Celestica (NYSE:CLS) Shares Up 1.9% - Should You Buy?

Key Points

• Celestica shares rose 1.9% to about $363, while trading volume was slightly below average. The stock has a market capitalization of approximately $41.7 billion and a beta of 2.04.
• Analysts remain broadly bullish, with an average “Buy” rating and a $440.50 price target, implying substantial upside. Recent targets range from $406 to $500, although one research firm downgraded the stock to “Hold.”
• Celestica exceeded quarterly expectations, reporting $2.54 EPS and $4.68 billion in revenue, with revenue up 62.4% year over year. However, insiders sold roughly $73.4 million of stock in the latest quarter, while institutional investors own 67.38% of shares.

Celestica, Inc. (NYSE:CLS - Get Free Report) TSE: CLS's share price was up 1.9% on Wednesday . The stock traded as high as $367.90 and last traded at $363.0240. 2,272,836 shares changed hands during trading, a decline of 6% from the average daily volume of 2,426,181 shares. The stock had previously closed at $356.09.

Wall Street Analyst Weigh In

CLS has been the subject of a number of recent analyst reports. Scotiabank started coverage on shares of Celestica in a research report on Tuesday, August 11th. They issued a "sector outperform" rating and a $500.00 price target for the company. Canadian Imperial Bank of Commerce upped their price objective on Celestica from $480.00 to $500.00 and gave the stock an "outperform" rating in a report on Wednesday, July 29th. Barclays dropped their price target on Celestica from $430.00 to $406.00 and set an "overweight" rating for the company in a research report on Friday, August 7th. Wall Street Zen cut shares of Celestica from a "buy" rating to a "hold" rating in a research report on Sunday, September 6th. Finally, Stifel Nicolaus set a $500.00 target price on shares of Celestica in a report on Tuesday, July 28th. One analyst has rated the stock with a Strong Buy rating and twenty-three have assigned a Buy rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Buy" and an average price target of $440.50.

Celestica Stock Performance

The business has a 50-day moving average of $322.75 and a two-hundred day moving average of $340.15. The company has a debt-to-equity ratio of 0.32, a current ratio of 1.23 and a quick ratio of 0.68. The company has a market cap of $41.74 billion, a P/E ratio of 37.74 and a beta of 2.04.

Celestica (NYSE:CLS - Get Free Report) TSE: CLS last issued its quarterly earnings results on Monday, July 27th. The technology company reported $2.54 earnings per share (EPS) for the quarter, topping 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 business had revenue of $4.68 billion for the quarter, compared to the consensus estimate of $4.30 billion. During the same period in the prior year, the firm posted $1.39 earnings per share. The business's quarterly revenue 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. On average, sell-side analysts predict that Celestica, Inc. will post 10.71 EPS for the current fiscal year.

Insider Activity at Celestica

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 stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $369.32, for a total value of $5,952,330.44. Following the sale, the chief financial officer directly owned 65,444 shares in the company, 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 sold 199,553 shares of company stock worth $73,437,196. 1.10% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the stock. Cibc World Market Inc. acquired a new stake in shares of Celestica in the second quarter valued at approximately $757,811,000. Connor Clark & Lunn Investment Management Ltd. acquired a new stake in Celestica during the 2nd quarter worth approximately $674,199,000. Norges Bank acquired a new stake in Celestica in the 4th quarter valued at about $456,511,000. Bank of America Corp DE acquired a new stake in shares of Celestica in the 2nd quarter valued at $444,899,000. Finally, The Manufacturers Life Insurance Company purchased a new stake in Celestica during the second quarter worth approximately $351,717,000. 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 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.