Celestica (NYSE:CLS) Trading Down 9.9% - Here's What Happened

Key Points

• Shares fell 9.9% intraday to as low as $278.85 (last $281.6550) from a prior close of $312.48, on 4.44 million shares traded—about 12% above average volume.
• Analysts have been upgrading Celestica and raising targets (CIBC to $400, JPMorgan to $360, Barclays to $359), leaving an average price target of $336.13 and a consensus rating of "Moderate Buy."
• Celestica beat the quarter with EPS of $1.58 versus $1.45 expected and revenue of $3.19 billion versus $3.01 billion expected, a 27.8% year‑over‑year revenue increase and a 6.35% net margin.

Celestica, Inc. (NYSE:CLS - Get Free Report) TSE: CLS shares traded down 9.9% during mid-day trading on Thursday . The stock traded as low as $278.85 and last traded at $281.6550. 4,443,603 shares changed hands during trading, an increase of 12% from the average session volume of 3,984,316 shares. The stock had previously closed at $312.48.

Analyst Upgrades and Downgrades

Several brokerages have recently issued reports on CLS. CIBC lifted their target price on shares of Celestica from $315.00 to $400.00 and gave the company an "outperform" rating in a research report on Wednesday, October 29th. Barclays lifted their price objective on Celestica from $357.00 to $359.00 and gave the stock an "overweight" rating in a report on Friday, November 14th. JPMorgan Chase & Co. boosted their price objective on Celestica from $295.00 to $360.00 and gave the stock an "overweight" rating in a research note on Wednesday, October 29th. Weiss Ratings restated a "buy (b)" rating on shares of Celestica in a research report on Wednesday, October 8th. Finally, BNP Paribas reaffirmed an "outperform" rating and issued a $300.00 price target on shares of Celestica in a research note on Thursday, September 25th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat.com, Celestica currently has an average rating of "Moderate Buy" and an average target price of $336.13.

Celestica Stock Down 9.9%

The company has a debt-to-equity ratio of 0.37, a quick ratio of 0.86 and a current ratio of 1.47. The business has a 50 day simple moving average of $281.26 and a 200-day simple moving average of $201.51. The firm has a market capitalization of $32.39 billion, a price-to-earnings ratio of 45.72 and a beta of 1.85.

Celestica (NYSE:CLS - Get Free Report) TSE: CLS last announced its quarterly earnings data on Monday, October 27th. The technology company reported $1.58 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.45 by $0.13. Celestica had a net margin of 6.35% and a return on equity of 30.53%. The firm had revenue of $3.19 billion during the quarter, compared to analyst estimates of $3.01 billion. During the same quarter in the prior year, the firm posted $1.04 earnings per share. Celestica's quarterly revenue was up 27.8% on a year-over-year basis. On average, equities analysts expect that Celestica, Inc. will post 4.35 EPS for the current year.

Insider Activity

In other news, Director Laurette T. Koellner purchased 6,000 shares of Celestica stock in a transaction dated Thursday, October 30th. The shares were purchased at an average price of $341.67 per share, with a total value of $2,050,020.00. Following the transaction, the director owned 6,000 shares in the company, valued at $2,050,020. This represents a ∞ increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.52% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. Jones Financial Companies Lllp increased its stake in shares of Celestica by 1,103.8% during the first quarter. Jones Financial Companies Lllp now owns 24,486 shares of the technology company's stock worth $1,930,000 after buying an additional 22,452 shares during the period. Thompson Davis & CO. Inc. acquired a new position in Celestica during the 2nd quarter worth approximately $328,000. Y Intercept Hong Kong Ltd increased its position in shares of Celestica by 406.3% in the 2nd quarter. Y Intercept Hong Kong Ltd now owns 52,606 shares of the technology company's stock valued at $8,212,000 after purchasing an additional 42,215 shares during the last quarter. Fortis Capital Advisors LLC purchased a new stake in shares of Celestica in the 2nd quarter valued at approximately $343,000. Finally, Think Investments LP acquired a new stake in shares of Celestica in the 1st quarter valued at $14,939,000. 67.38% of the stock is currently owned by hedge funds and other institutional investors.

Celestica Company Profile

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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