Nokia (NYSE:NOK) Trading Down 1.7% - Here's Why

Key Points

• Shares fell 1.7% to about $13.20 on Wednesday on unusually heavy trading (120.0M shares, +89% vs. average), ending a seven‑day rally and reflecting short‑term profit‑taking.
• Analysts point to Nokia’s optical networking business and reported Nvidia interest (rumored $1B/3% stake), along with a Nokia–Lockheed 5G deal, as potential multi‑year growth catalysts tied to AI/data‑center buildouts and defense contracts.
• Market views are mixed — consensus is a Moderate Buy (12 Buys, 4 Holds, 2 Sells) despite a $9.71 consensus price target; fundamentals show a P/E of 34.4 and Nokia raised its quarterly dividend to $0.0468 (1.4% yield) with an ~81% payout ratio.

Shares of Nokia Corporation (NYSE:NOK - Get Free Report) traded down 1.7% during trading on Wednesday . The company traded as low as $13.01 and last traded at $13.1950. 120,040,557 shares were traded during trading, an increase of 89% from the average session volume of 63,498,988 shares. The stock had previously closed at $13.42.

More Nokia News

Here are the key news stories impacting Nokia this week:

• Positive Sentiment: Analyst piece highlights Nokia’s optical networking business as a major growth catalyst—AI/data‑center buildouts could lift data‑center network revenue to ~40% of total by 2028 and support a higher valuation; article also cites a reported $1B/3% stake from Nvidia as a competitiveness signal. Nokia's Optical Networking Business Is A Solid Investment Catalyst
• Positive Sentiment: Nokia Federal Solutions and Lockheed Martin announced a modular, open‑architecture, mission‑critical 5G solution for U.S. defense customers — a validation in the defense/comms market that could drive multi‑year programs and services revenue. Nokia and Lockheed Martin partner on DoD 5G service
• Positive Sentiment: Unusually heavy call‑option buying (431,376 calls, ~311% above average) signals speculative bullish positioning and could increase short‑term upside volatility. Options Activity
• Neutral Sentiment: Nokia joined other licensors in the Sisvel POS patent pool for 2G–5G portfolios, which could steady licensing income but is unlikely to move the stock sharply on its own. Datang Mobile, KPN, NEC and Wilus are Latest Licensors to Join Sisvel POS Patent Pool as Incentive Deadline Nears
• Neutral Sentiment: Market commentary notes the recent run‑up prompted profit‑taking; this is a near‑term technical headwind rather than a fundamental change. Nokia finally slows down after a huge run
• Negative Sentiment: News that Nokia’s rally has been broken (seven‑day streak ended and shares fell) reflects short‑term selling pressure and profit realization by traders. Nokia breaks seven-day rally; shares fall
• Negative Sentiment: Nokia’s exit from the fixed‑wireless‑access (FWA) segment is being framed as an urgent portfolio purge; while it may improve focus, it also hands immediate market opportunity to competitors like Inseego. Nokia’s FWA exit shows urgency of portfolio purge – and makes Inseego a global player overnight

Analyst Upgrades and Downgrades

A number of analysts have commented on the stock. Santander upgraded shares of Nokia from a "neutral" rating to an "outperform" rating in a research report on Monday, February 2nd. Danske downgraded shares of Nokia from a "buy" rating to a "hold" rating in a research report on Tuesday, February 24th. Wall Street Zen downgraded shares of Nokia from a "buy" rating to a "hold" rating in a research report on Sunday. Barclays restated an "underweight" rating on shares of Nokia in a research report on Wednesday, April 29th. Finally, Morgan Stanley reiterated an "overweight" rating on shares of Nokia in a report on Tuesday, April 28th. Twelve investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat, Nokia currently has a consensus rating of "Moderate Buy" and a consensus price target of $9.71.

Nokia Price Performance

The company has a current ratio of 1.58, a quick ratio of 1.36 and a debt-to-equity ratio of 0.11. The business's fifty day moving average is $9.05 and its 200 day moving average is $7.44. The firm has a market capitalization of $75.77 billion, a P/E ratio of 34.41, a P/E/G ratio of 2.60 and a beta of 1.12.

Nokia (NYSE:NOK - Get Free Report) last released its earnings results on Tuesday, March 31st. The technology company reported $0.06 EPS for the quarter. Nokia had a net margin of 4.02% and a return on equity of 9.22%. The business had revenue of $5.21 billion for the quarter. As a group, analysts forecast that Nokia Corporation will post 0.4 EPS for the current year.

Nokia Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, May 12th. Stockholders of record on Tuesday, April 28th will be issued a dividend of $0.0468 per share. This is an increase from Nokia's previous quarterly dividend of $0.04. This represents a $0.19 dividend on an annualized basis and a dividend yield of 1.4%. The ex-dividend date is Tuesday, April 28th. Nokia's dividend payout ratio (DPR) is presently 81.25%.

Institutional Investors Weigh In On Nokia

A number of large investors have recently made changes to their positions in the company. Arcus Capital Partners LLC acquired a new stake in shares of Nokia during the first quarter valued at approximately $260,000. Assetmark Inc. raised its holdings in shares of Nokia by 12.1% during the first quarter. Assetmark Inc. now owns 14,704 shares of the technology company's stock valued at $118,000 after acquiring an additional 1,591 shares during the period. Angeles Wealth Management LLC raised its holdings in shares of Nokia by 6.0% during the first quarter. Angeles Wealth Management LLC now owns 40,076 shares of the technology company's stock valued at $322,000 after acquiring an additional 2,270 shares during the period. Allspring Global Investments Holdings LLC raised its holdings in shares of Nokia by 20.6% during the first quarter. Allspring Global Investments Holdings LLC now owns 68,669 shares of the technology company's stock valued at $588,000 after acquiring an additional 11,706 shares during the period. Finally, Sanctuary Advisors LLC raised its holdings in shares of Nokia by 230.4% during the first quarter. Sanctuary Advisors LLC now owns 87,460 shares of the technology company's stock valued at $703,000 after acquiring an additional 60,992 shares during the period. Institutional investors and hedge funds own 5.28% of the company's stock.

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.

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