Celestica (NYSE:CLS) Trading Up 2.5% – Still a Buy?

Celestica, Inc. (NYSE:CLS) (TSE:CLS)’s stock price shot up 2.5% on Thursday . The stock traded as high as $365.52 and last traded at $347.8840. 3,180,398 shares were traded during trading, an increase of 29% from the average session volume of 2,469,993 shares. The stock had previously closed at $339.46.

Key Stories Impacting Celestica

Here are the key news stories impacting Celestica this week:

• Positive Sentiment: Bank of America identified Celestica among 16 AI-related stocks that may offer bargain opportunities following the sector’s pullback. The designation supports the view that recent weakness could attract value-oriented investors. Bank of America Sees Bargains in These 16 Knocked-Down AI Stocks
• Positive Sentiment: Wall Street’s average brokerage recommendation remains favorable, although the reports caution that sell-side ratings can be overly optimistic. Celestica’s prior quarterly results also showed strong momentum, with revenue rising 62.4% year over year and earnings exceeding consensus estimates. Is Celestica a Buy as Wall Street Analysts Look Optimistic?
• Positive Sentiment: Analysts continue to view Celestica as an important beneficiary of AI-related demand across networking, computing and data-center infrastructure. A comparison with Arista Networks highlights the company’s potential growth opportunity as customers expand AI capacity. CLS vs. ANET: Which AI Stock Offers the Better Growth Opportunity?
• Neutral Sentiment: Scotiabank began coverage of Celestica, potentially increasing analyst visibility and institutional interest, though the available report does not specify the firm’s rating or price target. Scotiabank Begins Coverage on Celestica
• Positive Sentiment: Industry commentary says electronics-manufacturing providers are benefiting from rising technology investment, increasingly complex products and greater outsourcing by OEMs—favorable long-term conditions for Celestica’s core business. These 4 Electronics-Manufacturing Stocks Are Surging
• Negative Sentiment: CEO Robert Mionis sold 23,496 shares for approximately $8.5 million, reducing his direct ownership by about 50%. Although the transaction was disclosed through an SEC filing and may be routine, the sizable insider sale can weigh on sentiment, particularly after the stock’s substantial run-up.
• Negative Sentiment: The broader AI trade is experiencing a pullback, creating near-term valuation and momentum pressure for high-beta names such as Celestica. Investors may therefore be taking profits despite the company’s favorable growth outlook.

Analyst Upgrades and Downgrades

CLS has been the subject of a number of recent research reports. Barclays dropped their price target on shares of Celestica from $430.00 to $406.00 and set an “overweight” rating for the company in a research note on Friday, August 7th. Scotiabank initiated coverage on shares of Celestica in a research report on Tuesday. They set a “sector outperform” rating and a $500.00 target price for the company. Citigroup increased their price target on Celestica from $338.00 to $415.00 and gave the company a “buy” rating in a research note on Wednesday, April 29th. Susquehanna lifted their price objective on Celestica from $460.00 to $510.00 and gave the stock a “positive” rating in a research note on Wednesday, April 29th. Finally, The Goldman Sachs Group reiterated a “buy” rating and issued a $475.00 price objective on shares of Celestica in a report on Tuesday, April 28th. One investment analyst has rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat, Celestica presently has an average rating of “Moderate Buy” and an average price target of $438.86.

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 company has a fifty day moving average price of $348.14 and a two-hundred day moving average price of $335.28. The firm has a market cap of $38.45 billion, a P/E ratio of 34.76 and a beta of 2.06.

Celestica (NYSE:CLS) (TSE:CLS) last announced its earnings results on Monday, July 27th. The technology company reported $2.54 EPS for the quarter, topping the consensus estimate of $2.29 by $0.25. The firm had revenue of $4.68 billion for 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 business’s quarterly revenue was up 62.4% on a year-over-year basis. During the same period last year, the company posted $1.39 EPS. Celestica has set its FY 2026 guidance at 11.300-11.300 EPS and its Q3 2026 guidance at 2.880-3.080 EPS. Equities analysts anticipate that Celestica, Inc. will post 9.97 earnings per share for the current year.

Insiders Place Their Bets

In related news, CFO Mandeep Chawla sold 17,000 shares of the stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $399.65, for a total transaction of $6,794,050.00. Following the completion of 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 ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Michael Max Wilson sold 4,168 shares of the business’s stock in a transaction that occurred on Tuesday, May 19th. The shares were sold at an average price of $333.31, for a total value of $1,389,236.08. Following the completion of the sale, the director 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. In the last 90 days, insiders sold 360,721 shares of company stock worth $136,627,680. Corporate insiders own 1.10% of the company’s stock.

Institutional Trading of Celestica

Hedge funds and other institutional investors have recently made changes to their positions in the business. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC bought a new position in Celestica in the fourth quarter valued at approximately $28,000. Swiss RE Ltd. bought a new stake in shares of Celestica during the 4th quarter worth approximately $29,000. Cullen Frost Bankers Inc. acquired a new stake in shares of Celestica in the 4th quarter valued at approximately $30,000. Sittner & Nelson LLC acquired a new stake in shares of Celestica in the 4th quarter valued at approximately $31,000. Finally, Ascentis Independent Advisors bought a new position in shares of Celestica in the first quarter valued at $29,000. 67.38% of the stock is currently owned by institutional investors and hedge funds.

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.