Celestica (NYSE:CLS) Stock Price Down 8.7% - What's Next?

Key Points

• Celestica shares fell 8.7% to about $316.34, with roughly 2.33 million shares changing hands. The stock’s 50-day and 200-day moving averages were $325.56 and $337.48, respectively.
• Despite the decline, analysts maintained a broadly positive outlook, with a consensus “Buy” rating and an average price target of $439.81; several firms set targets near $500.
• Celestica exceeded quarterly expectations, reporting $2.54 in EPS versus $2.29 expected and $4.68 billion in revenue, up 62.4% year over year. However, insiders sold approximately $102 million of stock over the past three months.

Celestica, Inc. (NYSE:CLS - Get Free Report) TSE: CLS's stock price was down 8.7% during trading on Monday . The stock traded as low as $313.00 and last traded at $316.3420. Approximately 2,327,435 shares traded hands during mid-day trading, a decline of 5% from the average session volume of 2,441,861 shares. The stock had previously closed at $346.55.

Wall Street Analyst Weigh In

CLS has been the subject of a number of analyst reports. Zacks Research upgraded Celestica from a "hold" rating to a "strong-buy" rating in a report on Friday, June 26th. BWS Financial reiterated a "buy" rating on shares of Celestica in a report on Tuesday, July 28th. Canadian Imperial Bank of Commerce boosted their price target on Celestica from $480.00 to $500.00 and gave the stock an "outperform" rating in a research report on Wednesday, July 29th. Scotiabank began coverage on Celestica in a research note on Tuesday, August 11th. They set a "sector outperform" rating and a $500.00 price objective for the company. Finally, Stifel Nicolaus set a $500.00 price objective on Celestica in a research report on Tuesday, July 28th. One analyst has rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating and one has issued a Hold rating to the company's stock. According to MarketBeat.com, the company currently has a consensus rating of "Buy" and a consensus price target of $439.81.

Celestica Stock Down 8.7%

The firm has a market capitalization of $36.37 billion, a price-to-earnings ratio of 32.88 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. The company's 50 day moving average price is $325.56 and its 200 day moving average price is $337.48.

Celestica (NYSE:CLS - Get Free Report) TSE: CLS last released 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 firm had revenue of $4.68 billion for the quarter, compared to the consensus estimate of $4.30 billion. During the same period in the prior year, the firm earned $1.39 EPS. The firm's 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. As a group, research analysts forecast that Celestica, Inc. will post 10.71 earnings per share for the current fiscal year.

Insider Transactions at Celestica

In related news, CEO Robert Mionis sold 98,453 shares of the company's stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $368.99, for a total value of $36,328,172.47. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, CFO Mandeep Chawla sold 16,117 shares of the stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $369.32, for a total transaction of $5,952,330.44. Following the completion of the transaction, the chief financial officer owned 65,444 shares in the company, valued at approximately $24,169,778.08. This trade represents a 19.76% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 273,497 shares of company stock worth $102,018,031 over the last three months. Corporate insiders own 1.10% of the company's stock.

Institutional Trading of Celestica

Several large investors have recently made changes to their positions in the business. Junto Capital Management LP acquired a new stake in shares of Celestica in the second quarter worth $43,461,000. Sequoia Financial Advisors LLC lifted its position in Celestica by 0.9% during the second quarter. Sequoia Financial Advisors LLC now owns 4,363 shares of the technology company's stock valued at $1,592,000 after purchasing an additional 40 shares during the period. Tidal Investments LLC boosted its holdings in Celestica by 198.2% in the second quarter. Tidal Investments LLC now owns 106,509 shares of the technology company's stock valued at $38,854,000 after purchasing an additional 70,794 shares during the last quarter. IPG Investment Advisors LLC grew its position in Celestica by 449.7% during the 2nd quarter. IPG Investment Advisors LLC now owns 5,360 shares of the technology company's stock worth $1,954,000 after purchasing an additional 4,385 shares during the period. Finally, Whetstone Capital Advisors LLC purchased a new position in shares of Celestica during the 2nd quarter valued at about $281,000. 67.38% of the stock is owned by hedge funds and other institutional investors.

About Celestica

Celestica Inc NYSE: CLS is a global provider of design, manufacturing, and supply chain solutions for technology companies and other businesses. The company helps customers develop, manufacture, and support complex electronic products and systems, offering services that span product design and engineering, prototyping, printed circuit board assembly, systems integration, testing, supply chain management, and after-market support.

Celestica serves customers across several markets, including communications and cloud infrastructure, aerospace and defense, industrial technology, health technology, and capital equipment.

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