Celestica (NYSE:CLS) Trading Down 8.9% - Should You Sell?

Key Points

• Celestica shares fell 8.9% in mid-day trading Friday, with the stock dropping as low as $303.72 after closing at $334.75 the prior day.
• Despite the selloff, analysts remain constructive: the stock has a consensus Buy rating and a consensus price target of $427.42, with several firms recently raising their targets.
• Celestica’s latest results showed strong year-over-year growth, including EPS of $2.16 versus $1.20 a year earlier and revenue up 52.8%, while insiders have also been selling shares recently.

Shares of Celestica, Inc. (NYSE:CLS - Get Free Report) TSE: CLS were down 8.9% during mid-day trading on Friday . The company traded as low as $303.72 and last traded at $305.0530. 2,129,362 shares changed hands during mid-day trading, a decline of 8% from the average daily volume of 2,322,449 shares. The stock had previously closed at $334.75.

Analyst Upgrades and Downgrades

A number of analysts recently commented on the stock. UBS Group upped their price objective on shares of Celestica from $355.00 to $400.00 and gave the company a "neutral" rating in a research report on Wednesday, April 29th. Stifel Nicolaus set a $445.00 price objective on Celestica in a research report on Tuesday, April 28th. Royal Bank Of Canada increased their target price on Celestica from $400.00 to $440.00 and gave the stock an "outperform" rating in a research note on Wednesday, April 29th. Bank of America raised their target price on shares of Celestica from $400.00 to $430.00 and gave the stock a "buy" rating in a report on Monday, April 20th. Finally, TD Securities raised shares of Celestica from a "hold" rating to a "buy" rating and set a $430.00 price target 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 assigned a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Buy" and a consensus target price of $427.42.

Celestica Price Performance

The firm has a market cap of $35.07 billion, a price-to-earnings ratio of 36.89, a PEG ratio of 0.78 and a beta of 2.05. The company's fifty day moving average is $363.13 and its 200 day moving average is $332.42. The company has a quick ratio of 0.73, a current ratio of 1.26 and a debt-to-equity ratio of 0.36.

Celestica (NYSE:CLS - Get Free Report) TSE: CLS last issued its quarterly earnings results on Monday, April 27th. The technology company reported $2.16 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.08 by $0.08. Celestica had a net margin of 6.95% and a return on equity of 36.91%. The firm had revenue of $3.96 billion for the quarter, compared to analyst estimates of $3.97 billion. During the same period in the previous year, the business earned $1.20 EPS. The company's revenue was up 52.8% compared to the same quarter last year. 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 research analysts predict that Celestica, Inc. will post 9.57 EPS for the current year.

Insider Buying and Selling

In other Celestica news, CFO Mandeep Chawla sold 17,000 shares of the business's stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $399.65, for a total transaction of $6,794,050.00. Following the transaction, the chief financial officer owned 82,444 shares of the company's stock, valued at $32,948,744.60. The trade was a 17.10% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO Robert Mionis sold 18,176 shares of the company's stock in a transaction that occurred on Wednesday, June 17th. The stock was sold at an average price of $385.17, for a total value of $7,000,849.92. Following the sale, the chief executive officer owned 60,384 shares in the company, valued at approximately $23,258,105.28. This represents a 23.14% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 161,168 shares of company stock worth $63,190,485. Corporate insiders own 1.10% of the company's stock.

Institutional Trading of Celestica

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Spire Wealth Management grew its holdings in shares of Celestica by 354.3% during the 4th quarter. Spire Wealth Management now owns 5,979 shares of the technology company's stock worth $1,767,000 after purchasing an additional 4,663 shares in the last quarter. CIBC Asset Management Inc grew its stake in Celestica by 7.7% during the fourth quarter. CIBC Asset Management Inc now owns 436,922 shares of the technology company's stock worth $129,499,000 after buying an additional 31,086 shares in the last quarter. Norges Bank bought a new position in Celestica in the 4th quarter valued at about $456,511,000. Marietta Investment Partners LLC bought a new position in Celestica in the 4th quarter valued at about $1,273,000. Finally, BW Gestao de Investimentos Ltda. raised its position in shares of Celestica by 29.9% in the 4th quarter. BW Gestao de Investimentos Ltda. now owns 31,179 shares of the technology company's stock valued at $9,217,000 after buying an additional 7,179 shares in the last quarter. 67.38% of the stock is owned by 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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