Insider Unloading: Yann Etienvre Sells $10.17M Worth Of Celestica Shares

A substantial insider sell was reported on February 5, by Yann Etienvre, Chief Operations Officer at Celestica CLS, based on the recent SEC filing.

What Happened: Etienvre opted to sell 83,179 shares of Celestica, according to a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The transaction’s total worth stands at $10,171,128.

Celestica shares are trading down 6.53% at $134.29 at the time of this writing on Thursday morning.

Get to Know Celestica Better

Celestica Inc offers supply chain solutions. The company has two operating and reportable segments: Advanced Technology Solutions (ATS) and Connectivity & Cloud Solutions (CCS). The ATS segment consists of the ATS end market and is comprised of the Aerospace and Defense, Industrial, health tech, and Capital Equipment businesses. Its Capital Equipment business is comprised of the semiconductor, display, and robotics equipment businesses, and the CCS segment consists of Communications and Enterprise end markets, Enterprise end market is comprised of its servers and storage businesses. The company generates a majority of its revenue from the Connectivity & Cloud Solutions segment.

Celestica: Delving into Financials

Revenue Growth: Celestica displayed positive results in 3 months. As of 31 December, 2024, the company achieved a solid revenue growth rate of approximately 1.85%. This indicates a notable increase in the company’s top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Information Technology sector.

Profitability Metrics: Unlocking Value

• Gross Margin: With a low gross margin of 11.67%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

• Earnings per Share (EPS): Celestica’s EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 1.3.

Debt Management: Celestica’s debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.42.

Financial Valuation Breakdown:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 39.8 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: The current P/S ratio of 1.77 is above industry norms, reflecting an elevated valuation for Celestica’s stock and potential overvaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 23.13 positions the company as being more valued compared to industry benchmarks.

Market Capitalization: Positioned above industry average, the company’s market capitalization underscores its superiority in size, indicative of a strong market presence.

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The Importance of Insider Transactions

While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor’s decision-making process.

Within the legal framework, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

A Closer Look at Important Transaction Codes

Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Celestica’s Insider Trades.

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This article was generated by Benzinga’s automated content engine and reviewed by an editor.