Celestica (NYSE:CLS) Stock Price Down 1.2% - Should You Sell?

Key Points

• Celestica shares fell 1.2% to $361.89, while trading volume was 14% below average. The stock remains above its 50-day and 200-day moving averages.
• Analyst sentiment is broadly positive: 23 analysts rate the stock a Buy, with a consensus price target of $450.50. Bernstein initiated coverage with an Outperform rating and a $520 target, although Zacks downgraded the shares from Strong Buy to Hold.
• Celestica reported strong quarterly results, including EPS of $2.54 versus the $2.29 estimate and revenue growth of 62.4% year over year. However, insiders have sold approximately $89.2 million of stock over the past 90 days, a potential cautionary signal.

Celestica, Inc. (NYSE:CLS - Get Free Report) TSE: CLS's stock price fell 1.2% during trading on Wednesday. The company traded as low as $353.52 and last traded at $361.89. 2,090,711 shares were traded during trading, a decline of 14% from the average session volume of 2,427,313 shares. The stock had previously closed at $366.47.

More Celestica News

Here are the key news stories impacting Celestica this week:

• Positive Sentiment: Sanford C. Bernstein initiated coverage with an “outperform” rating and a $520 price target, implying substantial upside from recent trading levels. The new coverage adds a bullish institutional view and supports the investment case for Celestica’s growth prospects.
• Positive Sentiment: Brokerage sentiment remains broadly favorable, with Celestica carrying a consensus “Buy” rating and an average recommendation that suggests investors consider purchasing the shares. However, analyst ratings can have an optimistic bias. Celestica Receives Consensus Rating of Buy from Brokerages
• Positive Sentiment: CLS recently advanced during a market decline, indicating some relative strength and continued investor interest in the company. Celestica Increases Despite Market Slip
• Neutral Sentiment: The bullish consensus is tempered by warnings that Wall Street recommendations alone may not be reliable investment signals. Investors may want to weigh the ratings against Celestica’s valuation, execution, and earnings outlook. Brokers Suggest Investing in Celestica
• Negative Sentiment: Zacks Research downgraded Celestica from “strong buy” to “hold,” introducing a more cautious view and likely offsetting some of the optimism generated by Bernstein’s bullish initiation.

Analyst Upgrades and Downgrades

Several research firms have issued reports on CLS. Sanford C. Bernstein assumed coverage on shares of Celestica in a research note on Wednesday. They set an "outperform" rating and a $520.00 price objective for the company. Canadian Imperial Bank of Commerce upped their price target on shares of Celestica from $480.00 to $500.00 and gave the company an "outperform" rating in a research report on Wednesday, July 29th. Stifel Nicolaus set a $500.00 price objective on shares of Celestica in a research report on Tuesday, July 28th. TD Cowen reiterated a "buy" rating on shares of Celestica in a report on Wednesday, September 16th. Finally, Barclays lowered their target price on Celestica from $430.00 to $406.00 and set an "overweight" rating on the stock in a research note on Friday, August 7th. Twenty-three research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $450.50.

Celestica Price Performance

The company's 50-day simple moving average is $327.51 and its 200 day simple moving average is $343.72. The company has a market capitalization of $41.61 billion, a P/E ratio of 37.62 and a beta of 2.04. The company has a quick ratio of 0.68, a current ratio of 1.23 and a debt-to-equity ratio of 0.32.

Celestica (NYSE:CLS - Get Free Report) TSE: CLS last released its quarterly earnings data 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 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 previous year, the business earned $1.39 EPS. Celestica's quarterly revenue was up 62.4% compared to the same quarter last year. Celestica has set its FY 2026 guidance at 11.300-11.300 EPS and its Q3 2026 guidance at 2.880-3.080 EPS. As a group, sell-side analysts expect that Celestica, Inc. will post 10.71 earnings per share for the current fiscal year.

Insider Transactions at Celestica

In related news, President Todd Cooper sold 20,118 shares of the business's stock in a transaction dated 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 completion of the transaction, the president 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 document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Mandeep Chawla sold 16,117 shares of the stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $369.32, for a total value 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 SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 243,067 shares of company stock worth $89,200,967. Company insiders own 1.10% of the company's stock.

Institutional Investors Weigh In On Celestica

Several hedge funds have recently made changes to their positions in the stock. Legacy Wealth Managment LLC ID lifted its holdings in shares of Celestica by 14.4% during the 1st quarter. Legacy Wealth Managment LLC ID now owns 223 shares of the technology company's stock worth $63,000 after acquiring an additional 28 shares during the period. Capital Planning LLC boosted its holdings in Celestica by 3.2% during the first quarter. Capital Planning LLC now owns 1,025 shares of the technology company's stock valued at $289,000 after purchasing an additional 32 shares in the last quarter. PCB Capital LLC boosted its holdings in Celestica by 3.5% during the first quarter. PCB Capital LLC now owns 995 shares of the technology company's stock valued at $280,000 after purchasing an additional 34 shares in the last quarter. XML Financial LLC grew its stake in shares of Celestica by 1.5% in the 2nd quarter. XML Financial LLC now owns 2,640 shares of the technology company's stock valued at $963,000 after purchasing an additional 40 shares during the period. Finally, Sequoia Financial Advisors LLC raised its holdings in shares of Celestica by 0.9% in the 2nd quarter. Sequoia Financial Advisors LLC now owns 4,363 shares of the technology company's stock worth $1,592,000 after buying an additional 40 shares in the last quarter. 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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