Celestica (NYSE:CLS) Shares Gap Down – Here’s Why

Celestica, Inc. (NYSE:CLS) (TSE:CLS) gapped down prior to trading 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.

Trending Headlines about Celestica

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?

Wall Street Analysts Forecast Growth

CLS has been the topic of several analyst reports. TD Cowen reaffirmed a “hold” rating and issued a $238.00 price objective on shares of Celestica in a research report on Friday, October 3rd. BMO Capital Markets set a $370.00 price target on Celestica and gave the stock an “outperform” rating in a research note on Wednesday, October 29th. JPMorgan Chase & Co. increased their price objective on Celestica from $295.00 to $360.00 and gave the company an “overweight” rating in a research report on Wednesday, October 29th. Barclays boosted their target price on Celestica from $357.00 to $359.00 and gave the stock an “overweight” rating in a research report on Friday, November 14th. Finally, BNP Paribas Exane restated an “outperform” rating and set a $300.00 target price on shares of Celestica in a research note on Thursday, September 25th. One analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and four have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $340.75.

Celestica Price Performance

The company has a market capitalization of $33.54 billion, a P/E ratio of 47.43 and a beta of 1.87. The company has a debt-to-equity ratio of 0.37, a current ratio of 1.47 and a quick ratio of 0.88. The firm’s 50-day moving average is $309.62 and its 200-day moving average is $259.99.

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

Insider Buying and Selling at Celestica

In related news, Director Laurette T. Koellner acquired 6,000 shares of the business’s stock in a transaction that occurred on Thursday, October 30th. The stock was bought at an average cost of $341.67 per share, for a total transaction of $2,050,020.00. Following the purchase, the director owned 6,000 shares in the company, valued at $2,050,020. The trade was a ∞ increase in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. 0.52% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Golden State Wealth Management LLC raised its position in shares of Celestica by 102.5% during the second quarter. Golden State Wealth Management LLC now owns 164 shares of the technology company’s stock valued at $26,000 after buying an additional 83 shares during the last quarter. MassMutual Private Wealth & Trust FSB increased its holdings in Celestica by 42.5% in the 3rd quarter. MassMutual Private Wealth & Trust FSB now owns 124 shares of the technology company’s stock valued at $31,000 after acquiring an additional 37 shares during the last quarter. First Horizon Corp purchased a new stake in Celestica in the 3rd quarter worth $31,000. ST Germain D J Co. Inc. bought a new position in shares of Celestica during the 2nd quarter valued at about $37,000. Finally, Twin Peaks Wealth Advisors LLC purchased a new position in shares of Celestica during the second quarter valued at about $40,000. 67.38% of the stock is currently owned by 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.