Celestica (NYSE:CLS) Shares Down 2.4% - What's Next?

Key Points

• Celestica shares fell 2.4% to about $325.51 in midday trading, with volume 52% below the average daily level.
• Analysts remain broadly bullish, with an average “Buy” rating and a consensus price target of $439.81; recent targets range from $406 to $485.
• Celestica reported strong quarterly results, beating EPS and revenue estimates while revenue rose 62.4% year over year. However, insiders have sold approximately $135.2 million of stock over the past 90 days.

Celestica, Inc. (NYSE:CLS - Get Free Report) TSE: CLS's share price dropped 2.4% during mid-day trading on Thursday . The company traded as low as $322.07 and last traded at $325.5120. Approximately 1,169,079 shares traded hands during mid-day trading, a decline of 52% from the average daily volume of 2,441,087 shares. The stock had previously closed at $333.60.

Analysts Set New Price Targets

CLS has been the topic of a number of recent research reports. Bank of America reiterated a "buy" rating on shares of Celestica in a report on Wednesday, July 29th. BWS Financial reaffirmed a "buy" rating on shares of Celestica in a research report on Tuesday, July 28th. JPMorgan Chase & Co. lifted their price target on shares of Celestica from $445.00 to $485.00 and gave the company an "overweight" rating in a research note on Wednesday, July 29th. Barclays cut their price target on shares of Celestica from $430.00 to $406.00 and set an "overweight" rating on the stock in a research report on Friday, August 7th. Finally, Wolfe Research raised their price objective on Celestica from $425.00 to $475.00 and gave the company an "outperform" rating in a report on Wednesday, July 29th. One investment analyst has rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Buy" and a consensus price target of $439.81.

Celestica Stock Performance

The stock has a market capitalization of $37.43 billion, a price-to-earnings ratio of 33.84 and a beta of 2.04. The company's 50-day simple moving average is $325.59 and its 200-day simple moving average is $336.91. The company has a current ratio of 1.23, a quick ratio of 0.68 and a debt-to-equity ratio of 0.32.

Celestica (NYSE:CLS - Get Free Report) TSE: CLS last announced its earnings results on Monday, July 27th. The technology company reported $2.54 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.29 by $0.25. Celestica had a return on equity of 39.96% and a net margin of 7.16%.The business had revenue of $4.68 billion during the quarter, compared to analyst estimates of $4.30 billion. During the same period last year, the company earned $1.39 EPS. Celestica'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, analysts expect that Celestica, Inc. will post 10.71 EPS for the current year.

Insider Activity

In related news, CFO Mandeep Chawla sold 17,000 shares of Celestica 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 completion of the sale, the chief financial officer owned 82,444 shares of the company's stock, valued at approximately $32,948,744.60. This trade represents a 17.10% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CEO Robert Mionis sold 98,453 shares of Celestica stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $368.99, for a total transaction of $36,328,172.47. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 356,553 shares of company stock valued at $135,238,444. 1.10% of the stock is owned by company insiders.

Institutional Trading of Celestica

A number of hedge funds and other institutional investors have recently made changes to their positions in CLS. Washington Trust Advisors Inc. purchased a new position in Celestica during the 2nd quarter valued at about $28,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC bought a new position in shares of Celestica during the fourth quarter valued at $28,000. Ascentis Independent Advisors purchased a new position in shares of Celestica in the 1st quarter worth about $29,000. Swiss RE Ltd. purchased a new position in shares of Celestica in the 4th quarter worth about $29,000. Finally, Cullen Frost Bankers Inc. bought a new position in Celestica in the 4th quarter worth about $30,000. 67.38% of the stock is currently owned by institutional investors.

About Celestica

Celestica Inc NYSE: CLS is a global provider of design, manufacturing, and supply chain solutions for technology companies and other businesses. The company helps customers develop, manufacture, and support complex electronic products and systems, offering services that span product design and engineering, prototyping, printed circuit board assembly, systems integration, testing, supply chain management, and after-market support.

Celestica serves customers across several markets, including communications and cloud infrastructure, aerospace and defense, industrial technology, health technology, and capital equipment.

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