Celestica (NYSE:CLS) Stock Jumps 8.3% - What's Next?

Key Points

• Celestica shares jumped 8.3% to about $242.37, with trading volume 76% above its daily average.
• The company beat quarterly expectations, reporting EPS of $3.30 versus $3.02 forecast and revenue of $5.74 billion versus $5.39 billion expected.
• Analysts maintain a consensus Buy rating and an average $445.14 price target, while company insiders sold 67,010 shares worth about $24.3 million over the past 90 days.

Shares of Celestica, Inc. (NYSE:CLS - Get Free Report) TSE: CLS rose 8.3% on Wednesday. The company traded as high as $247.12 and last traded at $242.3670. Approximately 4,443,895 shares were traded during trading, an increase of 76% from the average daily volume of 2,527,022 shares. The stock had previously closed at $223.89.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently weighed in on the company. TD Cowen reiterated a "buy" rating on shares of Celestica in a research report on Tuesday, October 27th. Sanford C. Bernstein cut their price objective on shares of Celestica from $495.00 to $340.00 and set an "outperform" rating for the company in a research report on Monday. The Goldman Sachs Group reaffirmed a "conviction-buy" rating and set a $435.00 target price on shares of Celestica in a report on Wednesday, October 28th. TD set a $430.00 target price on shares of Celestica and gave the stock a "buy" rating in a research note on Wednesday, September 16th. Finally, FBN Securities began coverage on shares of Celestica in a research report on Tuesday, September 15th. They set an "outperform" rating and a $375.00 price target for the company. Two investment analysts have rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating and one has given a Hold rating to the company. According to MarketBeat, Celestica presently has a consensus rating of "Buy" and an average target price of $445.14.

Celestica Stock Performance

The company has a market cap of $30.57 billion, a P/E ratio of 22.93, a price-to-earnings-growth ratio of 1.56 and a beta of 2.10. The company's fifty day moving average is $314.29 and its 200 day moving average is $328.42. The company has a current ratio of 1.61, a quick ratio of 1.03 and a debt-to-equity ratio of 0.13.

Celestica (NYSE:CLS - Get Free Report) TSE: CLS last released its earnings results on Monday, October 26th. The technology company reported $3.30 earnings per share for the quarter, beating analysts' consensus estimates of $3.02 by $0.28. Celestica had a return on equity of 33.80% and a net margin of 6.83%. The company had revenue of $5.74 billion during the quarter, compared to analyst estimates of $5.39 billion. As a group, equities analysts predict that Celestica, Inc. will post 10.97 earnings per share for the current fiscal year.

Insider Buying and Selling

In other 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 ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Robert Mionis sold 23,496 shares of the firm's stock in a transaction dated Thursday, August 13th. The stock was sold at an average price of $362.39, for a total transaction of $8,514,715.44. Following the completion of the sale, the chief executive officer owned 23,396 shares of the company's stock, valued at $8,478,476.44. This trade represents a 50.11% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 67,010 shares of company stock valued at $24,278,487 in the last ninety days. 1.10% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Celestica

Several hedge funds have recently bought and sold shares of CLS. Washington Trust Advisors Inc. bought a new stake in Celestica in the second quarter worth $28,000. Elevation Wealth Partners LLC bought a new stake in shares of Celestica in the third quarter worth $28,000. Ascentis Independent Advisors purchased a new stake in shares of Celestica during the 1st quarter valued at about $29,000. Latitude Advisors LLC purchased a new stake in Celestica during the third quarter valued at approximately $40,000. Finally, Mather Group LLC. raised its holdings in Celestica by 266.7% in the 3rd quarter. Mather Group LLC. now owns 121 shares of the technology company's stock worth $44,000 after purchasing an additional 88 shares during the period. Institutional investors 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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