Zacks Investment Research Downgrades Celestica (NYSE:CLS) to Hold

Celestica (NYSE:CLS) (TSE:CLS) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Tuesday, Zacks.com reports.

According to Zacks, “Celestica, Inc. is one of the largest electronics manufacturing services company in the world, serving the computer, and communications sectors. The company provides competitive manufacturing technology and service solutions for printed circuit assembly and system assembly, as well as post-manufacturing support to many of the world’s leading original equipment manufacturers. Celestica’s extensive depth and breadth of offerings supports a wide variety of customer requirements from low volume, high complexity custom products to high volume commodity products. “

Other analysts have also recently issued research reports about the company. TD Securities upped their price objective on Celestica from $8.00 to $9.00 and gave the company a “hold” rating in a research report on Thursday, January 28th. Royal Bank of Canada upped their price objective on Celestica from $7.50 to $9.00 and gave the company a “sector perform” rating in a research report on Thursday, January 28th. One analyst has rated the stock with a sell rating, six have issued a hold rating and two have given a buy rating to the company. Celestica has a consensus rating of “Hold” and a consensus price target of $8.71.

Shares of NYSE:CLS traded down $0.26 during midday trading on Tuesday, reaching $8.12. 374,293 shares of the company’s stock traded hands, compared to its average volume of 314,474. The company has a market cap of $1.05 billion, a price-to-earnings ratio of 30.08, a P/E/G ratio of 0.36 and a beta of 2.48. The company has a debt-to-equity ratio of 0.36, a quick ratio of 0.97 and a current ratio of 1.67. Celestica has a one year low of $5.31 and a one year high of $9.38. The stock has a 50 day moving average of $8.46 and a 200 day moving average of $8.05.

Celestica (NYSE:CLS) (TSE:CLS) last announced its quarterly earnings results on Wednesday, April 28th. The technology company reported $0.22 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.20 by $0.02. The firm had revenue of $1.23 billion for the quarter, compared to the consensus estimate of $1.22 billion. Celestica had a return on equity of 8.57% and a net margin of 0.57%. The company’s quarterly revenue was down 6.3% on a year-over-year basis. During the same period in the prior year, the company posted $0.16 earnings per share. Sell-side analysts predict that Celestica will post 0.82 EPS for the current fiscal year.

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Janney Montgomery Scott LLC boosted its stake in shares of Celestica by 36.7% in the first quarter. Janney Montgomery Scott LLC now owns 95,439 shares of the technology company’s stock worth $799,000 after acquiring an additional 25,600 shares during the period. Adirondack Research & Management Inc. boosted its stake in shares of Celestica by 11.3% in the first quarter. Adirondack Research & Management Inc. now owns 214,149 shares of the technology company’s stock worth $1,792,000 after acquiring an additional 21,800 shares during the period. Hillsdale Investment Management Inc. boosted its stake in shares of Celestica by 27.5% in the first quarter. Hillsdale Investment Management Inc. now owns 2,947,107 shares of the technology company’s stock worth $24,632,000 after acquiring an additional 634,800 shares during the period. Capital Insight Partners LLC boosted its stake in shares of Celestica by 24.7% in the first quarter. Capital Insight Partners LLC now owns 186,053 shares of the technology company’s stock worth $1,557,000 after acquiring an additional 36,883 shares during the period. Finally, First Hawaiian Bank boosted its stake in shares of Celestica by 6.4% in the first quarter. First Hawaiian Bank now owns 67,702 shares of the technology company’s stock worth $567,000 after acquiring an additional 4,100 shares during the period. 57.17% of the stock is owned by hedge funds and other institutional investors.

Celestica Company Profile

Celestica Inc provides hardware platform and supply chain solutions in North America, Europe, and Asia. It operates through two segments, Advanced Technology Solutions, and Connectivity & Cloud Solutions. The company offers a range of product manufacturing and related supply chain services, including design and development, engineering, supply chain management, new product introduction, component sourcing, electronics manufacturing and assembly, testing, complex mechanical assembly, systems integration, precision machining, order fulfillment, logistics, asset management, product licensing, and after-market repair and return services.

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