BT Group shares rose over 3% following a recent PS200m deal reached with Northern Ireland Electricity Networks. The price jumped from 198p to 206p. This is a slight increase over the lows of this week. The cup-and handle pattern is bullish, and indicates a recovery this year.
BT Group signs major agreement with NIE
BT shares rose Tuesday following the announcement of a surprising deal with NIE, a leading utility in Northern Ireland.
It will provide products worth 200 million dollars, such as network infrastructure solutions and cybersecurity. It will also be in charge of ensuring that services and support are provided across the entire business. According to the CEO of the company:
Our experience supporting critical services, and our presence for many years in Northern Ireland puts us in an ideal position to offer the trusted, secure connectivity, and the specialist expertise needed to strengthen the network in the coming years.
The BT Group continues its efforts to turn around the business
BT’s share price is up over 20% since its low point in November of last year. This has been aided by ongoing efforts to turn around the company. The company is facing a number of major problems, such as the loss in broadband subscribers.
According to the most recent figures, the revenue of the company dropped from PS5.13billion in the previous quarter down to PS4.97billion in the third.
The international division was primarily responsible for the slowdown, as its revenue fell by 14% from PS522 millions to PS522million. In order to concentrate on local business, the company is reducing its overseas presence. It sold 22nd Century Technologies its US operations last year.
BT Group’s Business segment has also experienced a slowdown, as its revenues dropped by 6%. They now total PS1.92billion. The business segment of BT Group has also been under increasing pressure due to the growing competition and the struggling voice business.
BT Group’s consumer division made PS2.468billion, down 1% from a similar period a previous year. The company’s profits also declined, as the EBITDA for consumer, business and international fell by 11% and 7% respectively.
This is a lower estimate than previous estimates. The company lost over 210k customers in broadband, but now anticipates losing 850k for the entire year. The company’s Openreach division, which has 21 million customers, offset this slowdown.
According to the most recent document, its revenue for this year is expected at PS19.6 Billion. This represents a 3.4% decrease YoY. The EBITDA for the year is estimated to be PS8’2 Billion, a flat figure from last year.
Technical analysis of the BT Group Share Price
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Daily chart showing BT Group’s stock has recovered in recent months. It went from a 171p low in November of last year, to its current 206p.
It is clear from a closer inspection that the pattern has been formed as a cup and handle, which in technical analysis is known to be a bullish continuation signal. The cup has been completed and the handle is next.
Stock remains above 100-day Exponential Movement Average (EMA). The stock has formed a harami, which is a candle pattern that often precedes a rebound. Harami, or a double-candle formation that occurs when a large bearish candle follows a smaller one in a bullish direction.
The next important target will be 216p. This is the top of the cup. If the price moves above this level, it could lead to further gains and possibly even to 250p as the next big target. The rebound is likely to happen in May, after the company’s full-year results.
The post BT Share Price Cup & Handle Pattern Forms: Will it Jump to 250? This post may change as new information unfolds
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