Nokia Oyj (HEL:NOKIA) experienced a decline of 2.15% in midday trading on Thursday, reaching 11.14 euros by 15:02 EEST, despite Helsinki's main indexes moving higher. The drop came after a regulatory filing revealed that FMR LLC's voting rights in the Finnish telecom equipment maker had fallen below the 5% threshold as of June 29, though the firm still holds over 5% of the company's shares.
The Helsinki index rose 0.19% and the Helsinki 25 gained 0.41% on the same day, highlighting the stock's underperformance. According to TradingView data, Nokia shares are down 7.44% this week and 11.40% this month, although they remain 149.60% higher over the past year. The 52-week high stands at 15.00 euros, meaning the current price is approximately 25.7% below that peak.
FMR Stake Details
Nokia disclosed late on June 30 that FMR's indirect voting rights dropped to 4.92% from 5.05%, while its shareholding fell to 5.20% from 5.26%. The voting rights decline represents roughly 7.5 million votes, and the share adjustment amounts to about 3.4 million shares. At the current price, FMR's remaining stake of 298.8 million shares is valued at approximately 3.3 billion euros. The filing did not include a transaction price for the reduction.
In the U.S., Nokia's American Depositary Receipts (NYSE:NOK) also moved lower, settling at $12.91 on Wednesday, a 2.79% decline. Market volume was 55.1 million shares, well below the 50-day average of 120.2 million, according to MarketWatch.
Orange Belgium Contract Win
Amid the negative sentiment, Nokia announced on Thursday that Orange Belgium (EBR:OBEL) had selected it as the sole supplier for a multi-year optical transport network upgrade in Belgium. The deal, which involves Nokia's 1830 PSS platform and WaveSuite software, did not disclose financial terms. Orange Belgium CTO Philippe Toussaint described the new fixed-mobile optical network as a "cornerstone of that commitment," while Nokia's Guil Yazdi, Vice President and Client Executive for Orange, called it a "significant project for Nokia."
This contract aligns with Nokia's strategic focus on optical and IP networks, which CEO Justin Hotard highlighted in April as an area where the company is "increasing our growth assumption." In the first quarter, Network Infrastructure sales grew 6% on a constant-currency and portfolio basis, with Optical Networks surging 20%.
Q2 Earnings Outlook
Nokia reaffirmed its 2026 comparable operating profit target of 2.0 billion to 2.5 billion euros. For the second quarter, the company expects net sales to climb 5% to 9% sequentially, with comparable operating profit representing 12% to 16% of the full-year figure. This implies a Q2 profit range of approximately 240 million to 400 million euros. The company will report its second-quarter and half-year results on July 23, with the closed period beginning June 23.
The stock's recent pullback comes after a significant rally, and investors will be closely watching the Q2 numbers to assess whether the growth momentum can be sustained. The reduction in FMR's voting rights, while not a full exit, adds an element of uncertainty ahead of the earnings release.
