Celestica (NYSE:CLS) Trading Up 10.8% – Here’s Why

Celestica, Inc. (NYSE:CLS) (TSE:CLS)’s stock price traded up 10.8% on Tuesday . The stock traded as high as $342.13 and last traded at $340.42. 2,866,105 shares were traded during trading, an increase of 23% from the average session volume of 2,329,634 shares. The stock had previously closed at $307.34.

Key Celestica News

Here are the key news stories impacting Celestica this week:

• Positive Sentiment: Several pieces ahead of earnings remain constructive, including coverage saying Celestica could be undervalued on earnings optimism and that the company has the right mix of growth and estimate support to potentially beat next week’s results. Celestica (TSX:CLS) Could Be 33% Below Fair Value On Earnings Optimism
• Positive Sentiment: Analyst-style writeups also highlighted Celestica as a strong growth stock, pointing to above-average financial growth and ongoing AI demand as reasons bulls still like the name. Is Celestica (CLS) a Solid Growth Stock? 3 Reasons to Think “Yes”
• Positive Sentiment: Celestica also announced a leadership move, naming Steven Dorwart to lead its Connectivity and Cloud Solutions unit, which may support continuity in a key growth division. Celestica (TSX:CLS) Appoints Steven Dorwart To Lead Its Connectivity And Cloud Unit
• Neutral Sentiment: Recent valuation-focused articles are split: one says the stock still looks above fair value after its huge multi-year gain, while another suggests market multiples may still leave room for further upside if cash flow growth continues. Celestica (TSX:CLS) Stock Looks Above Fair Value Despite Its Huge Run
• Neutral Sentiment: Multiple previews ahead of earnings noted improving expectations, but also emphasized that the stock has cooled recently, suggesting traders are waiting for the actual report before re-rating the shares. Celestica (CLS) Earnings Expected to Grow: What to Know Ahead of Next Week’s Release
• Negative Sentiment: A bearish article said Celestica has moved into a bear market and is down more than 35% from this year’s highs, reflecting worries that AI-related enthusiasm may be cooling and that the stock could face more downside if earnings disappoint. Celestica stock tumbles ahead of earnings: rebound or more pain?
• Negative Sentiment: One Seeking Alpha preview warned about an “overbuild dilemma” in the 1.6T AI supercycle, highlighting the risk that infrastructure spending could slow if demand normalizes. Celestica Q2 Preview: The 1.6T Supercycle Meets The Overbuild Dilemma

Analysts Set New Price Targets

Several research analysts recently commented on CLS shares. TD Securities raised shares of Celestica from a “hold” rating to a “buy” rating and set a $430.00 price target on the stock in a research note on Wednesday, April 29th. Zacks Research upgraded shares of Celestica from a “hold” rating to a “strong-buy” rating in a research note on Friday, June 26th. BMO Capital Markets lifted their price target on shares of Celestica from $370.00 to $450.00 and gave the company an “outperform” rating in a research note on Friday, April 24th. UBS Group boosted their price target on Celestica from $355.00 to $400.00 and gave the company a “neutral” rating in a report on Wednesday, April 29th. Finally, Bank of America increased their price objective on Celestica from $400.00 to $430.00 and gave the stock a “buy” rating in a research note on Monday, April 20th. Two analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and two have issued a Hold rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Buy” and an average target price of $427.42.

Celestica Trading Up 10.8%

The company has a debt-to-equity ratio of 0.36, a quick ratio of 0.73 and a current ratio of 1.26. The company has a market capitalization of $39.14 billion, a P/E ratio of 41.16, a PEG ratio of 0.70 and a beta of 2.05. The company’s fifty day simple moving average is $365.49 and its 200-day simple moving average is $331.59.

Celestica (NYSE:CLS) (TSE:CLS) last posted its quarterly earnings results on Monday, April 27th. The technology company reported $2.16 EPS for the quarter, beating the consensus estimate of $2.08 by $0.08. Celestica had a net margin of 6.95% and a return on equity of 36.91%. The business had revenue of $3.96 billion during the quarter, compared to analyst estimates of $3.97 billion. During the same quarter in the previous year, the business posted $1.20 EPS. The company’s quarterly revenue was up 52.8% compared to the same quarter last year. Celestica has set its FY 2026 guidance at 10.150-10.150 EPS and its Q2 2026 guidance at 2.140-2.340 EPS. Research analysts predict that Celestica, Inc. will post 9.57 earnings per share for the current year.

Insider Buying and Selling

In other news, CFO Mandeep Chawla sold 17,000 shares of Celestica stock in a transaction 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 transaction, the chief financial officer directly owned 82,444 shares in the company, valued at approximately $32,948,744.60. This trade represents a 17.10% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CEO Robert Mionis sold 66,056 shares of the business’s stock in a transaction on Monday, June 15th. The stock was sold at an average price of $400.06, for a total value of $26,426,363.36. Following the completion of the transaction, the chief executive officer directly owned 134,328 shares of the company’s stock, valued at approximately $53,739,259.68. The trade was a 32.96% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 161,168 shares of company stock valued at $63,190,485 over the last 90 days. Corporate insiders own 1.10% of the company’s stock.

Hedge Funds Weigh In On Celestica

Large investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. grew its position in shares of Celestica by 1.5% in the 4th quarter. Vanguard Group Inc. now owns 4,811,695 shares of the technology company’s stock worth $1,423,333,000 after buying an additional 73,022 shares during the last quarter. JPMorgan Chase & Co. raised its stake in Celestica by 24.8% in the fourth quarter. JPMorgan Chase & Co. now owns 4,017,623 shares of the technology company’s stock valued at $1,187,650,000 after buying an additional 798,782 shares during the last quarter. Northwestern Mutual Wealth Management Co. boosted its holdings in Celestica by 5,806,149.2% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 3,657,937 shares of the technology company’s stock worth $1,081,323,000 after acquiring an additional 3,657,874 shares in the last quarter. Franklin Resources Inc. grew its position in Celestica by 18.6% during the 4th quarter. Franklin Resources Inc. now owns 2,278,214 shares of the technology company’s stock worth $673,471,000 after purchasing an additional 356,797 shares during the last quarter. Finally, Cibc World Market Inc. grew its holdings in shares of Celestica by 30.6% during the fourth quarter. Cibc World Market Inc. now owns 2,265,680 shares of the technology company’s stock valued at $670,279,000 after buying an additional 530,535 shares during the last quarter. 67.38% of the stock is currently owned by 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.