Celestica (NYSE:CLS) Trading Up 3.3% - Still a Buy?

Key Points

• Celestica shares rose 3.3% to about $317.42, while trading volume was 28% below the average daily level.
• Analysts remain broadly optimistic, with an average “Buy” rating and a consensus price target of $439.81, implying substantial upside from the trading price.
• The company exceeded quarterly expectations, reporting $2.54 in adjusted EPS versus a $2.29 consensus 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 three months.

Celestica, Inc. (NYSE:CLS - Get Free Report) TSE: CLS's stock price traded up 3.3% during trading on Thursday . The company traded as high as $325.82 and last traded at $317.4160. Approximately 1,749,800 shares changed hands during trading, a decline of 28% from the average daily volume of 2,446,643 shares. The stock had previously closed at $307.32.

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on CLS. Rothschild & Co Redburn began coverage on Celestica in a research report on Friday, May 1st. They set a "buy" rating and a $460.00 target price for the company. TD Cowen raised shares of Celestica from a "hold" rating to a "buy" rating and raised their price objective for the company from $350.00 to $430.00 in a research note on Wednesday, April 29th. 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 note on Wednesday, July 29th. Weiss Ratings cut shares of Celestica from a "buy (b)" rating to a "buy (b-)" rating in a report on Thursday, August 13th. Finally, Susquehanna upped their target price on shares of Celestica from $460.00 to $510.00 and gave the company a "positive" rating in a research note on Wednesday, April 29th. One investment analyst has rated the stock with a Strong Buy rating, twenty-one have given a Buy rating and one has given a Hold rating to the company's stock. According to MarketBeat, Celestica currently has an average rating of "Buy" and a consensus price target of $439.81.

Celestica Stock Performance

The company has a current ratio of 1.23, a quick ratio of 0.68 and a debt-to-equity ratio of 0.32. The stock's 50 day moving average price is $336.01 and its 200 day moving average price is $335.80. The company has a market capitalization of $36.50 billion, a price-to-earnings ratio of 33.00 and a beta of 2.06.

Celestica (NYSE:CLS - Get Free Report) TSE: CLS last posted its quarterly earnings results on Monday, July 27th. The technology company reported $2.54 earnings per share for the quarter, topping 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 analyst estimates of $4.30 billion. During the same quarter in the previous year, the firm earned $1.39 EPS. The business's quarterly 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. Analysts expect that Celestica, Inc. will post 10.15 earnings per share for the current year.

Insider Buying and Selling

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

Institutional Investors Weigh In On Celestica

A number of hedge funds and other institutional investors have recently modified their holdings of CLS. Renaissance Technologies LLC acquired a new position in Celestica during the first quarter valued at approximately $68,952,000. CIBC Asset Management Inc raised its position in Celestica by 7.7% in the fourth quarter. CIBC Asset Management Inc now owns 436,922 shares of the technology company's stock valued at $129,499,000 after purchasing an additional 31,086 shares during the last quarter. Norges Bank acquired a new stake in Celestica during the 4th quarter worth approximately $456,511,000. Marietta Investment Partners LLC acquired a new position in shares of Celestica during the fourth quarter worth $1,273,000. Finally, BW Gestao de Investimentos Ltda. lifted its holdings in Celestica by 29.9% during the 4th quarter. BW Gestao de Investimentos Ltda. now owns 31,179 shares of the technology company's stock worth $9,217,000 after buying an additional 7,179 shares during the period. Institutional investors and hedge funds 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source