LONDON, Jan 21, 2026, 08:48 GMT — Regular session
- BAT shares edged up 0.1% in early London trade, rebounding slightly from a 2.65% drop on Jan. 20
- Company disclosed it repurchased 160,365 shares in its latest buyback batch and plans to cancel them
- UK inflation figures sustain hopes for rate cuts ahead of next month’s data release
British American Tobacco (BATS.L) shares edged up 0.1% to 4,262 pence (£42.62) by 08:48 GMT Wednesday, clawing back some of the losses from Tuesday. 1
The modest bounce is notable since BAT is a major, dividend-focused player in the FTSE 100, known for its defensive stance. The stock slipped 2.65% on Tuesday, closing at £42.57 amid a broader market decline, and saw lighter trading volume than usual. 2
BAT announced on Wednesday that it repurchased 160,365 shares on Jan. 20 as part of its ongoing buyback program and intends to cancel them. The company paid a volume-weighted average price (VWAP) of 4,253.43 pence per share. Once cancelled, BAT will have roughly 2.18 billion shares outstanding, excluding treasury shares. 3
Traders were tracking key macro data as UK inflation climbed to 3.4% in December, driven by rising airfares and tobacco costs. Still, markets anticipate a slowdown soon. “Although the uptick is larger than expected, for now it’s a speed-bump,” noted Adam Deasy, economist at PwC. 4
In tobacco, Imperial Brands tapped John Rishton as its new chair, marking another development in a week packed with shareholder-return and governance news for the company. 5
BAT investors are keeping a close eye on cash flow and how the company divides it among dividends, buybacks, and debt repayment. Even routine buyback announcements can shake the stock early on, particularly following a steep drop the day before.
Stocks with hefty dividends often behave like a play on interest rates. If investors bet on falling rates, those steady payouts become more appealing; but when inflation heats up, the numbers don’t add up as well.
Still, the buyback won’t erase the key risks facing the sector: tougher regulation, rising excise taxes, and the risk that cigarette sales decline faster than prices can compensate. Margin pressure could also build if competition in newer nicotine products drives a more promotional market.
BAT’s full-year 2025 results arrive Feb. 12, marking the next major event. Investors will focus on guidance, cash-return strategies, and any signals on demand trends for both cigarettes and newer product lines. 6
