Celestica (NYSE:CLS) Trading Up 1.1% - Time to Buy?

Key Points

• Celestica raised approximately $3 billion through a 11.1 million-share offering priced at $310 per share to expand capacity for AI infrastructure, data-center and networking demand. The offering is expected to cause roughly 8.4%–10% near-term dilution and create EPS headwinds.
• The company reported strong quarterly results, with revenue up 62.4% year over year and EPS of $2.54 versus the $2.29 consensus estimate. Analysts remain broadly bullish, with a “Moderate Buy” consensus rating and an average price target of $435.80.
• Shares rose 1.1% to about $317.89 in mid-day trading, but insider selling—including roughly $55.1 million by the CEO and $6.0 million by the CFO—could weigh on investor sentiment.

Celestica, Inc. (NYSE:CLS - Get Free Report) TSE: CLS rose 1.1% during mid-day trading on Friday . The company traded as high as $319.48 and last traded at $317.8940. 3,283,891 shares changed hands during trading, an increase of 33% from the average daily volume of 2,459,930 shares. The stock had previously closed at $314.53.

Key Headlines Impacting Celestica

Here are the key news stories impacting Celestica this week:

• Positive Sentiment: Celestica completed the sale of 11,129,031 common shares, including the underwriters’ full option, at $310 per share. The approximately $3 billion in gross proceeds are intended to expand capacity and fund investments supporting strong, multiyear demand for AI infrastructure, data-center and networking products. Celestica Completes Equity Offering
• Positive Sentiment: Recent coverage emphasized accelerating AI networking-switch revenue, gross-margin expansion and planned capital expenditures of roughly $1 billion. If successful, the investment could allow Celestica to meet hyperscaler demand and extend its growth runway. Celestica Just Unloaded Bad News - Buy It
• Positive Sentiment: Jim Cramer reaffirmed a bullish view following the pullback from Celestica’s 52-week high. The article also noted that 18 of 19 covering Wall Street analysts held Buy or Strong Buy ratings, supporting the longer-term investment case. Jim Cramer Reaffirms Buy Stance
• Neutral Sentiment: The offering strengthens Celestica’s balance sheet and finances expansion, but the newly issued shares are expected to create roughly 8.4%–10% near-term dilution. The longer-term benefit depends on whether additional capacity produces sufficient returns. Celestica’s $3 Billion Raise
• Negative Sentiment: Investors reacted poorly to the discounted issuance because the higher share count may reduce per-share earnings and create EPS headwinds. The financing announcement prompted a sharp decline in the stock, while some analysts adopted more cautious views on valuation. Celestica Shares Slide After Equity Offering
• Negative Sentiment: CEO Robert Mionis sold approximately $55.1 million of stock across August 4–5, while CFO Mandeep Chawla sold approximately $6.0 million on August 4. The insider selling may weigh on sentiment, although the transactions do not necessarily indicate a change in business outlook.

Wall Street Analysts Forecast Growth

A number of research analysts have recently weighed in on CLS shares. The Goldman Sachs Group restated a "buy" rating and issued a $475.00 target price on shares of Celestica in a report on Tuesday, April 28th. Zacks Research raised shares of Celestica from a "hold" rating to a "strong-buy" rating in a research report on Friday, June 26th. Citigroup upped their price objective on shares of Celestica from $338.00 to $415.00 and gave the stock a "buy" rating in a research report on Wednesday, April 29th. Rothschild & Co Redburn initiated coverage on shares of Celestica in a research report on Friday, May 1st. They set a "buy" rating and a $460.00 target price on the stock. Finally, Barclays dropped their price target on Celestica from $430.00 to $406.00 and set an "overweight" rating on the stock in a report on Friday. One analyst has rated the stock with a Strong Buy rating, twenty have assigned a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat.com, Celestica currently has an average rating of "Moderate Buy" and a consensus price target of $435.80.

Celestica Price Performance

The stock has a market cap of $36.55 billion, a P/E ratio of 33.05 and a beta of 2.06. The company has a quick ratio of 0.68, a current ratio of 1.23 and a debt-to-equity ratio of 0.32. The business's 50-day simple moving average is $359.62 and its two-hundred day simple moving average is $334.56.

Celestica (NYSE:CLS - Get Free Report) TSE: CLS last released its quarterly earnings data on Monday, July 27th. The technology company reported $2.54 EPS for the quarter, topping the consensus estimate of $2.29 by $0.25. The company had revenue of $4.68 billion during the quarter, compared to the consensus estimate of $4.30 billion. Celestica had a net margin of 7.16% and a return on equity of 39.96%. Celestica's revenue for the quarter was up 62.4% on a year-over-year basis. During the same period last year, the firm earned $1.39 EPS. Celestica has set its FY 2026 guidance at 11.300-11.300 EPS and its Q3 2026 guidance at 2.880-3.080 EPS. Sell-side analysts expect that Celestica, Inc. will post 9.97 EPS for the current year.

Insider Activity

In other Celestica news, CEO Robert Mionis sold 51,061 shares of the firm's stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $368.41, for a total value of $18,811,383.01. Following the completion of the transaction, the chief executive officer directly owned 46,892 shares of the company's stock, valued at $17,275,481.72. This trade represents a 52.13% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Michael Max Wilson sold 4,168 shares of the stock in a transaction on Tuesday, May 19th. The stock was 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 owned 24,718 shares in the company, valued at $8,238,756.58. This trade represents a 14.43% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 337,225 shares of company stock worth $128,112,965 over the last ninety days. Company insiders own 1.10% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of CLS. Vanguard Group Inc. lifted its stake in shares of Celestica by 1.5% in the 4th quarter. Vanguard Group Inc. now owns 4,811,695 shares of the technology company's stock valued at $1,423,333,000 after acquiring an additional 73,022 shares during the last quarter. JPMorgan Chase & Co. grew its holdings in shares of Celestica by 24.8% in the fourth quarter. JPMorgan Chase & Co. now owns 4,017,623 shares of the technology company's stock worth $1,187,650,000 after purchasing an additional 798,782 shares during the last quarter. Northwestern Mutual Wealth Management Co. increased its stake in shares of Celestica by 5,806,149.2% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 3,657,937 shares of the technology company's stock worth $1,081,323,000 after buying an additional 3,657,874 shares during the period. Franklin Resources Inc. raised its holdings in Celestica by 18.6% during the 4th quarter. Franklin Resources Inc. now owns 2,278,214 shares of the technology company's stock valued at $673,471,000 after buying an additional 356,797 shares during the last quarter. Finally, Cibc World Market Inc. grew its holdings in Celestica by 30.6% in the 4th quarter. Cibc World Market Inc. now owns 2,265,680 shares of the technology company's stock worth $670,279,000 after acquiring an additional 530,535 shares during the last quarter. Hedge funds and other institutional investors own 67.38% of the company's stock.

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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