Chief Executive Officer Of Celestica Makes $6.71M Sale

A substantial insider sell was reported on February 4, by ROBERT MIONIS, Chief Executive Officer at Celestica CLS, based on the recent SEC filing.

What Happened: MIONIS's decision to sell 52,588 shares of Celestica was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The total value of the sale is $6,707,073.

During Tuesday's morning session, Celestica shares up by 0.89%, currently priced at $121.96.

Delving into Celestica's Background

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's Financial Performance

Revenue Growth: Celestica's revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2024, the company achieved a revenue growth rate of approximately 1.85%. This indicates 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.

Exploring Profitability:

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 11.67%, indicating potential difficulties in maintaining 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.

Insights into Valuation Metrics:

• Price to Earnings (P/E) Ratio: The P/E ratio of 33.48 is lower than the industry average, implying a discounted valuation for Celestica's stock.

• 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): The company's EV/EBITDA ratio 19.67 is above the industry average, suggesting that the market values the company more highly for each unit of EBITDA. This could be attributed to factors such as strong growth prospects or superior operational efficiency.

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

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.

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.

Breaking Down the Significance 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.