Celestica (NYSE:CLS) Stock Falls 4.1% - Here's Why

Key Points

• Celestica shares fell 4.1% to about $356.33, with trading volume slightly below average.
• Analysts remain broadly bullish, with 23 Buy ratings and one Hold rating producing a “Moderate Buy” consensus and an average price target of $450.50, despite Barclays lowering its target and one research firm downgrading the stock.
• The company recently beat quarterly expectations, reporting $2.54 in EPS and $4.68 billion in revenue, while insiders sold approximately $89.2 million of stock over the past 90 days.

Celestica, Inc. (NYSE:CLS - Get Free Report) TSE: CLS's share price fell 4.1% on Thursday. The company traded as low as $346.80 and last traded at $356.3340. 2,147,859 shares were traded during mid-day trading, a decline of 11% from the average session volume of 2,411,172 shares. The stock had previously closed at $371.57.

Analyst Ratings Changes

Several equities research analysts have commented on the company. Barclays cut their price objective on Celestica from $430.00 to $406.00 and set an "overweight" rating for the company in a research note on Friday, August 7th. Wall Street Zen cut Celestica from a "buy" rating to a "hold" rating in a research report on Sunday, September 6th. Bank of America reissued a "buy" rating on shares of Celestica in a research note on Wednesday, July 29th. Wolfe Research raised their price objective on Celestica from $425.00 to $475.00 and gave the company an "outperform" rating in a report on Wednesday, July 29th. Finally, BWS Financial reaffirmed a "buy" rating on shares of Celestica in a research note on Tuesday, July 28th. Twenty-three investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $450.50.

Celestica Stock Down 4.1%

The company has a quick ratio of 0.68, a current ratio of 1.23 and a debt-to-equity ratio of 0.32. The firm has a market capitalization of $40.97 billion, a PE ratio of 37.04 and a beta of 2.01. The business has a 50-day moving average price of $333.39 and a 200-day moving average price of $348.13.

Celestica (NYSE:CLS - Get Free Report) TSE: CLS last issued its earnings results on Monday, July 27th. The technology company reported $2.54 earnings per share (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 company had revenue of $4.68 billion during the quarter, compared to analysts' expectations of $4.30 billion. During the same period in the prior year, the business earned $1.39 EPS. The firm'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. Equities research analysts forecast that Celestica, Inc. will post 10.71 earnings per share for the current fiscal year.

Insider Buying and Selling at Celestica

In other news, CFO Mandeep Chawla sold 16,117 shares of Celestica stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $369.32, for a total transaction of $5,952,330.44. Following the sale, the chief financial officer owned 65,444 shares of the company's stock, valued at approximately $24,169,778.08. The trade was a 19.76% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, President Todd C. Cooper sold 20,118 shares of the company's stock in a transaction that occurred on Wednesday, September 23rd. The shares were sold at an average price of $360.00, for a total value of $7,242,480.00. Following the completion of the transaction, the president owned 73,252 shares in the company, valued at $26,370,720. This represents a 21.55% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 243,067 shares of company stock worth $89,200,967 in the last ninety days. 1.10% of the stock is owned by insiders.

Institutional Investors Weigh In On Celestica

A number of institutional investors and hedge funds have recently added to or reduced their stakes in CLS. Titleist Asset Management LLC acquired a new position in Celestica in the third quarter valued at about $233,000. Elevation Wealth Partners LLC acquired a new position in shares of Celestica in the 3rd quarter worth approximately $28,000. Eleva Capital SAS acquired a new position in shares of Celestica in the 3rd quarter worth approximately $2,372,000. Ferguson Wellman Capital Management Inc. purchased a new position in shares of Celestica during the 3rd quarter worth approximately $27,821,000. Finally, Polaris Financial Partners purchased a new position in shares of Celestica during the 3rd quarter worth approximately $232,000. Hedge funds and other institutional investors own 67.38% of the company's stock.

Celestica Company Profile

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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