Celestica (NYSE:CLS) Stock Falls 8.9% - What's Next?

Key Points

• Celestica shares fell 8.9% in Friday mid-day trading to about $231.40, with trading volume 53% below its average.
• Analysts remain broadly bullish: the consensus rating is Buy, with an average price target of $445.14.
• Latest quarterly results topped estimates, with EPS of $3.30 versus $3.02 expected and revenue of $5.74 billion versus $5.39 billion expected.

Celestica, Inc. (NYSE:CLS - Get Free Report) TSE: CLS dropped 8.9% during mid-day trading on Friday. The company traded as low as $232.13 and last traded at $231.4020. 1,183,452 shares traded hands during mid-day trading, a decline of 53% from the average daily volume of 2,530,127 shares. The stock had previously closed at $254.03.

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on CLS shares. Zacks Research raised shares of Celestica from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, November 3rd. Citigroup increased their target price on shares of Celestica from $415.00 to $436.00 and gave the stock a "buy" rating in a report on Wednesday, October 28th. Barclays raised their target price on shares of Celestica from $406.00 to $414.00 and gave the company an "overweight" rating in a research report on Wednesday, October 28th. Wall Street Zen upgraded shares of Celestica from a "hold" rating to a "buy" rating in a research note on Saturday, November 7th. Finally, UBS Group boosted their price target on shares of Celestica from $430.00 to $453.00 and gave the stock a "buy" rating in a research report on Wednesday, October 28th. Two equities research analysts have 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. According to MarketBeat, Celestica has a consensus rating of "Buy" and an average target price of $445.14.

Celestica Trading Down 6.1%

The stock has a market cap of $30.08 billion, a price-to-earnings ratio of 22.59, a PEG ratio of 1.70 and a beta of 2.10. The company has a quick ratio of 1.03, a current ratio of 1.61 and a debt-to-equity ratio of 0.13. The business's 50 day simple moving average is $312.83 and its 200 day simple moving average is $327.85.

Celestica (NYSE:CLS - Get Free Report) TSE: CLS last announced its quarterly earnings data on Monday, October 26th. The technology company reported $3.30 EPS for the quarter, beating analysts' consensus estimates of $3.02 by $0.28. Celestica had a net margin of 6.83% and a return on equity of 33.80%. The company had revenue of $5.74 billion during the quarter, compared to the consensus estimate of $5.39 billion. On average, research analysts expect that Celestica, Inc. will post 10.97 EPS for the current fiscal year.

Insider Buying and Selling

In related news, President Todd Cooper sold 20,118 shares of the business's stock in a transaction that occurred 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 directly owned 73,252 shares of the company's stock, valued at approximately $26,370,720. The trade was a 21.55% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Robert Mionis sold 23,396 shares of the stock in a transaction on Wednesday, September 23rd. The shares were sold at an average price of $364.22, for a total value of $8,521,291.12. Additional details regarding this sale are available in the official SEC disclosure. 1.10% of the stock is currently owned by insiders.

Institutional Trading of Celestica

A number of hedge funds have recently modified their holdings of CLS. Cibc World Market Inc. acquired a new stake in Celestica during the second quarter worth 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. Voya Investment Management LLC boosted its stake in Celestica by 4.3% in the 3rd quarter. Voya Investment Management LLC now owns 1,349,058 shares of the technology company's stock valued at $487,591,000 after purchasing an additional 55,174 shares during the period. Bank of America Corp DE bought a new stake in Celestica in the 2nd quarter valued at $444,899,000. Finally, Pictet Asset Management Holding SA grew its holdings in Celestica by 94.4% in the 3rd quarter. Pictet Asset Management Holding SA now owns 1,068,473 shares of the technology company's stock valued at $386,578,000 after buying an additional 518,798 shares in the last quarter. Institutional investors and hedge funds own 67.38% of the company's stock.

About Celestica

Celestica Inc. is a global provider of design, manufacturing, and supply chain services for companies across technology and industrial markets. Its work spans product development, engineering, manufacturing, testing, and ongoing product support. The company's offerings include hardware and infrastructure used in cloud computing and data centers, communications networks, aerospace and defense, industrial equipment, and health technology. It also provides supply chain management and other services to support products throughout their lifecycle.

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