Nokia (NYSE:NOK) Trading 2.6% Higher - Still a Buy?

Key Points

• Nokia shares rose 2.6% to about $10.59 on elevated trading volume, supported by a broader optical-networking rally and expectations that AI infrastructure spending will boost demand for high-capacity communications equipment.
• Investors are watching Nokia’s potential role in upcoming 6G and AI-RAN trials with Nvidia and T-Mobile, as well as its expanded compound-semiconductor footprint. However, commercial adoption and resulting orders remain unproven.
• Analyst sentiment is generally positive, with a “Moderate Buy” consensus, 13 Buy ratings and an average price target of $12.57. Nokia’s latest quarter beat EPS expectations and revenue rose 8.4% year over year, though revenue came in slightly below forecasts and the stock remains below its 50-day moving average.

Nokia Corporation (NYSE:NOK - Get Free Report)'s stock price rose 2.6% during mid-day trading on Thursday . The stock traded as high as $10.91 and last traded at $10.5850. Approximately 111,574,296 shares traded hands during mid-day trading, an increase of 36% from the average session volume of 81,899,711 shares. The stock had previously closed at $10.32.

Nokia News Roundup

Here are the key news stories impacting Nokia this week:

• Positive Sentiment: A broad optical-networking rally, sparked by Lumentum’s strong quarterly results, lifted Nokia along with other communications-equipment companies. The move suggests investors expect AI infrastructure spending to increase demand for high-capacity networking equipment. Nokia, Celestica, and Applied Optoelectronics Rally After Lumentum Sparks Broad Optics Rally
• Positive Sentiment: Investor interest is also focused on upcoming 6G and AI-RAN trials involving Nvidia and T-Mobile. Nokia is viewed as a potential beneficiary if these real-world tests validate AI-driven radio networks and lead to commercial deployments. What the Coming 6G Trials With Nvidia, T-Mobile Could Mean for Nokia Investors
• Positive Sentiment: Reports of Nokia expanding its compound-semiconductor footprint reinforce expectations that the company is positioning for growth in advanced optical and communications hardware. A possible role in Orange’s Spanish mobile network could provide an additional customer opportunity. Nokia expands compound semiconductor footprint
• Neutral Sentiment: The AI-networking narrative remains speculative: Nokia’s shares have gained substantially over the past year, while the success of the Nvidia-T-Mobile trials and Nokia’s ability to convert them into orders are not yet established. What the Coming 6G Trials With Nvidia, T-Mobile Could Mean for Nokia Investors
• Negative Sentiment: Investors remain cautious ahead of inflation data, and the optics sector’s mixed reaction to recent earnings highlights the risk that enthusiasm may not translate evenly across networking suppliers. Nokia also remains below its recent highs after a sharp three-month decline. Nokia enters a cautious session before the inflation report

Analyst Ratings Changes

Several analysts have recently weighed in on the company. Nordea Equity Research upgraded Nokia from a "hold" rating to a "buy" rating in a research note on Friday, April 24th. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating on shares of Nokia in a research note on Friday, May 15th. Northland Securities set a $20.00 price target on Nokia in a report on Wednesday, June 3rd. Argus upgraded Nokia from a "hold" rating to a "buy" rating and set a $15.00 price objective for the company in a research note on Monday, April 27th. Finally, Barclays restated an "underweight" rating on shares of Nokia in a report on Wednesday, April 29th. Thirteen analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $12.57.

Nokia Trading Up 2.6%

The firm has a 50-day moving average of $11.83 and a 200 day moving average of $10.55. The company has a current ratio of 1.50, a quick ratio of 1.22 and a debt-to-equity ratio of 0.09. The stock has a market capitalization of $60.78 billion, a price-to-earnings ratio of 75.61, a PEG ratio of 1.11 and a beta of 1.19.

Nokia (NYSE:NOK - Get Free Report) last released its quarterly earnings results on Thursday, July 23rd. The technology company reported $0.08 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.07 by $0.01. Nokia had a return on equity of 9.83% and a net margin of 3.49%.The company had revenue of $5.50 billion during the quarter, compared to analysts' expectations of $5.57 billion. During the same quarter in the prior year, the business posted $0.04 earnings per share. The company's revenue for the quarter was up 8.4% compared to the same quarter last year. As a group, equities analysts predict that Nokia Corporation will post 0.39 EPS for the current fiscal year.

Institutional Trading of Nokia

Institutional investors have recently made changes to their positions in the stock. J2 Capital Management Inc boosted its stake in Nokia by 2.0% in the 1st quarter. J2 Capital Management Inc now owns 68,204 shares of the technology company's stock valued at $548,000 after buying an additional 1,319 shares in the last quarter. Janney Montgomery Scott LLC raised its stake in Nokia by 6.9% during the fourth quarter. Janney Montgomery Scott LLC now owns 22,426 shares of the technology company's stock worth $145,000 after acquiring an additional 1,450 shares in the last quarter. Kathmere Capital Management LLC lifted its holdings in shares of Nokia by 14.0% during the first quarter. Kathmere Capital Management LLC now owns 12,081 shares of the technology company's stock valued at $97,000 after acquiring an additional 1,483 shares during the period. Xponance LLC boosted its stake in shares of Nokia by 13.0% in the 4th quarter. Xponance LLC now owns 13,590 shares of the technology company's stock valued at $88,000 after purchasing an additional 1,567 shares in the last quarter. Finally, Assetmark Inc. grew its holdings in shares of Nokia by 12.1% in the 1st quarter. Assetmark Inc. now owns 14,704 shares of the technology company's stock worth $118,000 after purchasing an additional 1,591 shares during the last quarter. 5.28% of the stock is owned by institutional investors and hedge funds.

About Nokia

Nokia Corporation, headquartered in Espoo, Finland, is a global telecommunications and technology company with roots dating back to 1865. Over its long history the company moved from forestry and cable operations into electronics and telecommunications, becoming widely known in the 1990s and 2000s for its mobile phones. In recent years Nokia refocused its business toward network infrastructure, software and technology licensing, and research and development, following the divestiture of its handset manufacturing business and the acquisition of Alcatel‑Lucent in 2016, which brought Bell Labs into its portfolio.

Today Nokia's core activities center on designing, building and supporting communications networks and related software.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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