Michael Douglas Parker Takes Money Off The Table, Sells $332K In Celestica Stock

A substantial insider sell was reported on February 5, by Michael Douglas Parker, Chief Legal Officer at Celestica CLS, based on the recent SEC filing.

What Happened: Parker’s recent Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday unveiled the sale of 2,723 shares of Celestica. The total transaction value is $332,342.

The latest update on Thursday morning shows Celestica shares down by 6.57%, trading at $134.23.

Discovering Celestica: A Closer Look

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.

Financial Milestones: Celestica’s Journey

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. As compared to its peers, the company achieved a growth rate higher than the average among peers in Information Technology sector.

Evaluating Earnings Performance:

• Gross Margin: The company shows a low gross margin of 11.67%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.

• Earnings per Share (EPS): Celestica’s EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 1.3.

Debt Management: Celestica’s debt-to-equity ratio is below the industry average. With a ratio of 0.42, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Assessing Valuation Metrics:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 39.8 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 1.77, Celestica’s stock is perceived as being overvalued in the market, particularly in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 23.13 reflects market recognition of Celestica’s value, positioning it as more highly valued compared to industry peers.

Market Capitalization Analysis: With a profound presence, the company’s market capitalization is above industry averages. This reflects substantial size and strong market recognition.

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Exploring the Significance of Insider Trading

Emphasizing the importance of a comprehensive approach, considering insider transactions is valuable, but it’s crucial to evaluate them in conjunction with other investment factors.

When discussing legal matters, the term “insider” refers to any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Important Transaction Codes

When dissecting transactions, the focal point for investors is often those occurring in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates 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.