Celestica (NYSE:CLS) Stock Falls 9.5% - Time to Sell?

Key Points

• Celestica shares fell 9.5% to about $323.32 in heavy midday trading, below both the 50-day and 200-day moving averages.
• Despite the selloff, analysts remain broadly positive: 23 rate the stock a Buy and one rates it Hold, producing a “Moderate Buy” consensus and a $450.50 average price target.
• The company recently beat quarterly earnings and revenue estimates, with revenue rising 62.4% year over year, although insiders sold roughly 243,067 shares worth $89.2 million over the past three months.

Celestica, Inc. (NYSE:CLS - Get Free Report) TSE: CLS's share price dropped 9.5% during mid-day trading on Wednesday. The company traded as low as $320.50 and last traded at $323.3220. Approximately 2,851,939 shares traded hands during mid-day trading, an increase of 19% from the average daily volume of 2,401,143 shares. The stock had previously closed at $357.44.

Analyst Upgrades and Downgrades

CLS has been the subject of a number of recent research reports. Bank of America reaffirmed a "buy" rating on shares of Celestica in a research report on Wednesday, July 29th. Wall Street Zen cut shares of Celestica from a "buy" rating to a "hold" rating in a research note on Sunday, September 6th. Stifel Nicolaus set a $500.00 price objective on shares of Celestica in a report on Tuesday, July 28th. Scotiabank started coverage on shares of Celestica in a report on Tuesday, August 11th. They issued a "sector outperform" rating and a $500.00 price objective on the stock. Finally, Royal Bank Of Canada set a $450.00 price objective on shares of Celestica and gave the stock an "outperform" rating in a research report on Wednesday, August 26th. Twenty-three research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $450.50.

Celestica Trading Down 9.5%

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 business has a 50-day moving average of $333.87 and a 200-day moving average of $349.99. The firm has a market cap of $37.18 billion, a price-to-earnings ratio of 33.61 and a beta of 2.01.

Celestica (NYSE:CLS - Get Free Report) TSE: CLS last issued its quarterly 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. The firm had revenue of $4.68 billion during the quarter, compared to analysts' expectations of $4.30 billion. Celestica had a return on equity of 39.96% and a net margin of 7.16%. The business's quarterly revenue was up 62.4% compared to the same quarter last year. During the same period in the prior year, the firm posted $1.39 earnings per share. Celestica has set its FY 2026 guidance at 11.300-11.300 EPS and its Q3 2026 guidance at 2.880-3.080 EPS. Research analysts anticipate that Celestica, Inc. will post 10.71 EPS for the current year.

Insider Activity at Celestica

In other Celestica news, President Todd C. Cooper sold 20,118 shares of the stock in a transaction 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 sale, the president owned 73,252 shares in the company, valued at $26,370,720. This trade represents a 21.55% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Robert Mionis sold 98,453 shares of Celestica 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 disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 243,067 shares of company stock valued at $89,200,967. 1.10% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Celestica

Several hedge funds have recently bought and sold shares of CLS. Cibc World Market Inc. acquired a new stake in Celestica during the second quarter worth about $757,811,000. Connor Clark & Lunn Investment Management Ltd. bought a new position in Celestica in the 2nd quarter valued at about $674,199,000. Royal Bank of Canada raised its position in shares of Celestica by 13.8% in the 1st quarter. Royal Bank of Canada now owns 1,283,561 shares of the technology company's stock valued at $361,553,000 after buying an additional 156,040 shares in the last quarter. Bank of America Corp DE acquired a new position in shares of Celestica in the 2nd quarter valued at approximately $444,899,000. Finally, The Manufacturers Life Insurance Company bought a new stake in shares of Celestica during the 2nd quarter worth approximately $351,717,000. 67.38% of the stock is currently owned by institutional investors and hedge funds.

About Celestica

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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