Mandeep Chawla Takes Money Off The Table, Sells $11.10M In Celestica Stock

It was reported on February 5, that Mandeep Chawla, Chief Financial Officer at Celestica CLS executed a significant insider sell, according to an SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Wednesday showed that Chawla sold 90,771 shares of Celestica. The total transaction amounted to $11,099,477.

During Thursday's morning session, Celestica shares down by 6.53%, currently priced at $134.29.

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.

A Deep Dive into Celestica's Financials

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 competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Information Technology sector.

Analyzing Profitability 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 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 at 0.42, reflecting a lower dependency on debt financing and a more conservative financial approach.

Valuation Analysis:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 39.8, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• 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): Celestica's EV/EBITDA ratio of 23.13 exceeds industry averages, indicating a premium valuation in the market

Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.

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Illuminating the Importance of Insider Transactions

Investors should view insider transactions as part of a multifaceted analysis and not rely solely on them for decision-making.

In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

The Insider's Guide to Important Transaction Codes

Examining transactions, investors often concentrate on those unfolding 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.