Celestica (NYSE:CLS) Shares Down 4% - What's Next?

Key Points

• Celestica shares fell 4% to approximately $347.72, with trading volume below average.
• Wall Street sentiment remains positive: 23 analysts rate the stock Buy and one rates it Hold, producing a “Moderate Buy” consensus and an average price target of $450.50.
• Celestica reported strong quarterly results, with EPS of $2.54 beating estimates and revenue rising 62.4% year over year to $4.68 billion; however, insiders sold approximately $89.2 million of stock in the past quarter.

Celestica, Inc. (NYSE:CLS - Get Free Report) TSE: CLS dropped 4% on Monday. The company traded as low as $346.95 and last traded at $347.7160. Approximately 1,402,235 shares traded hands during trading, a decline of 42% from the average daily volume of 2,400,282 shares. The stock had previously closed at $362.16.

Wall Street Analyst Weigh In

A number of brokerages recently weighed in on CLS. Barclays dropped their price objective on Celestica from $430.00 to $406.00 and set an "overweight" rating on the stock in a research report on Friday, August 7th. Sanford C. Bernstein initiated coverage on shares of Celestica in a research note on Wednesday, September 30th. They issued an "outperform" rating and a $520.00 target price for the company. Stifel Nicolaus set a $500.00 price target on shares of Celestica in a report on Tuesday, July 28th. TD set a $430.00 price target on Celestica and gave the stock a "buy" rating in a research report on Wednesday, September 16th. Finally, FBN Securities assumed coverage on Celestica in a research note on Tuesday, September 15th. They issued an "outperform" rating and a $375.00 price target for the company. Twenty-three equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $450.50.

Celestica Price Performance

The company has a market cap of $39.98 billion, a PE ratio of 36.15 and a beta of 2.01. 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 stock has a 50 day moving average of $334.06 and a 200-day moving average of $349.28.

Celestica (NYSE:CLS - Get Free Report) TSE: CLS last posted its quarterly earnings results on Monday, July 27th. The technology company reported $2.54 earnings per share for the quarter, beating 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 for the quarter, compared to the consensus estimate of $4.30 billion. During the same quarter in the previous year, the business earned $1.39 EPS. The company's quarterly revenue 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. Equities analysts predict that Celestica, Inc. will post 10.71 earnings per share for the current year.

Insider Buying and Selling

In other Celestica news, CEO Robert Mionis sold 98,453 shares of the firm's stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $368.99, for a total transaction of $36,328,172.47. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 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 directly owned 65,444 shares of the company's stock, valued at $24,169,778.08. This represents a 19.76% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 243,067 shares of company stock worth $89,200,967. 1.10% of the stock is owned by company insiders.

Institutional Trading of Celestica

Hedge funds and other institutional investors have recently made changes to their positions in the business. Washington Trust Advisors Inc. acquired a new stake in shares of Celestica during the 2nd quarter worth about $28,000. Elevation Wealth Partners LLC purchased a new position in Celestica in the 3rd quarter valued at approximately $28,000. Ascentis Independent Advisors purchased a new position in Celestica in the first quarter valued at $29,000. Harbor Investment Advisory LLC purchased a new position in Celestica in the second quarter valued at $58,000. Finally, SHP Wealth Management purchased a new position in Celestica in the fourth quarter valued at $60,000. Institutional investors and hedge funds own 67.38% of the company's stock.

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.

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