Principal Financial Group Inc. Decreases Stock Holdings in Celestica, Inc. $CLS

Key Points

• Principal Financial Group reduced its Celestica stake by 31.1% in the first quarter, selling 4,600 shares and retaining 10,200 shares worth approximately $2.87 million. Institutional investors still own 67.38% of the company.
• Celestica reported strong quarterly results, with revenue rising 62.4% year over year to $4.68 billion and EPS of $2.54, beating the $2.29 consensus estimate. Analysts remain broadly bullish, with a “Moderate Buy” consensus rating and an average price target of $437.
• Despite strong AI-infrastructure-driven growth, valuation and volatility remain risks; the stock trades at a P/E ratio of 34.01 and remains well below its 52-week high. Company insiders also sold 161,168 shares worth roughly $63.2 million during the latest quarter.

Principal Financial Group Inc. cut its holdings in Celestica, Inc. (NYSE:CLS - Free Report) TSE: CLS by 31.1% in the first quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 10,200 shares of the technology company's stock after selling 4,600 shares during the quarter. Principal Financial Group Inc.'s holdings in Celestica were worth $2,868,000 at the end of the most recent quarter.

A number of other hedge funds also recently bought and sold shares of CLS. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC purchased a new position in shares of Celestica in the 4th quarter worth $28,000. Ascentis Independent Advisors bought a new stake in shares of Celestica in the 1st quarter valued at approximately $29,000. Swiss RE Ltd. bought a new position in shares of Celestica during the 4th quarter valued at approximately $29,000. Cullen Frost Bankers Inc. purchased a new position in Celestica during the fourth quarter worth $30,000. Finally, Sittner & Nelson LLC bought a new position in Celestica during the fourth quarter valued at $31,000. Hedge funds and other institutional investors own 67.38% of the company's stock.

Analyst Upgrades and Downgrades

Several equities analysts recently commented on the stock. Stifel Nicolaus set a $500.00 price target on shares of Celestica in a report on Tuesday. Weiss Ratings cut Celestica from a "buy (b)" rating to a "buy (b-)" rating in a report on Thursday, July 16th. TD Cowen upgraded Celestica from a "hold" rating to a "buy" rating and increased their target price for the stock from $350.00 to $430.00 in a research note on Wednesday, April 29th. BWS Financial reiterated a "buy" rating on shares of Celestica in a research note on Tuesday. Finally, UBS Group reiterated a "neutral" rating and set a $410.00 target price on shares of Celestica in a research report on Wednesday. One equities research analyst has rated the stock with a Strong Buy rating, twenty have assigned a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $437.00.

Celestica Stock Performance

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

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

Insider Transactions at Celestica

In other news, Director Michael Max Wilson sold 4,168 shares of the stock in a transaction that occurred on Tuesday, May 19th. The shares were sold at an average price of $333.31, for a total transaction of $1,389,236.08. Following the transaction, the director directly owned 24,718 shares in the company, valued at approximately $8,238,756.58. This trade represents a 14.43% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Robert Mionis sold 18,176 shares of Celestica stock in a transaction that occurred on Wednesday, June 17th. The shares were sold at an average price of $385.17, for a total transaction of $7,000,849.92. Following the transaction, the chief executive officer directly owned 60,384 shares in the company, valued at approximately $23,258,105.28. The trade was a 23.14% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 161,168 shares of company stock valued at $63,190,485. Company insiders own 1.10% of the company's stock.

More 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.

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.

Want to see what other hedge funds are holding CLS? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Celestica, Inc. (NYSE:CLS - Free Report) TSE: CLS.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.