Nokia (NYSE:NOK) Trading 3.9% Higher – Should You Buy?

Nokia Corporation (NYSE:NOK)’s share price was up 3.9% during mid-day trading on Tuesday . The stock traded as high as $10.38 and last traded at $10.3510. Approximately 33,559,508 shares were traded during trading, a decline of 59% from the average session volume of 81,396,039 shares. The stock had previously closed at $9.96.

Key Stories Impacting Nokia

Here are the key news stories impacting Nokia this week:

• Positive Sentiment: Nokia’s continued visibility in consumer electronics may provide modest brand-support benefits as HMD Global launched the Nokia 300 Charge, a rugged feature phone with a 3,700mAh battery, reverse-charging capability and a built-in power bank. The product is positioned as an inexpensive backup phone with unusually long battery life. Nokia 300 Charge launched with 3700mAh battery, reverse charging and rugged design
• Neutral Sentiment: The Nokia 300 Charge launch was also highlighted by technology publications, emphasizing its flashlight, dedicated power-out function and ability to recharge smartphones. While favorable publicity could support Nokia-branded device demand, HMD—not Nokia Corporation—is responsible for the handset business, so the direct effect on NOK’s revenue is likely limited. Nokia’s New Dumbphone Can Recharge Your Smartphone
• Neutral Sentiment: Additional coverage describes the Nokia 300 Charge as a low-cost feature phone with a battery rated for extended use. The launch may reinforce Nokia’s brand recognition in emerging markets, but it is unlikely to significantly change the outlook for Nokia’s core telecom-network, cloud and infrastructure businesses. The new Nokia 300 Charge has a dedicated power out button and a 3,700mAh battery
• Negative Sentiment: Reports that Nokia is exiting or further reducing its presence in China highlight continuing geopolitical and competitive pressure in telecom equipment. The move could reduce exposure to a difficult market and concentrate resources elsewhere, but it also underscores lost market opportunity and risks to near-term growth as the global 6G and AI-networking competition intensifies. Nokia China exit deepens telecom split as Nvidia bets on 6G AI

Analyst Upgrades and Downgrades

A number of equities analysts have recently weighed in on the stock. Barclays reissued an “underweight” rating on shares of Nokia in a research report on Wednesday, April 29th. Wall Street Zen lowered shares of Nokia from a “buy” rating to a “hold” rating in a research report on Sunday, May 3rd. Argus upgraded Nokia from a “hold” rating to a “buy” rating and set a $15.00 price target for the company in a report on Monday, April 27th. Morgan Stanley reissued an “overweight” rating on shares of Nokia in a research note on Friday, May 22nd. Finally, Deutsche Bank Aktiengesellschaft restated a “buy” rating on shares of Nokia in a report on Friday, May 15th. Thirteen equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $12.57.

Nokia Stock Performance

The company’s fifty day moving average price is $11.16 and its two-hundred day moving average price is $10.76. The company has a debt-to-equity ratio of 0.09, a quick ratio of 1.22 and a current ratio of 1.50. The firm has a market capitalization of $59.44 billion, a PE ratio of 73.94, a price-to-earnings-growth ratio of 1.20 and a beta of 1.19.

Nokia (NYSE:NOK) last released its earnings results on Thursday, July 23rd. The technology company reported $0.08 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.07 by $0.01. Nokia had a net margin of 3.49% and a return on equity of 9.83%. The firm had revenue of $5.50 billion during the quarter, compared to the consensus estimate of $5.57 billion. During the same period in the previous year, the firm earned $0.04 earnings per share. Nokia’s revenue was up 8.4% compared to the same quarter last year. As a group, equities analysts expect that Nokia Corporation will post 0.39 earnings per share for the current year.

Institutional Trading of Nokia

Institutional investors and hedge funds have recently made changes to their positions in the company. Fifth Third Bancorp boosted its holdings in Nokia by 248.7% in the fourth quarter. Fifth Third Bancorp now owns 3,815 shares of the technology company’s stock valued at $25,000 after acquiring an additional 2,721 shares during the last quarter. Wexford Capital LP acquired a new stake in Nokia during the third quarter worth about $29,000. Caitong International Asset Management Co. Ltd purchased a new position in shares of Nokia in the 3rd quarter worth about $34,000. Smithfield Trust Co acquired a new position in shares of Nokia in the 4th quarter valued at about $35,000. Finally, CIBC Private Wealth Group LLC lifted its stake in shares of Nokia by 86.1% in the 4th quarter. CIBC Private Wealth Group LLC now owns 5,994 shares of the technology company’s stock valued at $39,000 after purchasing an additional 2,773 shares in the last quarter. 5.28% of the stock is currently owned by institutional investors and hedge funds.

Nokia Company Profile

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.