Celestica (NYSE:CLS) Trading Down 13.2% – Should You Sell?

Shares of Celestica, Inc. (NYSE:CLS) (TSE:CLS) traded down 13.2% during mid-day trading on Thursday . The stock traded as low as $307.00 and last traded at $314.8950. Approximately 8,745,992 shares changed hands during trading, an increase of 257% from the average session volume of 2,452,573 shares. The stock had previously closed at $362.76.

Key Celestica News

Here are the key news stories impacting Celestica this week:

• Positive Sentiment: Celestica priced its previously announced offering at $310 per share, raising approximately $3 billion before expenses. Management plans to use the proceeds to expand capacity, fund capital expenditures and support demand for AI infrastructure and data-center technology. Celestica Announces Pricing of Equity Offering
• Positive Sentiment: Recent coverage highlights accelerating AI networking switch revenue, gross-margin expansion and strong hyperscaler demand. Celestica is reportedly investing about $1 billion in capital expenditures and securing raw materials to support multi-year customer growth. Celestica Just Unloaded Bad News – Buy It
• Positive Sentiment: Several research articles continue to identify CLS as a high-quality growth stock, citing its earnings momentum, AI exposure and potential long-term upside. Technical commentary also recently viewed the shares’ move above the 50-day moving average as a bullish signal. Buy 5 Top-Ranked Growth Stocks for August
• Neutral Sentiment: The offering strengthens Celestica’s balance sheet and provides funding for expansion, but its eventual benefit depends on the company converting heavy investment into sustained revenue and profit growth.
• Negative Sentiment: The issuance of 9,677,419 new common shares represents substantial dilution for existing shareholders. Analysts estimate approximately 8.4%–10% short-term dilution, with potential EPS headwinds, prompting some investors to downgrade the stock. Celestica’s $3B Raise: Investors Don’t Like Dilution And EPS Headwinds
• Negative Sentiment: The $310 offering price was viewed as discounted relative to the prior market price, increasing selling pressure and shifting investor attention from Celestica’s strong operating outlook to near-term shareholder dilution. Celestica Shares Slide After Launching $3 Billion Equity Offering

Analysts Set New Price Targets

A number of equities research analysts have recently weighed in on CLS shares. Canadian Imperial Bank of Commerce raised their price target on shares of Celestica from $480.00 to $500.00 and gave the company an “outperform” rating in a research note on Wednesday, July 29th. TD Cowen raised shares of Celestica from a “hold” rating to a “buy” rating and lifted their target price for the stock from $350.00 to $430.00 in a research note on Wednesday, April 29th. BWS Financial reissued a “buy” rating on shares of Celestica in a research note on Tuesday, July 28th. Stifel Nicolaus set a $500.00 price objective on shares of Celestica in a report on Tuesday, July 28th. Finally, Susquehanna lifted their price objective on shares of Celestica from $460.00 to $510.00 and gave the stock a “positive” rating in a research report on Wednesday, April 29th. One research analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating and two have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $437.00.

Celestica Price 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 business’s 50 day moving average price is $360.33 and its two-hundred day moving average price is $334.55. The stock has a market cap of $36.20 billion, a P/E ratio of 32.73 and a beta of 2.06.

Celestica (NYSE:CLS) (TSE:CLS) last issued its quarterly earnings data on Monday, July 27th. The technology company reported $2.54 EPS for the quarter, topping the consensus estimate of $2.29 by $0.25. Celestica had a net margin of 7.16% and a return on equity of 39.96%. The business had revenue of $4.68 billion during the quarter, compared to analyst estimates of $4.30 billion. During the same period last year, the business posted $1.39 earnings per share. Celestica’s quarterly revenue was up 62.4% compared to the same quarter last year. 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, sell-side analysts expect that Celestica, Inc. will post 9.97 earnings per share for the current fiscal year.

Insider Buying and Selling at Celestica

In other news, CFO Mandeep Chawla sold 17,000 shares of the business’s stock in a transaction on Monday, June 15th. The shares were sold at an average price of $399.65, for a total transaction of $6,794,050.00. Following the sale, the chief financial officer owned 82,444 shares in the company, valued at approximately $32,948,744.60. The trade was a 17.10% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Michael Max Wilson sold 4,168 shares of the business’s stock in a transaction dated Tuesday, May 19th. The stock was sold at an average price of $333.31, for a total transaction of $1,389,236.08. Following the sale, the director directly owned 24,718 shares in the company, valued at $8,238,756.58. The trade was a 14.43% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders sold 171,594 shares of company stock valued at $67,021,079. 1.10% of the stock is currently owned by company insiders.

Institutional Trading of Celestica

Institutional investors have recently bought and sold shares of the company. Bank of New York Mellon Corp purchased a new position in Celestica in the second quarter worth about $55,706,000. Leeward Financial Partners LLC purchased a new position in Celestica in the 2nd quarter worth approximately $377,000. Focus Partners Advisor Solutions LLC bought a new position in Celestica in the 2nd quarter valued at approximately $302,000. State of Wyoming bought a new stake in shares of Celestica in the 2nd quarter worth $284,000. Finally, Clearstead Trust LLC purchased a new stake in shares of Celestica during the second quarter valued at $477,000. 67.38% of the stock is owned by hedge funds and other institutional investors.

About Celestica

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.