Celestica (TSE:CLS) Stock Price Down 13% - Should You Sell?

Key Points

• Shares fell about 13% intraday to C$501.93 from a C$576.75 close, with trading volume (~294,198 shares) roughly 45% below the recent daily average.
• Analysts are mostly bullish—six rate Celestica a "Strong Buy" and one a Hold—yet the MarketBeat consensus target is only C$305.00, well below the current share price.
• Latest quarter: C$3.00 EPS and C$5.63 billion revenue, with a strong ROE (44.13%) but a high P/E of 68.39 and a market cap around C$56.3 billion, signaling elevated valuation despite solid profitability.

Celestica Inc. (TSE:CLS - Get Free Report) NYSE: CLS's stock price was down 13% during mid-day trading on Tuesday . The company traded as low as C$480.00 and last traded at C$501.93. Approximately 294,198 shares changed hands during trading, a decline of 45% from the average daily volume of 536,067 shares. The stock had previously closed at C$576.75.

Analysts Set New Price Targets

A number of research analysts recently issued reports on CLS shares. TD Securities upgraded Celestica to a "hold" rating in a research note on Wednesday, January 21st. Wolfe Research upgraded Celestica to a "strong-buy" rating in a research note on Tuesday, February 17th. Finally, Susquehanna upgraded Celestica to a "strong-buy" rating in a research note on Wednesday, April 1st. Six research analysts have rated the stock with a Strong Buy rating and one has assigned a Hold rating to the stock. According to MarketBeat.com, Celestica presently has an average rating of "Strong Buy" and a consensus target price of C$305.00.

Celestica Stock Down 15.1%

The firm has a 50 day simple moving average of C$423.63 and a two-hundred day simple moving average of C$424.23. The company has a market capitalization of C$56.30 billion, a PE ratio of 68.39, a P/E/G ratio of 0.14 and a beta of 1.03. The company has a current ratio of 1.44, a quick ratio of 0.54 and a debt-to-equity ratio of 35.04.

Celestica (TSE:CLS - Get Free Report) NYSE: CLS last announced its earnings results on Monday, April 27th. The company reported C$3.00 earnings per share for the quarter. Celestica had a return on equity of 44.13% and a net margin of 6.72%.The company had revenue of C$5.63 billion for the quarter. Research analysts expect that Celestica Inc. will post 5.028804 EPS for the current year.

About Celestica

Celestica Inc offers supply chain solutions. The firm operates in two segments: Advanced Technology Solutions (ATS) and Connectivity & Cloud Solutions (CCS). ATS segment consists of the ATS end market and is comprised of A&D, Industrial, Energy, HealthTech, and Capital Equipment businesses. Capital Equipment business is comprised of our semiconductor, display, and power & signal distribution equipment businesses. CCS segment that derives majority revenue consists of Communications and Enterprise end markets.

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