BT Group Share Price Forecast 2021 – Time to Buy BT Shares?
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Shares of multinational telecommunications holding company BT Group (LSE: BT.A) are in red today at the moment (July 26 11:22 UTC+1) as the share price has been dropping since the past month. It makes investors wonder if this is the right time to purchase BT.A shares.
BT Group – Technical Analysis
The financial statement released by BT group reveals that the company has a market cap of £18.311B while the total assets are worth £50.877B. The revenue of the company was £21.34B in 2020 compared to £22.81B in 2019. The market is open at the moment of writing at £183.00 with a downtrend of -0.95%.
According to the technical information of BT.A, Moving Averages like Exponential Moving Average (10)(184.33), Simple Moving Average (10)(183.71), Volume Weighted Moving Average (20)(187.77), and Simple Moving Average (20)(187.67) are pointing towards a sell action. Oscillators such as Momentum (10)(-4.07), MACD Level (12, 26), and Bull Bear Power (-3.05) are also pointing towards selling, while Stochastic RSI Fast (3, 3, 14, 14)(66.10) are being neutral.
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Recent Developments
Established in 1946 in the United Kingdom and headquartered in London, BT Group is a holding company engaging in communications services. It functions through several segments, such as consumer, global services, enterprise, openreach, and more.
On June 28, BT Group signed a partnership with satellite-based global communications network OneWeb to offer broadband to the remotest areas in the UK. Both companies will recognize collaboration opportunities further and develop new services outside Britain for the international customers of BT Group.
On June 29, the company took part in the Shared Rural Network Program in rural Scotland, launched by the UK government. This is a scheme to improve connectivity throughout the country. BT Group joins Telefonica and Vodafone to manufacture and upgrade phone masts with 4G coverage. The program aims to reach more than 91% of all electoral regions in Scotland. It will also cover an extra 16,000 kilometres of roads in the UK in the range of a 4G signal, aiming for 95% of the UK territory by 2025.
On July 1, BT Group announced to spend £15B through its Openreach segment to develop a fibre network that would serve 25M houses by 2026. The long-term price deal is offered to attract wholesale fibre customers. On July 5, the company joined British port operator Associated British Ports to plot a new technology that would improve cargo operations at the ports of the UK.
On July 15, the company stated that it would stop offering 3G services from 2023 on its EE, BT Mobile, and Plusnet networks. Instead, it will focus on improving its 5G capacity. According to the telecommunications giant, 3G usage represents not even % of the total data traffic over its EE internet service provider and mobile network operator. EE aims to provide 5G services all over the UK by 2028.
On July 21, the company invested millions of pounds in Silicon Valley cyber risk management group Safe Security. The company now obtains exclusive rights to use and sell the security Assessment Framework of Safe Security for enterprises platform to the public and private sectors in the United Kingdom. BT Group will also integrate the platform into its universal portfolio.
Should You Buy BT.A Shares?
From an investor’s point of view, you need to consider the risk-reward ratio before picking a share. The company has several plans for the future but the shares are not doing well at the moment. The technical indicators are also not giving a buy signal. Moving Averages are pointing towards selling, while oscillators are either being neutral or pointing towards a sell signal. So, it looks like this is not a good time to purchase BT.A shares.
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