Nokia Insiders Bet Big on a Turnaround as the Stock Hits a 46% Peak-to-Trough Slide
Published on 07/27/2026 at 16:41 | Redaktion boerse-global.de
Three of Nokia’s top executives have stepped up to buy shares in the wake of a brutal sell-off that has wiped nearly half the company’s market value from its June peak. The purchases, disclosed on July 24, come at a moment when the stock is trading deep in oversold territory and just days before the stock goes ex-dividend for the second of four planned quarterly payouts.
Chairman Timo Ihamuotila led the insider buying, snapping up 60,000 shares at a volume-weighted average price of roughly €8.45, for a total outlay of about €507,100. Patrik Hammarén, head of the Technology Standards division, acquired 43,293 shares at €8.442 each, worth approximately €365,900. The most eye-catching trade came from Pallavi Mahajan, Nokia’s AI chief, who purchased 62,000 American depositary shares at $9.55 each on the New York Stock Exchange, for a total of $592,100.
The insider purchases follow a dramatic reversal of fortune for the Finnish telecom equipment maker. After hitting a record high of €14.97 on June 3, the stock has plunged 46.16%, closing last week at €8.06 — a single-day drop of 6.32% and a weekly loss of 9.03%. The sell-off accelerated after Nokia’s second-quarter results, which delivered a mixed picture that left investors deeply conflicted.
On one hand, the numbers were far from disastrous. Revenue came in at €4.82 billion, while the AI and cloud business saw sales double to €446 million. Order intake in that segment hit €2.8 billion, representing a book-to-bill ratio of 6.3 times — meaning the backlog is more than six times current quarterly revenue, with over half expected to convert into sales within the next twelve months. CEO Justin Hotard framed the challenge as one of supply, not demand: “The demand remains strong, but supply continues to be the central bottleneck for the entire industry.”
Should investors sell immediately? Or is it worth buying Nokia?
Yet the headline net profit collapsed to just €2 million, hammered by restructuring costs and supply chain disruptions. More alarmingly, free cash flow swung to negative €732 million in the second quarter, driven by working capital outflows of €1.15 billion as inventories and receivables swelled. Net liquidity dropped 27% to €2.776 billion.
The cash burn has become the dominant concern. Nokia is sticking with its full-year cash conversion target of 55% to 75%, but the heavy first-half outflows put enormous pressure on the second half to deliver. The company did raise its comparable operating profit guidance slightly, from a range of €2.0–2.5 billion to €2.1–2.6 billion, a move that alongside the insider buying offers a counterweight to the bearish narrative.
Technically, the stock is flashing oversold signals. The 14-day relative strength index stands at 29.5, well below the neutral 50 mark, while the 30-day annualized volatility has surged to 66.88%. The share price now sits 30.76% below its 50-day moving average of €11.64, underscoring how quickly sentiment has soured following the summer rally.
The dividend calendar adds another layer of complexity. Nokia’s board approved a €0.04 per share payout on July 23, with the ex-dividend date set for July 28 and payment on August 6. This is the second of four quarterly installments for fiscal 2025, after the annual general meeting authorized total distributions of up to €0.14 per share on April 9. With the July tranche paid, €0.06 per share remains for the final two quarters.
Nokia at a turning point? This analysis reveals what investors need to know now.
Analysts remain cautious. UBS cut its price target on Nokia to €9.65 on July 24 while maintaining a neutral rating, arguing that positive news is already priced into the stock. The bank’s skepticism echoes broader market wariness about the company’s ability to execute its transformation strategy amid a weak traditional telecom business and persistent chip shortages.
Despite the recent carnage, the longer-term picture remains striking. Nokia shares are still up 44.19% year-to-date and have more than doubled over the past twelve months, gaining 118.96%. The question now is whether the insider buying and the raised profit guidance can stabilize the stock, or whether the cash flow squeeze and supply constraints will continue to dominate the narrative through the second half of the year.
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