London, Feb 5, 2026, 08:01 GMT — Regular session
- Shares of British American Tobacco slipped in early London trade following the announcement of yet another share buyback program.
- Investors are eyeing the Bank of England’s decision due Thursday, along with BAT’s full-year results set for next week.
British American Tobacco shares dipped 0.07% to 4,491 pence in early London trading on Thursday, following a 0.27% drop the day before. The stock kicked off at 4,493 pence and fluctuated between 4,487 and 4,500 pence on light morning volume. 1
Timing is key as UK blue-chips creep up ahead of the Bank of England’s Thursday decision, following the FTSE 100’s record close on Wednesday. Axel Rudolph, senior financial analyst at IG, pointed to a “rotation out of high-multiple growth names … into value-oriented stocks,” highlighting the broader move toward defensive shares. 2
BAT faces urgent money questions: the size of its cash returns, the pace at which it can reduce shares, and management’s outlook for the year ahead. While a steady stream of buyback announcements doesn’t shift the narrative by itself, it does set a baseline as the earnings date approaches.
On Feb. 4, BAT repurchased 136,167 shares from UBS AG London Branch at a volume-weighted average price of 4,541.4024 pence, with trades spanning 4,485 to 4,572 pence. The company plans to cancel these shares, leaving 2,176,526,268 shares outstanding (excluding treasury shares) and 132,976,327 held in treasury. A volume-weighted average reflects the average price paid, factoring in trade size. 3
The company handed out its latest quarterly dividend of 60.06 pence per share on Wednesday, according to market data from Hargreaves Lansdown. 4
BAT ranks among the FTSE 100’s top dividend payers, often viewed as a “defensive” pick by investors seeking steady cash returns amid limited growth. The company’s buyback plan boosts its appeal by cutting the share count, which typically pushes up earnings per share, a key profit metric.
There’s little room for complacency. If next week’s earnings or guidance fall short, buybacks won’t prevent a selloff. The stock also faces risks from changing tax and regulatory policies, plus rising competition in nicotine products beyond traditional cigarettes.
Investors are eyeing BAT’s preliminary 2025 results, due Thursday, Feb. 12 at 07:00 GMT. The company will host a webcast at 09:30 GMT, featuring CEO Tadeu Marroco and interim CFO Javed Iqbal, it said. 5
