Celestica (NYSE:CLS) Shares Up 1.8% - Should You Buy?

Key Points

• Analysts remain bullish: Twenty-three analysts rate Celestica a Buy and one rates it Hold, with a consensus price target of $450.50 versus the recent trading price near $305.
• Strong quarterly performance: Celestica reported adjusted EPS of $2.54, beating estimates by $0.25, while revenue rose 62.4% year over year to $4.68 billion.
• Insider selling is a cautionary signal: Company executives sold a combined 243,067 shares worth approximately $89.2 million over the past 90 days, although institutional investors own 67.38% of the stock.

Celestica, Inc. (NYSE:CLS - Get Free Report) TSE: CLS's share price rose 1.8% during mid-day trading on Wednesday. The stock traded as high as $314.45 and last traded at $305.0110. 1,884,097 shares were traded during trading, a decline of 21% from the average daily volume of 2,397,909 shares. The stock had previously closed at $299.69.

Analyst Ratings Changes

A number of brokerages recently weighed in on CLS. Royal Bank Of Canada set a $450.00 price target on shares of Celestica and gave the company an "outperform" rating in a research report on Wednesday, August 26th. UBS Group upgraded shares of Celestica from a "neutral" rating to a "buy" rating and boosted their price objective for the company from $410.00 to $430.00 in a report on Monday, August 24th. Stifel Nicolaus set a $500.00 target price on shares of Celestica in a research note on Tuesday, July 28th. Canadian Imperial Bank of Commerce upped their target price on shares of Celestica from $480.00 to $500.00 and gave the company an "outperform" rating in a research note on Wednesday, July 29th. Finally, TD set a $430.00 target price on shares of Celestica and gave the stock a "buy" rating in a report on Wednesday, September 16th. Twenty-three analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $450.50.

Celestica Stock Performance

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 market cap of $35.07 billion, a P/E ratio of 31.71 and a beta of 2.01. The stock has a fifty day simple moving average of $332.29 and a 200-day simple moving average of $351.13.

Celestica (NYSE:CLS - Get Free Report) TSE: CLS last released its earnings results on Monday, July 27th. The technology company reported $2.54 EPS 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 firm had revenue of $4.68 billion for the quarter, compared to analysts' expectations of $4.30 billion. During the same quarter in the previous year, the business posted $1.39 EPS. The business'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. On average, equities analysts expect that Celestica, Inc. will post 10.71 earnings per share for the current year.

Insider Transactions at Celestica

In other news, CFO Mandeep Chawla sold 16,117 shares of the business's stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $369.32, for a total value of $5,952,330.44. Following the sale, the chief financial officer owned 65,444 shares of the company's stock, valued at $24,169,778.08. The trade was a 19.76% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, President Todd Cooper sold 20,118 shares of the stock in a transaction on Wednesday, September 23rd. The stock was sold at an average price of $360.00, for a total transaction of $7,242,480.00. Following the transaction, the president 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. Insiders have sold a total of 243,067 shares of company stock valued at $89,200,967 over the last 90 days. 1.10% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Celestica

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Legacy Wealth Managment LLC ID increased its position in Celestica by 14.4% during the first quarter. Legacy Wealth Managment LLC ID now owns 223 shares of the technology company's stock worth $63,000 after buying an additional 28 shares during the last quarter. Capital Planning LLC raised its stake in Celestica by 3.2% in the first quarter. Capital Planning LLC now owns 1,025 shares of the technology company's stock valued at $289,000 after buying an additional 32 shares during the period. PCB Capital LLC raised its stake in Celestica by 3.5% in the first quarter. PCB Capital LLC now owns 995 shares of the technology company's stock valued at $280,000 after buying an additional 34 shares during the period. Riverbend Wealth Management LLC lifted its position in shares of Celestica by 4.8% in the third quarter. Riverbend Wealth Management LLC now owns 745 shares of the technology company's stock valued at $269,000 after buying an additional 34 shares during the last quarter. Finally, XML Financial LLC lifted its position in shares of Celestica by 1.5% in the second quarter. XML Financial LLC now owns 2,640 shares of the technology company's stock valued at $963,000 after buying an additional 40 shares during the last quarter. 67.38% of the stock is owned by institutional investors.

About Celestica

Celestica Inc is a global provider of design, manufacturing, and supply chain solutions for original equipment manufacturers and other technology companies. The company helps customers develop, produce, and support complex hardware and integrated systems across their product life cycles.

Its services include product design and engineering, electronics and mechanical manufacturing, systems integration, testing, supply chain management, logistics, and after-market support. Celestica serves markets such as communications, enterprise and cloud computing, aerospace and defense, industrial technology, health technology, and capital equipment.

Headquartered in Toronto, Canada, Celestica operates a global network of manufacturing, engineering, and supply chain facilities serving customers in North America, Europe, and Asia.

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