Celestica (NYSE:CLS) Shares Up 5.8% - Here's What Happened

Key Points

• Celestica shares rose 5.8% to about $330.41 in heavy trading, with volume 22% above the daily average.
• Analysts remain broadly bullish, with an average “Buy” rating and a $439.81 price target; recent targets range from $406 to $500.
• The company reported strong quarterly results, including $2.54 in adjusted EPS versus $2.29 expected and $4.68 billion in revenue, up 62.4% year over year. However, insiders have sold roughly $135.2 million of stock over the past 90 days.

Celestica, Inc. (NYSE:CLS - Get Free Report) TSE: CLS's stock price traded up 5.8% during trading on Tuesday . The company traded as high as $336.58 and last traded at $330.4130. 2,972,060 shares changed hands during mid-day trading, an increase of 22% from the average daily volume of 2,444,320 shares. The stock had previously closed at $312.35.

Analysts Set New Price Targets

CLS has been the subject of several recent research reports. Stifel Nicolaus set a $500.00 target price on shares of Celestica in a research report on Tuesday, July 28th. Barclays decreased their price objective on shares of Celestica from $430.00 to $406.00 and set an "overweight" rating for the company in a report on Friday, August 7th. Bank of America reaffirmed a "buy" rating on shares of Celestica in a research report on Wednesday, July 29th. UBS Group raised Celestica from a "neutral" rating to a "buy" rating and increased their price objective for the company from $410.00 to $430.00 in a report on Monday, August 24th. Finally, Royal Bank Of Canada set a $450.00 price objective on Celestica and gave the company an "outperform" rating in a research note on Wednesday, August 26th. One investment analyst has rated the stock with a Strong Buy rating, twenty-one have given a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Buy" and an average price target of $439.81.

Celestica Trading Up 5.8%

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 capitalization of $37.99 billion, a price-to-earnings ratio of 34.35 and a beta of 2.04. The company's 50 day moving average is $326.86 and its 200 day moving average is $336.35.

Celestica (NYSE:CLS - Get Free Report) TSE: CLS last announced its quarterly earnings data 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 net margin of 7.16% and a return on equity of 39.96%. The business had revenue of $4.68 billion during the quarter, compared to analyst estimates of $4.30 billion. During the same quarter in the prior year, the business earned $1.39 earnings per share. The firm'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. On average, research analysts forecast that Celestica, Inc. will post 10.71 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, CEO Robert Mionis sold 98,453 shares of the firm's stock in a transaction dated 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 filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Mandeep Chawla sold 17,000 shares of the company's stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $399.65, for a total transaction of $6,794,050.00. Following the completion of the sale, the chief financial officer directly owned 82,444 shares in the company, valued at approximately $32,948,744.60. The trade was a 17.10% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 356,553 shares of company stock valued at $135,238,444 over the last 90 days. 1.10% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Celestica

Several large investors have recently modified their holdings of CLS. Washington Trust Advisors Inc. acquired a new stake in Celestica in the 2nd quarter valued at $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. Swiss RE Ltd. bought a new position in shares of Celestica during the fourth quarter valued at $29,000. Cullen Frost Bankers Inc. acquired a new stake in shares of Celestica in the 4th quarter valued at $30,000. Finally, Sittner & Nelson LLC bought a new stake in shares of Celestica in the 4th quarter worth about $31,000. 67.38% of the stock is currently owned by institutional investors.

About Celestica

Celestica Inc is a multinational electronics manufacturing services (EMS) company that provides design, engineering, manufacturing and supply chain solutions to original equipment manufacturers across a range of industries. Headquartered in Toronto, Ontario, Canada, Celestica works with customers to develop and produce complex electronic and electro-mechanical products, integrating activities from product design and prototyping through high-volume assembly, testing and final system integration.

The company's service offering typically includes product engineering and design support, printed circuit board assembly, box-build and systems assembly, automated test and inspection, aftermarket repair and refurbishment, and end-to-end supply chain and logistics management.

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