London, Jan 23, 2026, 07:59 GMT — Premarket
- Shares of British American Tobacco ended the session 1.5% higher, closing at 4,313 pence
- Company repurchased 161,326 shares on Jan. 21 under its buyback programme
- Investors are eyeing full-year results due on Feb. 12
British American Tobacco shares are set to draw attention on Friday following the announcement of another share buyback program, extending focus on capital returns after a solid previous session.
The London-listed tobacco firm has long been a reliable “income” play for investors, boasting a dividend yield north of 5% alongside a buyback scheme that trims its share count. A buyback means the company buys back its own shares, which can shrink the number outstanding and possibly boost earnings per share. Hargreaves Lansdown
UK defensives are catching attention amid headline-driven swoops in global trade policy and shifting interest-rate forecasts that are rattling risk appetite. The FTSE 100 edged higher on Thursday, buoyed by a lift in investor mood, Reuters said.
BAT bought 161,326 ordinary shares on Jan. 21, paying between 4,214 and 4,295 pence each. The volume-weighted average price — which factors in trade size — came to 4,251.0001 pence.
The stock finished at 4,313 pence, gaining 65 pence, or 1.53%, from its prior close, based on data from Hargreaves Lansdown.
Investors aren’t just focused on buybacks; they’re also tracking BAT’s pivot to nicotine alternatives amid falling cigarette sales in numerous markets. The Financial Times highlighted this week that products like Vuse vapes and Velo nicotine pouches are gaining traction, becoming central to the stock’s appeal.
That said, the risk of a downside remains. Nicotine products face a changing regulatory environment, and stricter rules on vaping or modern oral products could quickly dent volumes and push up compliance and enforcement costs, traders warned.
Investors are now waiting on BAT’s upcoming buyback announcements and its full-year 2025 earnings, set for release on Feb. 12.
