Celestica (NYSE:CLS) Shares Down 13.2% After Insider Selling

Celestica, Inc. (NYSE:CLS) (TSE:CLS)’s share price was down 13.2% during mid-day trading on Thursday after an insider sold shares in the company. The stock traded as low as $307.00 and last traded at $314.8950. Approximately 8,745,992 shares traded hands during trading, an increase of 257% from the average daily volume of 2,452,573 shares. The stock had previously closed at $362.76.

Specifically, CFO Mandeep Chawla sold 16,117 shares of the firm’s stock in a transaction dated 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 sale, the chief financial officer directly owned 65,444 shares in the company, valued at $24,169,778.08. This trade represents a 19.76% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Robert Mionis sold 98,453 shares of the company’s stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $368.99, for a total value of $36,328,172.47. The disclosure for this sale is available in the SEC filing. In other Celestica news, CEO Robert Mionis sold 51,061 shares of the stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $368.41, for a total transaction of $18,811,383.01. Following the transaction, the chief executive officer owned 46,892 shares in the company, valued at approximately $17,275,481.72. This represents a 52.13% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink.

Wall Street Analyst Weigh In

CLS has been the topic of several research analyst reports. Royal Bank Of Canada raised their price objective on Celestica from $440.00 to $450.00 and gave the company an “outperform” rating in a report on Wednesday, July 29th. TD Securities raised Celestica from a “hold” rating to a “buy” rating and set a $430.00 target price for the company in a research note on Wednesday, April 29th. Rothschild & Co Redburn initiated coverage on Celestica in a research report on Friday, May 1st. They set a “buy” rating and a $460.00 target price on the stock. TD Cowen raised shares of Celestica from a “hold” rating to a “buy” rating and lifted their price target for the company from $350.00 to $430.00 in a research note on Wednesday, April 29th. Finally, BWS Financial reissued a “buy” rating on shares of Celestica in a report on Tuesday, July 28th. One analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat, Celestica has an average rating of “Moderate Buy” and a consensus price target of $435.80.

Key Headlines Impacting Celestica

Here are the key news stories impacting Celestica this week:

• Positive Sentiment: Celestica completed its equity offering, selling 11.13 million common shares after the underwriters fully exercised their option. The raise is intended to fund capacity expansion and investments supporting multi-year demand for data-center and networking products tied to artificial intelligence. Celestica Completes Equity Offering
• Positive Sentiment: Recent analysis remains constructive on Celestica’s underlying business, citing accelerating AI networking-switch revenue, gross-margin expansion and approximately $1 billion in planned capital spending. The investments could improve the company’s ability to serve hyperscale customers and sustain elevated growth. Celestica Just Unloaded Bad News – Buy It
• Positive Sentiment: Jim Cramer reaffirmed a bullish view after a caller highlighted that 18 of 19 Wall Street analysts rate CLS Buy or Strong Buy. Cramer also pointed to the stock’s roughly 20%–25% pullback from its 52-week high as a reason the valuation may be more attractive. Jim Cramer Reaffirms Buy Stance
• Neutral Sentiment: The offering priced 9.68 million shares at $310 each, with the underwriters’ option increasing total shares sold to 11.13 million. The capital strengthens Celestica’s balance sheet, but investors will need to see sufficient returns from expansion spending to offset the larger share base. Celestica Announces Pricing of Equity Offering
• Negative Sentiment: CLS shares slid after the company announced the approximately $3 billion offering at a discount to the prevailing market price. The issuance is expected to dilute existing shareholders by roughly 8.4%–10% and could create near-term EPS headwinds. Celestica Shares Slide After Equity Offering
• Negative Sentiment: Insider selling added another cautionary signal: CEO Robert Mionis sold more than 149,000 shares across two transactions, while CFO Mandeep Chawla sold 16,117 shares. The sales substantially reduced their direct holdings, although insider transactions do not necessarily indicate a change in business outlook. Celestica Insider Trading

Celestica Trading Up 1.1%

The company has a 50 day simple moving average of $358.25 and a 200 day simple moving average of $334.45. The company has a market capitalization of $36.55 billion, a PE ratio of 33.05 and a beta of 2.06. The company has a debt-to-equity ratio of 0.32, a quick ratio of 0.68 and a current ratio of 1.23.

Celestica (NYSE:CLS) (TSE:CLS) last released its earnings results on Monday, July 27th. The technology company reported $2.54 earnings per share for the quarter, beating the consensus estimate of $2.29 by $0.25. The business had revenue of $4.68 billion for the quarter, compared to the consensus estimate of $4.30 billion. Celestica had a return on equity of 39.96% and a net margin of 7.16%.The business’s quarterly revenue was up 62.4% compared to the same quarter last year. During the same quarter last year, the business posted $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. Analysts anticipate that Celestica, Inc. will post 9.97 earnings per share for the current year.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Renaissance Technologies LLC purchased a new position in shares of Celestica in the first quarter valued at approximately $68,952,000. CIBC Asset Management Inc increased its stake in Celestica by 7.7% during the 4th quarter. CIBC Asset Management Inc now owns 436,922 shares of the technology company’s stock worth $129,499,000 after buying an additional 31,086 shares during the period. Norges Bank acquired a new stake in Celestica during the 4th quarter worth approximately $456,511,000. Marietta Investment Partners LLC acquired a new stake in Celestica during the 4th quarter worth approximately $1,273,000. Finally, BW Gestao de Investimentos Ltda. boosted its position in Celestica by 29.9% in the 4th quarter. BW Gestao de Investimentos Ltda. now owns 31,179 shares of the technology company’s stock valued at $9,217,000 after buying an additional 7,179 shares during the period. Hedge funds and other institutional investors own 67.38% of the company’s stock.

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.