Celestica (NYSE:CLS) Trading Down 6.6% - Here's What Happened

Key Points

• Celestica shares fell 6.6% on Tuesday, closing at $351.84 after trading as low as $346.52. Trading volume also came in below average at 1.87 million shares.
• Despite the drop, analyst sentiment remains upbeat: several firms recently raised price targets, and the stock now carries a consensus “Moderate Buy” rating with an average target price of $427.42.
• Celestica recently beat quarterly earnings estimates, reporting $2.16 EPS versus $2.08 expected, while revenue rose 52.8% year over year. The company also disclosed recent insider selling, including CEO Robert Mionis selling 18,176 shares.

Celestica, Inc. (NYSE:CLS - Get Free Report) TSE: CLS's stock price dropped 6.6% on Tuesday . The company traded as low as $346.52 and last traded at $351.84. 1,872,701 shares traded hands during trading, a decline of 22% from the average session volume of 2,410,437 shares. The stock had previously closed at $376.84.

Wall Street Analyst Weigh In

Several brokerages have recently issued reports on CLS. 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 report on Wednesday, April 29th. Susquehanna upped their price target on shares of Celestica from $460.00 to $510.00 and gave the stock a "positive" rating in a research report on Wednesday, April 29th. BMO Capital Markets lifted their price objective on Celestica from $370.00 to $450.00 and gave the stock an "outperform" rating in a report on Friday, April 24th. Bank of America boosted their price objective on Celestica from $400.00 to $430.00 and gave the stock a "buy" rating in a research note on Monday, April 20th. Finally, Canadian Imperial Bank of Commerce restated an "outperform" rating and issued a $480.00 target price on shares of Celestica in a research report on Wednesday, April 29th. One 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. According to data from MarketBeat, Celestica currently has an average rating of "Moderate Buy" and an average target price of $427.42.

Celestica Stock Down 6.6%

The firm has a market capitalization of $40.45 billion, a price-to-earnings ratio of 42.54, a P/E/G ratio of 0.87 and a beta of 2.02. The business has a 50 day simple moving average of $384.42 and a 200-day simple moving average of $326.99. The company has a debt-to-equity ratio of 0.36, a quick ratio of 0.73 and a current ratio of 1.26.

Celestica (NYSE:CLS - Get Free Report) TSE: CLS last posted its 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 for 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%. Celestica's 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, equities analysts expect that Celestica, Inc. will post 9.5 EPS for the current year.

Insider Buying and Selling at Celestica

In other news, CEO Robert Mionis sold 18,176 shares of the business's stock in a transaction that occurred on Wednesday, June 17th. The shares were sold at an average price of $385.17, for a total value of $7,000,849.92. Following the sale, the chief executive officer directly owned 60,384 shares of the company's stock, valued at approximately $23,258,105.28. The trade was a 23.14% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Michael Max Wilson sold 4,168 shares of the business's stock in a transaction that occurred on Tuesday, May 19th. The shares were 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 approximately $8,238,756.58. The trade was a 14.43% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 161,168 shares of company stock worth $63,190,485 over the last three months. Insiders own 1.10% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of CLS. Legacy Wealth Managment LLC ID increased its stake in shares of Celestica by 14.4% during the first quarter. Legacy Wealth Managment LLC ID now owns 223 shares of the technology company's stock worth $63,000 after buying an additional 28 shares during the period. Pinney & Scofield Inc. lifted its stake in Celestica by 20.0% in the third quarter. Pinney & Scofield Inc. now owns 180 shares of the technology company's stock worth $44,000 after acquiring an additional 30 shares during the last quarter. Capital Planning LLC lifted its stake in Celestica by 3.2% in the first quarter. Capital Planning LLC now owns 1,025 shares of the technology company's stock worth $289,000 after acquiring an additional 32 shares during the last quarter. LeConte Wealth Management LLC grew its holdings in Celestica by 3.5% during the 4th quarter. LeConte Wealth Management LLC now owns 1,001 shares of the technology company's stock worth $296,000 after acquiring an additional 34 shares in the last quarter. Finally, PCB Capital LLC grew its holdings in Celestica by 3.5% during the 1st quarter. PCB Capital LLC now owns 995 shares of the technology company's stock worth $280,000 after acquiring an additional 34 shares in the last quarter. 67.38% of the stock is currently 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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