BT Group share price is in a strong bull run, moving to its highest point since 2017. It has risen in the last seven consecutive months, its longest winning streak since it went public over two decades ago. It has jumped by over 180% from its pandemic lows.
Why BT Group share price is soaring
BT share price has jumped by over 52% this year, helped by its strong turnaround under Allison Kirkby and its improving business trajectory as shown in the last financial results.
These results revealed that its business is turning itself around. Its adjusted revenue came in at £4.87 billion, down approximately 3% from the same period last year.
BT Group’s consumer business revenue dropped by 3% to £2.3 billion, while its struggling business segment dropped by 6% to £1.8 billion.
OpenReach, its fibre business, was a top bright spot for the company as its revenue rose by 1% to £1.56 billion during the quarter.
While the company’s revenue declined during the quarter, the numbers were better than expected. It also reported some strong metrics, including a surge in OpenReach FTTP additions, which rose by 46% to 566k.
BT Group is benefiting from the ongoing turnaround strategy that includes cost optimizations, streamlining its international markets to focus on the United Kingdom, modernizing its business, and boosting financial efficiency.
On costs, the company is in the process of laying off over 55,000, a move intended to make it a leaner growth-oriented business.
The company is working to streamline its business segment that has continued being a thorn in the flesh. It is in talks with some entities like AT&T to sell it or partner. Kirkby is also focusing on the UK and possibly plans to fully exit the international markets.
BT Group is also working on improving efficiency and modernizing its business by leveraging artificial intelligence and cloud computing. Just this week, the company started a partnership with Amazon’s AWS that will see it use its tools across its business.
BT Group share price has soared as investors anticipate more profitability now that its OpenReach capital expenditure has likely peaked. As such, investors probably anticipate more dividends or even a restart of share buybacks.
BT Group is often seen as a good dividend company by income investors. It has a dividend yield of about 3.85%, higher than most FTSE 100 companies.
BT share price technical analysis
The weekly chart shows that the BT Group stock price has been in a strong uptrend in the past few years, moving from a low of 94.18 in 2024 to the current 215p.
This surge happened after the stock formed a double-bottom pattern at 94.18p and a neckline at 140p. A double-bottom is a common bullish reversal pattern in technical analysis.
The stock has remained above moving averages during the ongoing bull run. While this is a bullish factor for the stock, other technical indicators are flashing warning signs.
The Relative Strength Index has moved from the overbought point at 81 to 73, while the Stochastic Oscillator is moving sideways above the overbought level.
Therefore, the stock will likely pull back a bit, possibly to retest the support at 165p and then resume the bullish outlook.
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