during mid-day trading, below both its 50-day and 200-day moving averages.
• Analysts remain broadly bullish, with a consensus “Moderate Buy” rating and an average price target of $438.86; several firms recently raised their targets to $450–$475.
• The company beat quarterly earnings and revenue expectations, with EPS of $2.54 and revenue of $4.68 billion, while revenue increased 62.4% year over year. However, insiders sold about $135.2 million of stock over the past 90 days.

Celestica, Inc. (NYSE:CLS - Get Free Report) TSE: CLS dropped 2.8% during mid-day trading on Wednesday . The stock traded as low as $292.50 and last traded at $302.0060. Approximately 2,284,429 shares traded hands during trading, a decline of 8% from the average session volume of 2,474,153 shares. The stock had previously closed at $310.59.

Analysts Set New Price Targets

Several equities analysts have commented on the company. BMO Capital Markets raised their price objective on Celestica from $370.00 to $450.00 and gave the company an "outperform" rating in a research report on Friday, April 24th. Citigroup lifted their price objective on Celestica from $338.00 to $415.00 and gave the company a "buy" rating in a research note on Wednesday, April 29th. Wolfe Research boosted their target price on Celestica from $425.00 to $475.00 and gave the stock an "outperform" rating in a report on Wednesday, July 29th. The Goldman Sachs Group restated a "buy" rating and set a $475.00 price target on shares of Celestica in a report on Tuesday, April 28th. Finally, UBS Group reiterated a "neutral" rating and issued a $410.00 price target on shares of Celestica in a research note on Wednesday, July 29th. One equities research analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $438.86.

Celestica Stock Performance

The company has a market capitalization of $34.72 billion, a PE ratio of 31.39 and a beta of 2.06. The business's fifty day moving average is $346.00 and its two-hundred day moving average is $335.26. The company has a current ratio of 1.23, a quick ratio of 0.68 and a debt-to-equity ratio of 0.32.

Celestica (NYSE:CLS - Get Free Report) TSE: CLS last released its quarterly earnings data on Monday, July 27th. The technology company reported $2.54 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.29 by $0.25. The business had revenue of $4.68 billion for the quarter, compared to analysts' expectations of $4.30 billion. Celestica had a return on equity of 39.96% and a net margin of 7.16%.The firm's quarterly revenue was up 62.4% on a year-over-year basis. During the same period in the prior year, the firm posted $1.39 EPS. Celestica has set its FY 2026 guidance at 11.300-11.300 EPS and its Q3 2026 guidance at 2.880-3.080 EPS. Equities research analysts predict that Celestica, Inc. will post 9.97 earnings per share for the current year.

Insider Buying and Selling at Celestica

In related news, CFO Mandeep Chawla sold 16,117 shares of Celestica stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $369.32, for a total value of $5,952,330.44. Following the completion of the sale, the chief financial officer directly owned 65,444 shares in the company, valued at approximately $24,169,778.08. This trade represents a 19.76% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Robert Mionis sold 23,496 shares of the business's stock in a transaction dated Thursday, August 13th. The stock was sold at an average price of $362.39, for a total value of $8,514,715.44. Following the completion of the transaction, the chief executive officer directly owned 23,396 shares of the company's stock, valued at approximately $8,478,476.44. This trade represents a 50.11% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 356,553 shares of company stock worth $135,238,444 over the last ninety days. 1.10% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in CLS. Wellington Management Group LLP purchased a new stake in Celestica in the second quarter worth approximately $294,573,000. Kingsview Wealth Management LLC bought a new stake in Celestica in the 2nd quarter worth approximately $1,464,000. Beacon Pointe Advisors LLC purchased a new stake in Celestica during the 2nd quarter valued at $369,000. Empowered Funds LLC purchased a new stake in Celestica during the 2nd quarter valued at $322,000. Finally, Equitable Holdings Inc. bought a new position in shares of Celestica during the 2nd quarter valued at $487,000. 67.38% of the stock is owned by hedge funds and other institutional investors.

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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