Celestica (NYSE:CLS) Trading Down 6.1% - Should You Sell?

Key Points

• Celestica's stock price dropped by 6.1% to $243.91, significantly lower than the previous close of $259.78. The trading volume also fell by 33% compared to its average volume.
• Brokerages have recently updated their ratings on Celestica, with TD Securities downgrading it from "buy" to "hold" while raising the price target from $130.00 to $238.00, reflecting mixed sentiment in the market.
• The company reported a 21.0% year-over-year revenue increase, with quarterly earnings of $1.39 EPS, surpassing analysts' expectations of $1.23 EPS, indicating strong financial performance despite the recent stock decline.

Shares of Celestica, Inc. (NYSE:CLS - Get Free Report) TSE: CLS fell 6.1% on Friday . The stock traded as low as $243.71 and last traded at $243.91. 2,745,803 shares were traded during mid-day trading, a decline of 33% from the average session volume of 4,083,967 shares. The stock had previously closed at $259.78.

Analyst Ratings Changes

Several brokerages recently weighed in on CLS. TD Securities cut Celestica from a "buy" rating to a "hold" rating and upped their price target for the stock from $130.00 to $238.00 in a research note on Friday, October 3rd. UBS Group reissued a "neutral" rating and issued a $208.00 target price (up from $101.00) on shares of Celestica in a report on Wednesday, July 30th. CICC Research initiated coverage on Celestica in a report on Tuesday, August 19th. They issued an "outperform" rating on the stock. BNP Paribas reissued an "outperform" rating and issued a $300.00 target price on shares of Celestica in a report on Thursday, September 25th. Finally, Barclays boosted their target price on Celestica from $146.00 to $220.00 and gave the stock an "overweight" rating in a report on Wednesday, July 30th. One research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and four have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $207.38.

Celestica Stock Performance

The company has a debt-to-equity ratio of 0.48, a current ratio of 1.44 and a quick ratio of 0.86. The business has a 50-day simple moving average of $223.32 and a 200 day simple moving average of $155.17. The firm has a market cap of $28.06 billion, a PE ratio of 52.79 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 EPS for the quarter, topping analysts' consensus estimates of $1.23 by $0.16. Celestica had a return on equity of 28.23% and a net margin of 5.11%.The business had revenue of $2.89 billion during the quarter, compared to analysts' expectations of $2.65 billion. During the same quarter in the prior year, the business posted $0.91 earnings per share. The business's quarterly revenue was up 21.0% on a year-over-year basis. Celestica has set its Q3 2025 guidance at 1.370-1.530 EPS. FY 2025 guidance at 5.500-5.500 EPS. Equities research analysts forecast that Celestica, Inc. will post 4.35 EPS for the current year.

Hedge Funds Weigh In On Celestica

Several institutional investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. grew its holdings in Celestica by 0.8% during the 1st quarter. Vanguard Group Inc. now owns 4,514,605 shares of the technology company's stock valued at $356,135,000 after buying an additional 35,690 shares in the last quarter. Voya Investment Management LLC grew its holdings in Celestica by 362.8% during the 1st quarter. Voya Investment Management LLC now owns 1,854,085 shares of the technology company's stock valued at $146,122,000 after buying an additional 1,453,473 shares in the last quarter. Franklin Resources Inc. lifted its stake in shares of Celestica by 25.8% in the 2nd quarter. Franklin Resources Inc. now owns 1,833,205 shares of the technology company's stock valued at $286,184,000 after purchasing an additional 375,910 shares during the last quarter. Connor Clark & Lunn Investment Management Ltd. lifted its stake in shares of Celestica by 17.6% in the 2nd quarter. Connor Clark & Lunn Investment Management Ltd. now owns 1,733,686 shares of the technology company's stock valued at $271,045,000 after purchasing an additional 259,504 shares during the last quarter. Finally, Norges Bank bought a new stake in shares of Celestica in the 2nd quarter valued at approximately $236,069,000. Hedge funds and other institutional investors own 67.38% of the company's stock.

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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