Celestica (NYSE:CLS) Trading Down 2.3% - Here's What Happened

Key Points

• Celestica shares fell 2.3% to $292.64 in Tuesday trading, with volume 41% below the average daily level.
• Analysts remain bullish, with a consensus “Buy” rating and an average price target of $439.81; recent targets range as high as $500.
• The company exceeded quarterly expectations, reporting $2.54 in EPS and $4.68 billion in revenue, up 62.4% year over year. However, insiders sold 356,553 shares worth approximately $135.2 million over the past 90 days.

Celestica, Inc. (NYSE:CLS - Get Free Report) TSE: CLS's share price dropped 2.3% during trading on Tuesday . The company traded as low as $287.50 and last traded at $292.64. Approximately 1,434,174 shares traded hands during trading, a decline of 41% from the average daily volume of 2,430,890 shares. The stock had previously closed at $299.40.

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on CLS shares. Bank of America reaffirmed a "buy" rating on shares of Celestica in a research report on Wednesday, July 29th. Scotiabank assumed coverage on Celestica in a report on Tuesday, August 11th. They issued a "sector outperform" rating and a $500.00 price objective for the company. JPMorgan Chase & Co. raised their target price on Celestica from $445.00 to $485.00 and gave the company an "overweight" rating in a report on Wednesday, July 29th. UBS Group raised Celestica from a "neutral" rating to a "buy" rating and raised their price objective for the company from $410.00 to $430.00 in a report on Monday, August 24th. Finally, Canadian Imperial Bank of Commerce upped 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. One research analyst has 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.com, Celestica has a consensus rating of "Buy" and a consensus target price of $439.81.

Celestica Stock Performance

The stock has a market capitalization of $33.65 billion, a P/E ratio of 30.42 and a beta of 2.06. 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 50 day simple moving average of $331.89 and a 200-day simple moving average of $335.74.

Celestica (NYSE:CLS - Get Free Report) TSE: CLS last issued its earnings results on Monday, July 27th. The technology company reported $2.54 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.29 by $0.25. The business had revenue of $4.68 billion for the quarter, compared to analysts' expectations of $4.30 billion. Celestica had a net margin of 7.16% and a return on equity of 39.96%. The business's revenue for the quarter was up 62.4% compared to the same quarter last year. During the same quarter in the previous year, the firm 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. On average, equities analysts forecast that Celestica, Inc. will post 10.71 EPS for the current year.

Insider Activity

In other news, CFO Mandeep Chawla sold 17,000 shares of the company's stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $399.65, for a total value of $6,794,050.00. Following the transaction, the chief financial officer owned 82,444 shares in the company, valued at approximately $32,948,744.60. This represents a 17.10% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, CEO Robert Mionis sold 98,453 shares of the stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $368.99, for a total transaction of $36,328,172.47. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 356,553 shares of company stock valued at $135,238,444. 1.10% of the stock is owned by insiders.

Institutional Investors Weigh In On Celestica

A number of institutional investors have recently bought and sold shares of the business. Northwestern Mutual Wealth Management Co. raised its holdings in Celestica by 5,806,149.2% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 3,657,937 shares of the technology company's stock valued at $1,081,323,000 after buying an additional 3,657,874 shares during the period. Cibc World Market Inc. purchased a new position in Celestica during the 2nd quarter worth $757,811,000. Connor Clark & Lunn Investment Management Ltd. bought a new position in shares of Celestica during the second quarter valued at approximately $674,199,000. Viking Global Investors LP bought a new position in shares of Celestica in the 3rd quarter worth $424,459,000. Finally, Norges Bank bought a new stake in Celestica during the fourth quarter valued at about $456,511,000. Hedge funds and other institutional investors own 67.38% of the company's stock.

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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