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Nokia Corporation (NOK) announced Tuesday that it has agreed to sell its Enterprise Campus Edge (ECE) business to investment firm AURELIUS. Financial terms were not disclosed.
The deal, expected to close in the first half of 2027, supports Nokia's strategy to streamline its portfolio and focus resources on higher-value growth opportunities.
ECE serves nearly 900 customers worldwide across manufacturing, mining, logistics and other industries. Its portfolio includes private wireless networks, industrial devices, edge computing and AI-powered automation solutions.
Under AURELIUS, ECE will operate independently, allowing it to accelerate innovation and expand its private 5G and industrial AI offerings.
Nokia executive Konstanty Owczarek said the sale would help the company prioritize long-term growth while supporting ECE's next phase.
AURELIUS executive Fabian Steger highlighted opportunities to expand ECE's industrial automation capabilities.
ECE employees are expected to transfer with the business upon closing, subject to applicable regulations and approvals.
Nokia stock fell more than 3% in Tuesday's premarket trading as investors pulled back from technology stocks. Nasdaq futures declined 0.76%, while S&P 500 futures slipped 0.08%.
The stock's decline comes amid broader market weakness following a strong 12-month run. Nokia shares are trading below several key moving averages, signaling weaker short-term momentum.
At $9.56, the stock is 8.1% below its 20-day simple moving average (SMA) of $10.41 and 6.5% below its 50-day SMA of $10.24.
Shares are also 17.3% below the 100-day SMA of $11.57, reflecting continued selling pressure.
The relative strength index (RSI) stands at 45.27, suggesting neutral to slightly bearish momentum. The reading also indicates that the stock has not reached oversold territory.
However, the longer-term trend remains relatively strong. The 20-day SMA is above the 50-day SMA, while the golden cross formed in October 2025 remains intact.
The stock is trading below its 200-day SMA of $10.13 and its 200-day exponential moving average (EMA) of $9.94. These levels could act as resistance during a recovery.
Key resistance stands near $11, followed by the 100-day SMA at $11.57. Meanwhile, $8 represents a potential support level if selling intensifies.
Nokia is scheduled to report earnings on Oct. 22, 2026.
Analysts expect earnings of 8 cents per share, up from 7 cents a year earlier. Revenue is projected at $5.80 billion, compared with $5.64 billion last year.
The stock trades at a price-to-earnings ratio of 73.6.
Nokia carries a consensus Buy rating, with an average analyst price forecast of $16.50.
B. Riley Securities initiated coverage with a Buy rating and $15 price forecast on Sept. 17. Rosenblatt initiated coverage with a Buy rating and $15 price forecast on Sept. 15.
JPMorgan maintained an Overweight rating and raised its price forecast to $21 on June 12.
Nokia's MarketDash Edge rankings show strong momentum despite recent selling pressure.
The stock has a Momentum score of 87.16, indicating relative strength against the broader market.
However, its Quality score of 40.19, Value score of 47.82 and Growth score of 46.91 suggest a more balanced fundamental outlook.
The rankings highlight Nokia's momentum-driven profile, although its recent decline raises questions about the strength of the uptrend.
A recovery above the $9.94-$10.13 range could help improve the technical outlook. However, continued weakness below those levels could signal further downside.
Nokia shares fell 3.43% to $9.56 during Tuesday's premarket trading, according to market data.
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