Nokia’s Share Buyback Program: A Detailed Look
On 13th March 2025, Nokia Corporation, a leading global technology company, announced the acquisition of its own shares as part of its ongoing share buyback program. The program was initiated on 25th November 2024, with the intention of offsetting the dilutive effect of new Nokia shares issued to Infinera Corporation shareholders and certain Infinera Corporation share-based incentives. Here’s a breakdown of the number of shares purchased and their respective weights average prices on that particular day:
Shares Acquired on 13th March 2025
-
XHEL: 2,763,031 shares at a weighted average price of EUR 4.79 per share
-
CEUX: 1,163,317 shares at a weighted average price of EUR 4.79 per share
-
BATE: No shares were purchased
-
AQEU: 169,829 shares at a weighted average price of EUR 4.79 per share
-
TQEX: 126,839 shares at a weighted average price of EUR 4.79 per share
This buyback program, which was authorized by Nokia’s Annual General Meeting on 3rd April 2024, is in line with the Market Abuse Regulation (EU) 596/2014 (MAR), the Commission Delegated Regulation (EU) 2016/1052, and targets the repurchase of 150 million shares for a maximum aggregate purchase price of EUR 900 million.
What Does This Mean for Me?
As an individual investor, this share buyback program could potentially be beneficial for you. When a company repurchases its own shares, the total number of outstanding shares decreases, which can lead to an increase in the earnings per share (EPS) for the remaining shareholders. This, in turn, could potentially lead to an increase in the share price, as the market may value the company more highly due to its improved earnings per share.
What Does This Mean for the World?
From a global perspective, Nokia’s share buyback program is a sign of the company’s confidence in its future growth prospects. It demonstrates the company’s belief that its shares are undervalued in the market. Furthermore, the repurchased shares will no longer be available for trading, which can help to reduce the overall supply of Nokia shares, potentially leading to a tighter market and increased demand for the stock.
Conclusion
Nokia Corporation’s share buyback program, which involves the repurchase of up to 150 million shares for a maximum aggregate purchase price of EUR 900 million, represents a significant investment in the company. This program, which is ongoing until the end of 2025, has already seen the acquisition of over 4.2 million shares on 13th March 2025. For individual investors, this program could potentially lead to increased earnings per share and a higher share price. From a global perspective, it is a sign of Nokia’s confidence in its future growth prospects and a potential catalyst for increased demand for the stock.
As always, it’s important to remember that investing in the stock market involves risk, and past performance is not indicative of future results. It’s essential to do your own research and consider seeking advice from a financial advisor before making any investment decisions.
