#Nokia executives bought €3 million worth of shares

rajeev-suri-nokia-ceo

After issuing warnings about the decline of the mobile networks market in 2017, Nokia’s share hit a 2-year low. The stock’s worth fell under €3.70 ($4.01), and some high-ranked Nokia executives decided the moment is right to buy.

Nokia 16, 11, 16

CEO of Nokia Rajeev Suri purchased over half a million shares worth almost 2 million euros, or his 2 annual salaries. Chairman Risto Siilasmaa bought about 250.000 shares worth almost 1 million euros. Member of the board, Kari Stadigh, spent about 423.00 euros for 108.715 shares.

Press Release: 1, 2, 3

  • Michael

    wow. so, these assholes dribbled out bad news after bad news and then take advantage at lows. I have a real problem with that. ultimate insider trading. done with nokia. gfy nokia.

    • Everything is reported to EU’s regulatory agency, so it should be legal.

      • Michael

        No doubt it’s legal. But you can’t argue that it is insiders trading with knowledge not available to everyone. CEO knew he was going to drip out bad news with increasing clarity and he waited until after all that to buy. Also, shareholders have 0 clarity on ongoing licensing agreements, research, etc. Nokia insiders obviously do. They have the advantage of information that regular shareholders do not. All we know is he won’t comment on negotiations, but he has a VERY good idea of where the negotiations are heading. Had they waited a quarter or at least a couple months, I wouldn’t have a problem. This move is a real FY to shareholders.

        • I mostly agree, but all executive transactions must undergo regulatory approval. It would be insider trading if they sold their shares when the price was 7$. Buying shares could just be a signal to shareholders to have faith in the company. No doubt they have info we don’t know. Maybe they saw Nokia-branded android smartphones (prototypes) 🙂

          • Michael

            I agree with what you say and with me, it is the timing. I’ve got no problem with Insiders buying and selling at appropriate times (selling at 7 while Nokia was executing and the stock was moving toward 8 is no problem) but the timing here with the hindsight that Suri knew exactly how he planned to dribble out increasing clear bad news is in a very gray area in my book. As I said, we’ll see what information is released in the next few months. If we find out that licensing negotiations have gone better than expected or some other majorly positive news that drives the stock higher I’ll be writing a complaint to the SEC. I’m that angry.

          • Trust me it’s all about the money, but we here like more the way that Nokia is selling its products. We love the story behind it, but also does the stakeholders. Those people are not naive and they are also monitoring the situation and have their insider information. Suri gave quite big amount of company’s money back, and of course he ill profit from it, but he can also go down with it. This is more a way of showing that management believes in what Nokia is doing because not so many stakeholders wants Nokia back into phone business.

          • Michael

            I get that to a point. I’ve been buying Nokia phones since 2002. I took a break and tried an iPhone 3G and hated the experience. I was ecstatic to hear Nokia joining with Microsoft to create a Windows Phone and bought a Lumia 800. On the strength of that product I invested heavily in a beaten down Nokia – since 2011.

            How exactly is Nokia now selling its products? Nokia isn’t in the phone business. They are licensing their name. We know next to nothing other than there will be another set of phones on the market at some point with Nokia on the case. Withings will actually be a small drag on the bottom line for the near future. I also haven’t seen anything all that exciting coming out of Withings. At least it wasn’t an 8 billion dollar purchase like Navteq.

            Networking? Their newest information says that they’ll return to anemic growth starting in 2018 to continue through 2021.

            I don’t see anything exciting – right now- about the way Nokia is selling its products and the CEO has done nothing to make me feel good about the future.

            Personally, I could not care less about a piddly 2% dividend when the stock has dropped from mid-8’s to most recently almost $4.00. What they should be doing is buying back stock. You say they are! but read the find print. They are buying back stock but they can use it for other purposes like employee incentives. Watch the outstanding shares and lets see where we are in a year.

            You have seen my posts before and I was a big supporter. My hope was that Suri’s intentions were to be a big player in the health wearables (and everything that goes with that) and the way to do this was to have a successful Nokia brand in phones. That was before the slow drip of bad news. I thought the last straw was at his presentation for the Capital Markets Day, but this CEO buying shares at a low he created is just icing on the cake.

            Like I said, we’ll see. If he issues some great news in the next couple months, I’m calling BS.