BT Share Price Forecast June 2021 – Time to Buy BT Shares?
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Shares of British multinational telecommunications holding company BT Group (LSE: BT.A) has experienced quite a performance lately. The company’s shares have risen by almost 45% since the start of this year. This return to growth for BT is welcome news to many shareholders as share prices have been in a downward spiral since 2016.
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BT Shares – Technical Analysis
From the information, we get from the company’s financial statements; BT Group has a total market capitalization of £19.98 billion and a total debt of £22.837 billion. The company has generated revenue of £21.34 billion with a profit margin of 6.90%.
The technical information of the company’s share provides even more insight. Moving Averages such as Exponential Moving Average (20) (189.7), Simple Moving Average (200) (137.0) and Volume Weighted Moving Average (20) (185.7) all point towards “buy”. On the flip side, oscillators such as Ultimate Oscillator (7, 14, 28) (57.7), Bull Bear Power (19.3) and Stochastic RSI Fast (3, 3, 14, 14) (51.4), all point towards neutral. BT. A shares closed on June 22nd at £202.6 with an uptrend of +0.50%.
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Recent Developments
According to recently released information from the company, BT Group is now adding almost 40,000 homes to its fibre network on a weekly basis. The company’s customer base has expanded to 3.2 million thanks to the addition of 5G infrastructure to 160 UK-based locations. These developments prompted French telecoms billionaire Patrick Drahi to acquire 12% of BT Group’s outstanding shares. This may also be the reason behind the shares’ appreciation.
Currently, BT Group owes around £22.8 billion in loans which is a large increase compared to last year’s £25.9 billion. The company will raise more funds by selling off non-core assets like its sports division. But there are chances that they will fail to find a buyer. In this case, the company will have to rely on debt financing to reach its 2026 goal. The company’s ambitious plan includes equipping up to 25 million homes with internet fibre connectivity by the year 2026.
Should You Buy BT Shares?
The initial downward spiral of BT Group share prices was largely due to a complacent managerial staff after the company established somewhat of a monopoly. However, there is a definite change in managerial mentality in the company, which is also helped by a new reinvestment plan. Its performance over the last year has certainly changed the views of many investors. The recent progress made in 5G implementation and fibre networks is expected to be a start of an impressive turnaround. Investors should be cautiously optimistic about the company’s share price for the remaining year, but it’s still worth keeping on their watch list. But it’s worth knowing that the company’s performance has beaten predictions by Wall Street throughout the current pandemic.
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