Celestica (NYSE:CLS) Shares Climb 3% - Should You Buy?

Key Points

• Celestica shares rose 3% to about $357.75, with the stock now valued at approximately $41.13 billion and trading at a P/E ratio of 37.19.
• Analyst sentiment remains favorable, with 23 Buy ratings and one Hold rating; the consensus target price of $450.50 implies further upside, despite recent downgrades from Zacks Research and Wall Street Zen.
• The company reported strong quarterly results, exceeding EPS and revenue estimates while posting 62.4% year-over-year revenue growth. However, insiders sold roughly $89.2 million of stock over the past 90 days.

Shares of Celestica, Inc. (NYSE:CLS - Get Free Report) TSE: CLS were up 3% on Tuesday. The stock traded as high as $358.08 and last traded at $357.7540. 2,009,505 shares changed hands during trading, a decline of 16% from the average session volume of 2,398,718 shares. The stock had previously closed at $347.50.

Wall Street Analyst Weigh In

Several brokerages have commented on CLS. Zacks Research downgraded Celestica from a "strong-buy" rating to a "hold" rating in a research note on Monday, September 28th. UBS Group raised shares of Celestica from a "neutral" rating to a "buy" rating and lifted their price target for the company from $410.00 to $430.00 in a report on Monday, August 24th. Canadian Imperial Bank of Commerce upped their price objective on shares of Celestica from $480.00 to $500.00 and gave the stock an "outperform" rating in a research report on Wednesday, July 29th. BWS Financial restated a "buy" rating on shares of Celestica in a research report on Tuesday, July 28th. Finally, Wall Street Zen downgraded shares of Celestica from a "buy" rating to a "hold" rating in a report on Sunday, September 6th. Twenty-three equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $450.50.

Celestica Trading Up 3.0%

The business's fifty day moving average is $334.16 and its 200-day moving average is $349.60. The company has a debt-to-equity ratio of 0.32, a quick ratio of 0.68 and a current ratio of 1.23. The firm has a market cap of $41.13 billion, a P/E ratio of 37.19 and a beta of 2.01.

Celestica (NYSE:CLS - Get Free Report) TSE: CLS last released its quarterly earnings results on Monday, July 27th. The technology company reported $2.54 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.29 by $0.25. The firm 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%. The company's revenue for the quarter was up 62.4% on a year-over-year basis. During the same quarter last year, the firm earned $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. Analysts predict that Celestica, Inc. will post 10.71 EPS for the current year.

Insider Buying and Selling

In other Celestica news, President Todd C. Cooper sold 20,118 shares of the stock in a transaction that occurred on Wednesday, September 23rd. The shares were sold at an average price of $360.00, for a total transaction of $7,242,480.00. Following the completion of the sale, the president owned 73,252 shares of the company's stock, valued at approximately $26,370,720. This represents a 21.55% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Mandeep Chawla sold 16,117 shares of the firm's stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $369.32, for a total transaction of $5,952,330.44. Following the transaction, the chief financial officer owned 65,444 shares of the company's stock, valued at approximately $24,169,778.08. The trade was a 19.76% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 243,067 shares of company stock valued at $89,200,967 over the last ninety days. 1.10% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in CLS. Terra Nova Asset Management LLC grew its stake in Celestica by 38.1% during the third quarter. Terra Nova Asset Management LLC now owns 1,645 shares of the technology company's stock worth $595,000 after purchasing an additional 454 shares during the period. Integrated Financial Solutions Inc. grew its position in shares of Celestica by 6.3% during the 3rd quarter. Integrated Financial Solutions Inc. now owns 2,110 shares of the technology company's stock worth $765,000 after buying an additional 125 shares during the period. Williams & Novak Wealth Management LLC acquired a new stake in shares of Celestica during the 3rd quarter worth approximately $285,000. Wedmont Private Capital acquired a new stake in shares of Celestica during the 3rd quarter worth approximately $201,000. Finally, Legacy Wealth Asset Management LLC bought a new stake in shares of Celestica in the 3rd quarter valued at $827,000. 67.38% of the stock is owned by institutional investors.

About Celestica

Celestica Inc NYSE: CLS is a global provider of design, manufacturing, and supply-chain services for original equipment manufacturers and other technology companies. The company helps customers develop, produce, deploy, and support complex hardware and electronic systems, serving industries such as communications, enterprise technology, aerospace and defense, industrial technology, health care, and semiconductor equipment.

Its services include product design and engineering, printed circuit board and systems assembly, manufacturing, testing, logistics, aftermarket support, and supply-chain management.

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.