Nokia (NYSE:NOK) Trading Down 1.7% – Here’s Why

Nokia Corporation (NYSE:NOK) dropped 1.7% during trading on Wednesday . The company traded as low as $13.01 and last traded at $13.1950. Approximately 120,040,557 shares changed hands during trading, an increase of 89% from the average daily volume of 63,498,988 shares. The stock had previously closed at $13.42.

Nokia News Summary

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

Analysts Set New Price Targets

NOK has been the subject of a number of research reports. Barclays restated an “underweight” rating on shares of Nokia in a research report on Wednesday, April 29th. Northland Securities set a $13.00 price objective on shares of Nokia in a research note on Monday, April 20th. The Goldman Sachs Group upgraded shares of Nokia from a “sell” rating to a “neutral” rating in a research note on Monday, March 30th. Santander upgraded shares of Nokia from a “neutral” rating to an “outperform” rating in a research note on Monday, February 2nd. Finally, Argus upgraded shares of Nokia from a “hold” rating to a “buy” rating and set a $15.00 price objective on the stock in a research note on Monday, April 27th. Twelve research analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $9.71.

Nokia Trading Down 1.7%

The stock has a market cap of $75.77 billion, a price-to-earnings ratio of 34.41, a price-to-earnings-growth ratio of 2.60 and a beta of 1.12. The company has a debt-to-equity ratio of 0.11, a quick ratio of 1.36 and a current ratio of 1.58. The company’s 50 day simple moving average is $9.05 and its two-hundred day simple moving average is $7.44.

Nokia (NYSE:NOK) last posted its earnings results on Tuesday, March 31st. The technology company reported $0.06 EPS for the quarter. The company had revenue of $5.21 billion during the quarter. Nokia had a net margin of 4.02% and a return on equity of 9.22%. Research analysts expect that Nokia Corporation will post 0.4 EPS for the current fiscal year.

Nokia Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, May 12th. Shareholders of record on Tuesday, April 28th will be given a $0.0468 dividend. This is a positive change from Nokia’s previous quarterly dividend of $0.04. This represents a $0.19 annualized dividend and a yield of 1.4%. The ex-dividend date of this dividend is Tuesday, April 28th. Nokia’s payout ratio is presently 81.25%.

Institutional Trading of Nokia

Several large investors have recently added to or reduced their stakes in NOK. Amundi bought a new stake in Nokia in the first quarter worth approximately $776,000. AQR Capital Management LLC grew its position in Nokia by 27.5% in the first quarter. AQR Capital Management LLC now owns 186,997 shares of the technology company’s stock worth $985,000 after acquiring an additional 40,276 shares in the last quarter. Millennium Management LLC grew its position in Nokia by 6,539.2% in the first quarter. Millennium Management LLC now owns 2,841,558 shares of the technology company’s stock worth $14,975,000 after acquiring an additional 2,798,758 shares in the last quarter. NewEdge Advisors LLC grew its position in Nokia by 6,204.9% in the first quarter. NewEdge Advisors LLC now owns 60,464 shares of the technology company’s stock worth $319,000 after acquiring an additional 59,505 shares in the last quarter. Finally, Goldman Sachs Group Inc. boosted its holdings in shares of Nokia by 8.7% during the 1st quarter. Goldman Sachs Group Inc. now owns 12,550,274 shares of the technology company’s stock worth $66,140,000 after buying an additional 1,002,033 shares during the period. 5.28% of the stock is owned by institutional investors.

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.