Celestica (NYSE:CLS) Stock Price Up 8.7% - Here's Why

Key Points

• Celestica shares rose 8.7% to about $301.81 in Thursday trading, with volume below the stock’s average daily level.
• Analyst sentiment remains strongly positive: the stock has a consensus “Buy” rating and a $439.81 average price target, with UBS and CIBC recently raising their targets.
• Celestica exceeded quarterly expectations, reporting $2.54 in EPS versus $2.29 expected and $4.68 billion in revenue versus $4.30 billion expected; revenue increased 62.4% year over year. However, insiders sold more than $135 million of shares over the past three months.

Shares of Celestica, Inc. (NYSE:CLS - Get Free Report) TSE: CLS were up 8.7% during trading on Thursday . The stock traded as high as $299.44 and last traded at $301.8080. 1,363,927 shares were traded during trading, a decline of 44% from the average daily volume of 2,428,120 shares. The stock had previously closed at $277.77.

Analysts Set New Price Targets

Several analysts have recently issued reports on the stock. BWS Financial reissued a "buy" rating on shares of Celestica in a research note on Tuesday, July 28th. Zacks Research upgraded Celestica from a "hold" rating to a "strong-buy" rating in a report on Friday, June 26th. Canadian Imperial Bank of Commerce boosted their price target on Celestica from $480.00 to $500.00 and gave the company an "outperform" rating in a research report on Wednesday, July 29th. Bank of America restated a "buy" rating on shares of Celestica in a research note on Wednesday, July 29th. Finally, UBS Group upgraded Celestica from a "neutral" rating to a "buy" rating and raised their price objective for the stock from $410.00 to $430.00 in a report on Monday, August 24th. One equities research 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 stock. According to MarketBeat, the stock has a consensus rating of "Buy" and a consensus price target of $439.81.

Celestica Price Performance

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 company has a market cap of $35.53 billion, a PE ratio of 32.10 and a beta of 2.04. The company has a 50-day moving average price of $328.98 and a two-hundred day moving average price of $335.73.

Celestica (NYSE:CLS - Get Free Report) TSE: CLS last announced its 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 business had revenue of $4.68 billion for the quarter, compared to the consensus estimate of $4.30 billion. Celestica had a return on equity of 39.96% and a net margin of 7.16%.The company's revenue was up 62.4% on a year-over-year basis. During the same period last year, the business posted $1.39 EPS. Celestica has set its FY 2026 guidance at 11.300-11.300 EPS and its Q3 2026 guidance at 2.880-3.080 EPS. Sell-side analysts expect that Celestica, Inc. will post 10.71 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CEO Robert Mionis sold 23,496 shares of Celestica stock in a transaction on Thursday, August 13th. The shares were sold at an average price of $362.39, for a total value of $8,514,715.44. Following the completion of the sale, the chief executive officer owned 23,396 shares in the company, valued at approximately $8,478,476.44. The trade was a 50.11% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Mandeep Chawla sold 16,117 shares of the company's stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $369.32, for a total transaction of $5,952,330.44. Following the completion of the sale, the chief financial officer directly owned 65,444 shares in the company, valued at $24,169,778.08. This represents a 19.76% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 356,553 shares of company stock valued at $135,238,444 in the last three months. Corporate insiders own 1.10% of the company's stock.

Institutional Investors Weigh In On Celestica

Institutional investors have recently made changes to their positions in the company. NewGen Equity Long Short Fund bought a new stake in shares of Celestica during the 2nd quarter valued at about $14,050,000. Northwestern Mutual Wealth Management Co. lifted its holdings in shares of Celestica by 7,646.2% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 1,007 shares of the technology company's stock worth $157,000 after purchasing an additional 994 shares during the last quarter. First Trust Advisors LP boosted its position in Celestica by 30.0% during the 2nd quarter. First Trust Advisors LP now owns 78,061 shares of the technology company's stock valued at $12,197,000 after purchasing an additional 18,025 shares during the period. NewEdge Advisors LLC boosted its position in Celestica by 385.8% during the 2nd quarter. NewEdge Advisors LLC now owns 2,803 shares of the technology company's stock valued at $438,000 after purchasing an additional 2,226 shares during the period. Finally, HUB Investment Partners LLC grew its stake in Celestica by 11.0% during the 2nd quarter. HUB Investment Partners LLC now owns 3,181 shares of the technology company's stock worth $497,000 after buying an additional 315 shares during the last quarter. 67.38% of the stock is currently owned by institutional investors.

Celestica Company Profile

Celestica Inc is a multinational electronics manufacturing services (EMS) company that provides design, engineering, manufacturing and supply chain solutions to original equipment manufacturers across a range of industries. Headquartered in Toronto, Ontario, Canada, Celestica works with customers to develop and produce complex electronic and electro-mechanical products, integrating activities from product design and prototyping through high-volume assembly, testing and final system integration.

The company's service offering typically includes product engineering and design support, printed circuit board assembly, box-build and systems assembly, automated test and inspection, aftermarket repair and refurbishment, and end-to-end supply chain and logistics management.

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