Celestica (NYSE:CLS) Trading Up 4.2% - What's Next?

Key Points

• Celestica shares rose 4.2% to about $306.89 in midday trading, although volume was 32% below the average daily level.
• Analyst sentiment remains bullish, with the stock carrying an average “Buy” rating and a consensus price target of $439.81; recent targets range from $406 to $500.
• Celestica exceeded quarterly expectations, reporting $2.54 in EPS and $4.68 billion in revenue, with 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 shares shot up 4.2% during mid-day trading on Tuesday . The stock traded as high as $307.34 and last traded at $306.8930. Approximately 1,672,001 shares were traded during trading, a decline of 32% from the average daily volume of 2,456,164 shares. The stock had previously closed at $294.57.

Wall Street Analysts Forecast Growth

Several equities analysts have commented on CLS shares. JPMorgan Chase & Co. raised their target price on shares of Celestica from $445.00 to $485.00 and gave the company an "overweight" rating in a report on Wednesday, July 29th. TD Cowen upgraded Celestica from a "hold" rating to a "buy" rating and upped their target price for the stock from $350.00 to $430.00 in a research note on Wednesday, April 29th. Stifel Nicolaus set a $500.00 price target on Celestica in a research note on Tuesday, July 28th. Barclays reduced their price objective on Celestica from $430.00 to $406.00 and set an "overweight" rating on the stock in a research note on Friday, August 7th. Finally, Weiss Ratings downgraded shares of Celestica from a "buy (b)" rating to a "buy (b-)" rating in a research note on Thursday, August 13th. 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. According to data from MarketBeat.com, Celestica currently has an average rating of "Buy" and an average target price of $439.81.

Celestica Trading Up 4.2%

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 firm has a market capitalization of $35.29 billion, a price-to-earnings ratio of 31.90 and a beta of 2.06. The firm's 50-day moving average is $338.98 and its 200 day moving average is $335.49.

Celestica (NYSE:CLS - Get Free Report) TSE: CLS last released its quarterly 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. The firm had revenue of $4.68 billion during the quarter, compared to the consensus estimate of $4.30 billion. Celestica had a net margin of 7.16% and a return on equity of 39.96%. The company's revenue for the quarter was up 62.4% on a year-over-year basis. During the same quarter last year, the firm earned $1.39 earnings per share. 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 predict that Celestica, Inc. will post 10.15 earnings per share for the current fiscal year.

Insider Activity

In other Celestica news, CEO Robert Mionis sold 23,496 shares of the stock in a transaction that occurred on Thursday, August 13th. The shares were sold at an average price of $362.39, for a total transaction of $8,514,715.44. Following the completion of the sale, the chief executive officer owned 23,396 shares of the company's stock, valued at approximately $8,478,476.44. This represents a 50.11% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Mandeep Chawla sold 16,117 shares of the business's 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 $24,169,778.08. This trade represents a 19.76% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 356,553 shares of company stock valued at $135,238,444. Insiders own 1.10% of the company's stock.

Institutional Trading of Celestica

Institutional investors have recently bought and sold shares of the company. Washington Trust Advisors Inc. acquired a new stake in Celestica during the second quarter worth approximately $28,000. Readystate Asset Management LP acquired a new stake in shares of Celestica during the 2nd quarter worth approximately $1,996,000. HB Wealth Management LLC increased its stake in shares of Celestica by 77.9% in the 2nd quarter. HB Wealth Management LLC now owns 1,411 shares of the technology company's stock valued at $515,000 after acquiring an additional 618 shares in the last quarter. Nilsine Partners LLC lifted its position in shares of Celestica by 1.8% during the 2nd quarter. Nilsine Partners LLC now owns 5,287 shares of the technology company's stock valued at $1,929,000 after acquiring an additional 93 shares during the period. Finally, AlphaGrep UK Ltd bought a new position in Celestica during the second quarter worth $203,000. 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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