Celestica (NYSE:CLS) Shares Up 1% - Here's Why

Key Points

• Celestica shares rose 1% to $333.38 in midday trading, with volume about 12% above the average session level.
• Analysts remain broadly bullish, with an average “Buy” rating and a $439.81 price target; individual targets range as high as $500.
• The company exceeded quarterly expectations, reporting $2.54 in EPS versus $2.29 expected and $4.68 billion in revenue, up 62.4% year over year. However, insiders sold 356,553 shares worth approximately $135.2 million during the last quarter.

Celestica, Inc. (NYSE:CLS - Get Free Report) TSE: CLS traded up 1% during trading on Wednesday . The stock traded as high as $346.72 and last traded at $333.38. 2,739,788 shares were traded during mid-day trading, an increase of 12% from the average session volume of 2,447,710 shares. The stock had previously closed at $329.97.

Wall Street Analysts Forecast Growth

CLS has been the subject of a number of research reports. Weiss Ratings lowered shares of Celestica from a "buy (b)" rating to a "buy (b-)" rating in a report on Thursday, August 13th. Royal Bank Of Canada set a $450.00 price objective on shares of Celestica and gave the company an "outperform" rating in a research note on Wednesday, August 26th. Bank of America restated a "buy" rating on shares of Celestica in a report on Wednesday, July 29th. Wolfe Research increased their price target on Celestica from $425.00 to $475.00 and gave the company an "outperform" rating in a report on Wednesday, July 29th. Finally, Scotiabank began coverage on Celestica in a research note on Tuesday, August 11th. They set a "sector outperform" rating and a $500.00 price objective on the stock. One analyst has rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating and one has assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Buy" and an average target price of $439.81.

Celestica Stock Up 1.0%

The stock has a market capitalization of $38.33 billion, a price-to-earnings ratio of 34.65 and a beta of 2.04. The business has a fifty day moving average of $326.16 and a 200 day moving average of $336.61. The company has a debt-to-equity ratio of 0.32, a current ratio of 1.23 and a quick ratio of 0.68.

Celestica (NYSE:CLS - Get Free Report) TSE: CLS last posted its earnings results on Monday, July 27th. The technology company reported $2.54 EPS for the quarter, beating analysts' consensus estimates of $2.29 by $0.25. Celestica had a return on equity of 39.96% and a net margin of 7.16%.The company 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 earnings per share. The company's revenue for the quarter was up 62.4% on a year-over-year basis. Celestica has set its FY 2026 guidance at 11.300-11.300 EPS and its Q3 2026 guidance at 2.880-3.080 EPS. As a group, equities analysts predict that Celestica, Inc. will post 10.71 earnings per share for the current year.

Insider Activity at Celestica

In other Celestica news, CFO Mandeep Chawla sold 17,000 shares of the stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $399.65, for a total value of $6,794,050.00. Following the sale, the chief financial officer directly owned 82,444 shares of the company's stock, valued at approximately $32,948,744.60. This represents a 17.10% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, CEO Robert Mionis sold 98,453 shares of the stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $368.99, for a total value of $36,328,172.47. The SEC filing for this sale provides additional information. Insiders have sold a total of 356,553 shares of company stock valued at $135,238,444 in the last quarter. 1.10% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Celestica

Several hedge funds have recently added to or reduced their stakes in CLS. Sequoia Financial Advisors LLC lifted its position in shares of Celestica by 0.9% during the 2nd quarter. Sequoia Financial Advisors LLC now owns 4,363 shares of the technology company's stock worth $1,592,000 after buying an additional 40 shares during the last quarter. Tidal Investments LLC increased its position in shares of Celestica by 198.2% during the second quarter. Tidal Investments LLC now owns 106,509 shares of the technology company's stock worth $38,854,000 after purchasing an additional 70,794 shares in the last quarter. IPG Investment Advisors LLC boosted its position in shares of Celestica by 449.7% in the 2nd quarter. IPG Investment Advisors LLC now owns 5,360 shares of the technology company's stock valued at $1,954,000 after purchasing an additional 4,385 shares during the period. Whetstone Capital Advisors LLC acquired a new position in Celestica during the second quarter worth approximately $281,000. Finally, WINTON GROUP Ltd grew its position in shares of Celestica by 109.3% during the second quarter. WINTON GROUP Ltd now owns 3,140 shares of the technology company's stock worth $1,145,000 after acquiring an additional 1,640 shares during the last quarter. 67.38% of the stock is currently owned by hedge funds and other 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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