Todd Cooper Executes Sell Order: Offloads $11.19M In Celestica Stock

A substantial insider sell was reported on February 5, by Todd Cooper, President at Celestica CLS, based on the recent SEC filing.

What Happened: Cooper opted to sell 91,490 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 $11,187,397.

As of Thursday morning, Celestica shares are down by 6.53%, currently priced at $134.29.

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.

Financial Milestones: Celestica’s Journey

Revenue Growth: Over the 3 months period, Celestica showcased positive performance, achieving a revenue growth rate of 1.85% as of 31 December, 2024. This reflects a substantial 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.

Analyzing Profitability Metrics:

• Gross Margin: The company shows a low gross margin of 11.67%, suggesting potential challenges in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Celestica’s EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance 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.

Market Valuation:

• 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: With a relatively high Price to Sales ratio of 1.77 as compared to the industry average, the stock might be considered overvalued 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 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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Why Insider Activity Matters in Finance

Insightful as they may be, insider transactions should be considered alongside a thorough examination of other investment criteria.

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

Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.

Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.

Unlocking the Meaning of 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.