Nokia’s Share Buyback Program: A Closer Look
Nokia Corporation, a global leader in communications technology and network infrastructure, recently announced the acquisition of its own shares on 21 February 2025. According to the stock exchange release, Nokia bought a total of 1,384,423 shares, with a weighted average price of 4.78 EUR per share. This purchase was made on various trading venues, including XHEL, CEUX, BATE, AQEU, and TQEX.
Background
In November 2024, Nokia disclosed that its Board of Directors had initiated a share buyback program to mitigate the dilutive effect of new Nokia shares issued to Infinera Corporation shareholders and certain Infinera Corporation share-based incentives. The repurchase program, in compliance with the European Union’s Market Abuse Regulation (MAR), the Commission Delegated Regulation (EU) 2016/1052, and the authorization granted by Nokia’s Annual General Meeting on 3 April 2024, started on 25 November 2024 and is scheduled to end on 31 December 2025. The target is to repurchase 150 million Nokia shares for a maximum aggregate purchase price of 900 million EUR.
Impact on Nokia
The recent share buyback program by Nokia could positively impact the company in several ways. By repurchasing its own shares, Nokia is reducing the number of outstanding shares, leading to an increase in the earnings per share (EPS). This, in turn, could potentially boost the stock price, as investors often value a higher EPS. Additionally, the buyback program demonstrates Nokia’s confidence in its own stock and its belief in its future growth prospects.
Impact on Shareholders
For Nokia’s shareholders, the buyback program could result in several benefits. With fewer shares outstanding, each shareholder will own a larger percentage of the company. Furthermore, the repurchased shares will be retired, reducing the overall supply of Nokia shares in the market. This could potentially lead to a higher stock price, as the demand for shares remains the same or even increases.
Impact on the World
Nokia’s share buyback program may also have broader implications for the technology industry and the global economy. By repurchasing its own shares, Nokia is signaling its commitment to its shareholders and its belief in its long-term growth potential. Additionally, the program could potentially contribute to the overall stability of the European stock market, as it shows that companies in the region are actively managing their capital structures and investing in their future growth.
Conclusion
Nokia’s recent share buyback program, which involved the acquisition of 1,384,423 shares on 21 February 2025, is a significant development for the communications technology and network infrastructure giant. By repurchasing its own shares, Nokia is not only reducing the number of outstanding shares, potentially leading to an increase in earnings per share and a higher stock price, but also demonstrating its confidence in its future growth prospects. The impact of this buyback program extends beyond Nokia, as it could contribute to the overall stability of the European stock market and signal a renewed commitment by companies to invest in their long-term growth.
- Nokia Corporation bought 1,384,423 shares on 21 February 2025.
- Weighted average price per share: 4.78 EUR.
- Repurchase program started on 25 November 2024 and ends on 31 December 2025.
- Target: repurchase 150 million shares for a maximum aggregate purchase price of 900 million EUR.
- Positive impact on Nokia’s EPS and potential boost to stock price.
- Contributes to overall stability of European stock market.
