London, March 17, 2026, 13:08 GMT
British American Tobacco shares traded close to 4,572 pence in London Tuesday, steady after the company reported more buyback activity. The stock fluctuated from 4,542 to 4,598 pence. BAT disclosed purchasing 121,379 shares on March 16, paying an average of 4,577.0247 pence apiece.
This new disclosure lands at a time when BAT is counting on cash returns to reassure investors as its growth loses steam. Back in February, chief executive Tadeu Marroco doubled down on his pledge for “robust cash returns.” The company also stuck with its previous message: 2026 results are likely to hit only the bottom end of its revenue, adjusted operating profit, and earnings-per-share targets. BAT
Here’s how a buyback works: the company shells out cash to purchase its own shares, then cancels them, leaving a slimmer share count on the market. That move can push up earnings per share, even if sales aren’t exactly surging. Still, investors tend to look for evidence that the core business has momentum as well.
Enter BAT’s smokeless strategy. Last month, Reuters said Velo—BAT’s nicotine pouch—locked in the second spot in U.S. market share, trailing only Philip Morris International’s Zyn and ahead of Altria’s On!. Marroco described himself as “extremely encouraged by the U.S. performance of Velo.” Reuters
The U.S. is still the main variable here. Back in February, BAT told Reuters that putting a U.S. import block on certain unauthorized disposable vapes might slash the illegal market by up to a third. Still, the company cautioned it doesn’t expect to see the full payoff before 2027.
London stocks pushed higher Tuesday, with the FTSE 100 advancing 0.6% as of 1042 GMT. Shares in BAT held steady, little changed from Monday’s finish.
Still, the risks remain. BAT is up against a London shareholder lawsuit claiming the company didn’t adequately disclose past sanctions-linked dealings in North Korea. Management, for its part, has already pointed to regulatory headaches in Australia and Bangladesh as headwinds for 2026.
The stock’s up roughly 6% from its level a month back, but hasn’t managed to break through the recent 52-week high of 4,673 pence. Now, the focus shifts to whether buybacks and Velo’s performance will actually accelerate profit growth, instead of just trimming the share count.
