Nokia Corporation: Repurchase of Own Shares
Stock Exchange Release 13 November 2024 at 22:30 EET
Espoo, Finland – On 13 November 2024 Nokia Corporation (LEI: 549300A0JPRWG1KI7U06) has acquired its own shares (ISIN FI0009000681) as follows:
Trading venue (MIC Code) Number of shares Weighted average price / share, EUR* XHEL 1,621,845 4.20 CEUX 300,000 4.21 BATE – – AQEU – – TQEX – – Total 1,921,845 4.20 * Rounded to two decimals On 25 January 2024, Nokia announced that its Board of Directors is initiating a share buyback program to return up to EUR 600 million of cash to shareholders in tranches over a period of two years. The first phase of the share buyback program started on 20 March 2024.
Share buybacks are a common corporate finance strategy used by companies to return excess cash to its shareholders. By repurchasing its own shares, Nokia is essentially investing in itself, signaling to investors that the company believes its stock is undervalued. This can lead to an increase in share price as the supply of shares in the market decreases.
Furthermore, share buybacks can also improve key financial ratios such as earnings per share (EPS) and return on equity (ROE), making the company more attractive to potential investors. This move by Nokia may indicate confidence in its financial position and future prospects.
From an investor perspective, the share buyback program could result in increased shareholder value as the company returns cash to its owners. It also provides an alternative to dividends as a way to reward shareholders for their investment in the company.
Overall, Nokia’s decision to repurchase its own shares reflects its commitment to creating value for its shareholders and confidence in its long-term sustainability.
Effect on Me:
As a shareholder in Nokia Corporation, the share buyback program could potentially increase the value of my investment by reducing the number of shares outstanding and boosting the stock price. This move by Nokia demonstrates the company’s commitment to creating shareholder value and could positively impact my overall portfolio performance.
Effect on the World:
Nokia’s share buyback program may have a broader impact on the market as a whole, signaling confidence in the company’s financial health and potential for future growth. This could lead to increased investor interest in the tech sector and contribute to overall market sentiment. Additionally, the return of cash to shareholders through share buybacks could stimulate economic activity as investors may reinvest their gains in other areas of the economy.
Conclusion:
Overall, Nokia Corporation’s decision to repurchase its own shares is a strategic move that aims to create value for its shareholders and signal confidence in its future prospects. This action could benefit both individual investors like myself and the broader market as a whole, contributing to a positive outlook for the company and potentially stimulating economic growth.
