Celestica (NYSE:CLS) Shares Climb 8.2% - Should You Buy?

Key Points

• Celestica shares rose 8.2% to about $223.62, with trading volume 84% above its average.
• Analysts broadly favor the stock: 23 of 24 rate it Buy or Strong Buy, and the consensus price target is $445.14.
• The company beat quarterly estimates, reporting EPS of $3.30 versus $3.02 expected and revenue of $5.74 billion versus $5.39 billion; insiders have also sold shares worth about $24.3 million over the past 90 days.

Celestica, Inc. (NYSE:CLS - Get Free Report) TSE: CLS shares traded up 8.2% during trading on Monday. The stock traded as high as $225.26 and last traded at $223.6240. 4,631,549 shares were traded during mid-day trading, an increase of 84% from the average session volume of 2,518,304 shares. The stock had previously closed at $206.68.

Analysts Set New Price Targets

CLS has been the topic of a number of recent research reports. Wall Street Zen raised Celestica from a "hold" rating to a "buy" rating in a report on Saturday. Citigroup boosted their price target on Celestica from $415.00 to $436.00 and gave the company a "buy" rating in a research note on Wednesday, October 28th. FBN Securities assumed coverage on Celestica in a research note on Tuesday, September 15th. They set an "outperform" rating and a $375.00 price target for the company. Sanford C. Bernstein reduced their price target on shares of Celestica from $495.00 to $340.00 and set an "outperform" rating for the company in a research report on Monday. Finally, UBS Group increased their price objective on shares of Celestica from $430.00 to $453.00 and gave the stock a "buy" rating in a research note on Wednesday, October 28th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-one have given a Buy rating and one has given a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Buy" and a consensus price target of $445.14.

Celestica Trading Up 8.2%

The company has a current ratio of 1.61, a quick ratio of 1.03 and a debt-to-equity ratio of 0.13. The company has a fifty day simple moving average of $317.31 and a 200-day simple moving average of $329.19. The company has a market capitalization of $28.20 billion, a PE ratio of 21.16, a PEG ratio of 1.45 and a beta of 2.11.

Celestica (NYSE:CLS - Get Free Report) TSE: CLS last issued its earnings results on Monday, October 26th. The technology company reported $3.30 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.02 by $0.28. Celestica had a return on equity of 33.80% and a net margin of 6.83%. The business had revenue of $5.74 billion during the quarter, compared to the consensus estimate of $5.39 billion. Analysts predict that Celestica, Inc. will post 10.97 EPS for the current year.

Insider Activity at Celestica

In other news, CEO Robert Mionis sold 23,496 shares of the stock in a transaction dated Thursday, August 13th. The stock was sold at an average price of $362.39, for a total transaction of $8,514,715.44. Following the transaction, the chief executive officer owned 23,396 shares of the company's stock, valued at approximately $8,478,476.44. This represents a 50.11% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, President Todd C. Cooper sold 20,118 shares of the company's stock in a transaction that occurred on Wednesday, September 23rd. The stock was sold at an average price of $360.00, for a total value of $7,242,480.00. Following the sale, the president directly owned 73,252 shares of the company's stock, valued at $26,370,720. The trade was a 21.55% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 67,010 shares of company stock worth $24,278,487. Insiders own 1.10% of the company's stock.

Institutional Investors Weigh In On Celestica

Hedge funds and other institutional investors have recently made changes to their positions in the business. Cibc World Market Inc. acquired a new stake in Celestica in the second quarter valued at about $757,811,000. Connor Clark & Lunn Investment Management Ltd. acquired a new position in Celestica during the 2nd quarter worth about $674,199,000. Bank of America Corp DE acquired a new position in shares of Celestica in the 2nd quarter worth approximately $444,899,000. The Manufacturers Life Insurance Company bought a new stake in Celestica during the second quarter valued at $351,717,000. Finally, Legal & General Group Plc bought a new stake in Celestica in the second quarter worth approximately $333,588,000. 67.38% of the stock is owned by institutional investors and hedge funds.

About Celestica

Celestica Inc is a global provider of design, manufacturing, and supply chain services for companies across technology and industrial markets. Its work spans product development, engineering, manufacturing, testing, and ongoing product support.

The company's offerings include hardware and infrastructure used in cloud computing and data centers, communications networks, aerospace and defense, industrial equipment, and health technology. It also provides supply chain management and other services to support products throughout their lifecycle.

Celestica traces its roots to IBM's manufacturing operations and became an independent company in 1996.

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