BT Group (LON: BT.A) share price rose by more than 2% on Tuesday as investors reacted to the latest news on Patrick Drahi’s stake. The shares rose to an intraday high of 160.60p, which was higher than this month’s low of 153.95p.
Drahi stake in BT
BT Group is a leading British telecommunication company that provides its services to millions of people in the country. The company owns some of the best-known brands in the country like BT, EE, Plusnet, and Openreach. Its customer-facing lines of businesses are consumer, enterprise, global, and Openreach.
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BT Group has been under regulatory scrutiny in the past few months due to its biggest shareholder. Patrick Drahi, a French billionaire who owns Altice, started accumulating the company’s shares in 2021. He then became the biggest individual shareholder with a 18% stake.
The country’s regulator has been scrutinizing his stake in the business from a national security standpoint. In a statement, the company said that the government would not take action on his shareholding. Precisely, it will not ask him to reduce the size of his stake in the company. At the same time, it warned that future transactions will be subject to a separate assessment.
The announcement gave the embattled shares some reprieve since they have been in a downward trend. It has dropped by over 22% from its highest level this year. It is also sitting close to its lowest level in November 2021.
Still, the company is doing modestly well. Its sales rose for the first time since 2017 as demand for its fiber optic solutions jumped. Its growth was also because of the rising tariff prices. The company’s revenue in Q1 rose by 1% to 5.13 billion pounds while its adjusted EBITDA rose to 1.9 billion pounds.
BT share price forecast
The daily chart shows that the BT Group share price formed a triple-top pattern at 196.70p. In price action analysis, this pattern is usually a bearish sign. It managed to move below the important support level at 171.95p, which was the lowest level on May 11.
The stock has dropped below the 25-day and 50-day moving averages. At the same time, the Relative Strength Index (RSI) has moved from the overbought level. Therefore, the shares will likely continue falling as sellers target the next key support at 140p.
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Source: https://invezz.com/news/2022/08/23/bt-share-price-triple-top-pattern-points-to-more-pain-ahead/