First Trust Advisors LP Buys 3,818 Shares of Celestica, Inc. $CLS

Key Points

• First Trust Advisors increased its Celestica position by 6.5% in the first quarter, adding 3,818 shares to hold 62,944 shares valued at approximately $17.7 million. Institutional investors collectively own 67.38% of CLS.
• Celestica delivered a strong second quarter, with revenue rising 62.4% year over year to $4.68 billion and EPS of $2.54, beating expectations. Management raised its outlook amid robust demand for cloud connectivity, networking, storage and AI infrastructure.
• Analysts remain bullish, with a “Moderate Buy” consensus and an average price target of $437, though CLS faces valuation and volatility risks after its AI-driven rally; shares opened at $327.16 and insiders have sold substantial stock in recent months.

First Trust Advisors LP lifted its position in Celestica, Inc. (NYSE:CLS - Free Report) TSE: CLS by 6.5% during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 62,944 shares of the technology company's stock after acquiring an additional 3,818 shares during the period. First Trust Advisors LP owned approximately 0.05% of Celestica worth $17,744,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also bought and sold shares of CLS. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC acquired a new position in Celestica during the fourth quarter valued at approximately $28,000. Swiss RE Ltd. acquired a new stake in Celestica in the fourth quarter worth $29,000. Cullen Frost Bankers Inc. acquired a new stake in Celestica in the fourth quarter worth $30,000. Sittner & Nelson LLC bought a new position in shares of Celestica during the fourth quarter worth $31,000. Finally, Ascentis Independent Advisors bought a new position in shares of Celestica during the first quarter worth $29,000. Institutional investors own 67.38% of the company's stock.

Analysts Set New Price Targets

CLS has been the subject of a number of recent analyst reports. Zacks Research upgraded shares of Celestica from a "hold" rating to a "strong-buy" rating in a research report on Friday, June 26th. Rothschild & Co Redburn started coverage on Celestica in a research note on Friday, May 1st. They issued a "buy" rating and a $460.00 target price for the company. JPMorgan Chase & Co. increased their price target on Celestica from $445.00 to $485.00 and gave the stock an "overweight" rating in a report on Wednesday. Weiss Ratings downgraded Celestica from a "buy (b)" rating to a "buy (b-)" rating in a report on Thursday, July 16th. Finally, Wolfe Research raised their price target on Celestica from $425.00 to $475.00 and gave the stock an "outperform" rating in a research report on Wednesday. One research analyst has rated the stock with a Strong Buy rating, twenty have issued a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $437.00.

Key Celestica News

Here are the key news stories impacting Celestica this week:

• Positive Sentiment: Strong Q2 earnings beat: Celestica reported approximately $4.7 billion in revenue, up 62% year over year, and adjusted EPS of $2.54, exceeding expectations of $2.29. The results were driven by robust demand in cloud connectivity, networking, storage and AI infrastructure. CLS Q2 Earnings Beat Estimates on Strong CCS Demand, Outlook Raised
• Positive Sentiment: Guidance and long-term growth improved: Management raised its 2026 outlook and indicated that growth could accelerate further in 2027 as hyperscaler customers ramp production. The Connectivity & Cloud Solutions segment grew 84% year over year, supporting expectations for sustained AI-related demand and potential margin expansion. CLS Shows How AI Networking is Reshaping Electronics Manufacturing
• Positive Sentiment: Analysts raised targets: RBC increased its target to $450 and maintained an “outperform” rating, while JPMorgan raised its target to $485 and assigned an “overweight” rating. These targets imply substantial upside and reinforce bullish sentiment toward Celestica’s AI infrastructure exposure.
• Neutral Sentiment: Wall Street remains bullish, but recommendations have limitations: Consensus ratings favor buying CLS, although analyst ratings can be overly optimistic and do not eliminate execution or cyclical-demand risks. Is It Worth Investing in Celestica Based on Wall Street's Bullish Views?
• Negative Sentiment: Valuation and momentum risks are weighing on the stock: After a substantial rally tied to AI infrastructure, CLS trades at a relatively rich earnings multiple. Investors may be locking in gains and questioning whether continued earnings growth can justify the valuation, particularly with the shares remaining highly volatile and well below their 52-week high.

Celestica Stock Down 6.6%

Shares of CLS stock opened at $327.16 on Thursday. The firm has a fifty day moving average of $361.45 and a 200-day moving average of $333.18. The company has a quick ratio of 0.73, a current ratio of 1.23 and a debt-to-equity ratio of 0.32. Celestica, Inc. has a 12-month low of $173.23 and a 12-month high of $474.02. The company has a market capitalization of $37.61 billion, a price-to-earnings ratio of 34.01, a P/E/G ratio of 0.81 and a beta of 2.05.

Celestica (NYSE:CLS - Get Free Report) TSE: CLS last issued its quarterly earnings data on Monday, July 27th. The technology company reported $2.54 EPS for the quarter, topping analysts' consensus estimates of $2.29 by $0.25. The business had revenue of $4.68 billion for the quarter, compared to analyst estimates of $4.30 billion. Celestica had a net margin of 7.16% and a return on equity of 39.96%. The firm's quarterly revenue was up 62.4% on a year-over-year basis. During the same period last year, the business posted $1.39 earnings per share. Celestica has set its FY 2026 guidance at 11.300-11.300 EPS and its Q3 2026 guidance at 2.880-3.080 EPS. As a group, equities research analysts predict that Celestica, Inc. will post 9.57 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, CFO Mandeep Chawla sold 17,000 shares of the business's stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $399.65, for a total value of $6,794,050.00. Following the sale, the chief financial officer directly owned 82,444 shares in the company, valued at $32,948,744.60. The trade was a 17.10% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Michael Max Wilson sold 4,168 shares of the company's stock in a transaction dated 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 transaction, the director directly owned 24,718 shares of the company's stock, valued at $8,238,756.58. This represents a 14.43% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders sold 161,168 shares of company stock worth $63,190,485. Corporate insiders own 1.10% of the company's stock.

Celestica Profile

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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