Celestica (NYSE:CLS) Shares Gap Down – Should You Sell?

Celestica, Inc. (NYSE:CLS) (TSE:CLS)’s share price gapped down before the market opened on Thursday . The stock had previously closed at $309.76, but opened at $300.92. Celestica shares last traded at $287.4090, with a volume of 2,813,884 shares trading hands.

Key Celestica News

Here are the key news stories impacting Celestica this week:

• Positive Sentiment: Growth in the CCS (cloud, communications & storage) segment from AI data-center demand and new high-speed switches is expected to lift Q4 revenue and help offset weakness elsewhere. Will Growth in the CCS Segment Boost Celestica’s Q4 Earnings?
• Positive Sentiment: Product momentum: Celestica has rolled out AI-focused storage solutions and 1.6TbE switches that position it to capture data-center spending if AI capex continues. CLS Stock Before Q4 Earnings: A Smart Buy or Risky Investment?
• Positive Sentiment: Analyst bullishness: Aletheia Capital flagged strong upside and raised its price target substantially, signaling conviction in longer-term share appreciation. Aletheia Capital Forecasts Strong Price Appreciation for Celestica (NYSE:CLS) Stock
• Neutral Sentiment: Brokerage consensus sits around a “Moderate Buy” rating, indicating general optimism but not unanimous conviction. Celestica, Inc. (NYSE:CLS) Given Average Rating of “Moderate Buy” by Brokerages
• Neutral Sentiment: TD Securities set a $305 price target with a “hold” rating, reflecting a cautious near-term view despite upside potential. Analyst Ratings (TD Securities PT)
• Neutral Sentiment: Timing: Q4 earnings are imminent (late Jan), so short-term volatility may persist as the market re-prices on the report. Celestica (CLS) Expected to Announce Earnings on Wednesday
• Negative Sentiment: ATS (advanced technology solutions) revenues are declining due to soft end-market demand, inventory pressures and macro headwinds — a headwind to overall growth and margins. Will Declining ATS Revenues Hinder Celestica’s Q4 Earnings?
• Negative Sentiment: Valuation and execution risk: Several previews caution that CLS trades at a premium (high P/E) and that weakness in ATS or a softer-than-expected CCS beat could trigger a notable pullback. CLS Stock Before Q4 Earnings: A Smart Buy or Risky Investment?

Analysts Set New Price Targets

Several brokerages have recently issued reports on CLS. BMO Capital Markets set a $370.00 price objective on Celestica and gave the stock an “outperform” rating in a report on Wednesday, October 29th. The Goldman Sachs Group upped their price target on shares of Celestica from $340.00 to $440.00 and gave the company a “buy” rating in a research note on Wednesday, October 29th. Citigroup raised shares of Celestica from a “neutral” rating to a “buy” rating and lifted their price objective for the stock from $212.00 to $375.00 in a research note on Monday, November 10th. Weiss Ratings restated a “buy (b)” rating on shares of Celestica in a research report on Wednesday, October 8th. Finally, Barclays lifted their price target on Celestica from $357.00 to $359.00 and gave the stock an “overweight” rating in a research report on Friday, November 14th. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $340.75.

Celestica Price Performance

The company has a current ratio of 1.47, a quick ratio of 0.88 and a debt-to-equity ratio of 0.37. The company has a market capitalization of $33.54 billion, a PE ratio of 47.43 and a beta of 1.87. The stock’s 50-day moving average is $309.62 and its two-hundred day moving average is $259.99.

Celestica (NYSE:CLS) (TSE:CLS) last posted its quarterly earnings results on Monday, October 27th. The technology company reported $1.58 EPS for the quarter, topping the consensus estimate of $1.45 by $0.13. Celestica had a net margin of 6.35% and a return on equity of 30.53%. The company had revenue of $3.19 billion for the quarter, compared to the consensus estimate of $3.01 billion. During the same quarter last year, the firm posted $1.04 EPS. The firm’s revenue was up 27.8% compared to the same quarter last year. On average, equities analysts predict that Celestica, Inc. will post 4.35 EPS for the current year.

Insider Transactions at Celestica

In related news, Director Laurette T. Koellner bought 6,000 shares of the business’s stock in a transaction on Thursday, October 30th. The shares were bought at an average price of $341.67 per share, for a total transaction of $2,050,020.00. Following the completion of the purchase, the director directly owned 6,000 shares of the company’s stock, valued at approximately $2,050,020. This trade represents a ? increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.52% of the stock is owned by company insiders.

Institutional Investors Weigh In On Celestica

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Thompson Davis & CO. Inc. purchased a new position in shares of Celestica during the second quarter worth $328,000. Y Intercept Hong Kong Ltd grew its position in Celestica by 406.3% during the 2nd quarter. Y Intercept Hong Kong Ltd now owns 52,606 shares of the technology company’s stock worth $8,212,000 after purchasing an additional 42,215 shares during the period. Fortis Capital Advisors LLC purchased a new position in shares of Celestica during the 2nd quarter valued at about $343,000. Light Street Capital Management LLC purchased a new position in shares of Celestica during the 2nd quarter valued at about $26,422,000. Finally, TD Waterhouse Canada Inc. lifted its holdings in shares of Celestica by 2.2% in the 2nd quarter. TD Waterhouse Canada Inc. now owns 150,422 shares of the technology company’s stock valued at $22,356,000 after buying an additional 3,221 shares during the period. 67.38% of the stock is currently owned by hedge funds and other 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.