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Celestica (NYSE:CLS) Trading Down 3.2% - Should You Sell?

Celestica logo with Computer and Technology background

Key Points

  • Celestica Inc. (NYSE:CLS) saw a 3.2% drop in stock price, trading between $261.48 and $264.80, with volume significantly lower than its average.
  • Several brokerages have increased their price targets for Celestica, with Goldman Sachs setting a price target of $340.00 and BMO Capital Markets at $300.00, while TD Securities downgraded their rating from "buy" to "hold."
  • The company reported a 21% year-over-year revenue increase of $2.89 billion for the last quarter, exceeding analyst estimates, alongside a positive earnings per share outlook for FY 2025.
  • Five stocks to consider instead of Celestica.

Celestica, Inc. (NYSE:CLS - Get Free Report) TSE: CLS dropped 3.2% during trading on Tuesday . The stock traded as low as $261.48 and last traded at $264.80. Approximately 1,806,249 shares traded hands during mid-day trading, a decline of 55% from the average daily volume of 4,044,281 shares. The stock had previously closed at $273.50.

Analyst Upgrades and Downgrades

A number of brokerages recently weighed in on CLS. Barclays increased their price objective on shares of Celestica from $146.00 to $220.00 and gave the company an "overweight" rating in a research report on Wednesday, July 30th. The Goldman Sachs Group started coverage on Celestica in a research note on Thursday, October 16th. They issued a "buy" rating and a $340.00 price target on the stock. JPMorgan Chase & Co. increased their target price on Celestica from $225.00 to $295.00 and gave the company an "overweight" rating in a report on Monday, September 8th. BMO Capital Markets upped their price target on shares of Celestica from $230.00 to $300.00 and gave the company an "outperform" rating in a research report on Tuesday, October 14th. Finally, TD Securities downgraded shares of Celestica from a "buy" rating to a "hold" rating and raised their price objective for the stock from $130.00 to $238.00 in a report on Friday, October 3rd. One equities research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $242.93.

Read Our Latest Research Report on CLS

Celestica Stock Down 3.2%

The company has a debt-to-equity ratio of 0.48, a quick ratio of 0.86 and a current ratio of 1.44. The company's 50-day moving average price is $232.28 and its 200 day moving average price is $165.21. The stock has a market capitalization of $30.46 billion, a P/E ratio of 57.32 and a beta of 1.88.

Celestica (NYSE:CLS - Get Free Report) TSE: CLS last issued its quarterly earnings results on Monday, July 28th. The technology company reported $1.39 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.23 by $0.16. The business had revenue of $2.89 billion during the quarter, compared to analyst estimates of $2.65 billion. Celestica had a return on equity of 28.23% and a net margin of 5.11%.Celestica's revenue for the quarter was up 21.0% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.91 EPS. Celestica has set its Q3 2025 guidance at 1.370-1.530 EPS. FY 2025 guidance at 5.500-5.500 EPS. As a group, equities analysts expect that Celestica, Inc. will post 4.35 earnings per share for the current year.

Institutional Investors Weigh In On Celestica

Several institutional investors and hedge funds have recently modified their holdings of CLS. Golden State Wealth Management LLC boosted 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. ORG Partners LLC purchased a new position in Celestica during the 1st quarter valued at approximately $29,000. Center for Financial Planning Inc. bought a new stake in Celestica in the 1st quarter worth approximately $30,000. ST Germain D J Co. Inc. purchased a new stake in shares of Celestica during the 2nd quarter worth approximately $37,000. Finally, Twin Peaks Wealth Advisors LLC purchased a new stake in shares of Celestica during the 2nd quarter worth approximately $40,000. Institutional investors own 67.38% of the company's stock.

About Celestica

(Get Free Report)

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.

Further Reading

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