Sell Alert: Todd Cooper Cashes Out $1.22M In Celestica Stock

On February 4, a recent SEC filing unveiled that Todd Cooper, President at Celestica CLS made an insider sell.

What Happened: After conducting a thorough analysis, Cooper sold 9,538 shares of Celestica. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The total transaction value is $1,216,476.

Monitoring the market, Celestica's shares up by 0.89% at $121.96 during Tuesday's morning.

About Celestica

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.

Key Indicators: Celestica's Financial Health

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. 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.

Interpreting Earnings Metrics:

• Gross Margin: The company faces challenges with a low gross margin of 11.67%, suggesting potential difficulties in cost control and profitability compared to its 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: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.42.

Evaluating Valuation:

• Price to Earnings (P/E) Ratio: Celestica's P/E ratio of 33.48 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 1.49 suggests overvaluation in the eyes of investors, considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio of 19.67, the company's market valuation exceeds industry averages.

Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.

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Illuminating the Importance of Insider Transactions

Insider transactions contribute to decision-making but should be supplemented by a comprehensive investment analysis.

In the context of 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 outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.

A Closer Look at Important Transaction Codes

In the domain of transactions, investors frequently turn their focus to those taking place in the open market, as meticulously outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals 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.