Business & Investment

BT’s share price plummeted 13% in October. Is it time to buy?

Happy Halloween!Alas, it was October, which was pretty thrilling for shareholders. BT group (LSE: BT.A), The stock plummeted this month. Certainly, the stock price of BT is FTSE 100 Index after September 30th. So what went wrong? And will this popular stock bounce back in November?

BT stock price fall and fall

Almost five years ago, on January 13, 2017, BT’s share price closed at 391.75p. Alas, stock prices have never been so high since then. The closing levels at the end of the year after that are as follows. 2017: 271.7p | 2018: 238.1p | 2019: 192.44p | 2020: 132.25p

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As you can see, stock prices have plummeted over the last five years. Indeed, at the bottom of that 2020-21, inventories collapsed to a daytime low of 94.68p. The last time I remembered that BT was less than £ 1 was during the global financial crisis of 2007-2009. In addition, the stock has been a loser for months since it peaked in the middle of the year.

At its peak in 2021, BT stocks reached a daytime high of 206.7p on June 23. Friday’s share closed at 138.93p and the group’s valuation was £ 13.8 billion. The FTSE 100 rose 2.1%, while it fell 13.1% this month. Also, the stock price plummeted 20% in three months and lost 15.8% of its value in six months.

BT’s share price rose 36.6% in a year, while the FTSE 100 rose 28%. However, it has decreased by 61.6% since October 2016, making it a long-term loser. During the same period, the FTSE 100 made a profit of 8.1%. Therefore, BT was a stock dog for half a year. Wow.

Would you like to buy BT after recent weaknesses?

On June 17, the stock closed at 205.6p. Today I can buy BT stock almost 67p cheaper — this is a 32.4% discount. As a veteran value investor, I’m always looking for stocks that have been hit by solid companies. That’s right Back on May 13th of this year, Said to buy BT stock for 160p. Did you change your mind because the stock price fell by more than 21p, or did you keep your original view?

Growing up as a working-class youth from the northeast, I’ve always loved bargains. And at this newly discounted price, I think BT fits my bill as a “fallen angel” with growth potential. Currently, BT stocks are traded with a price-earnings ratio of 9.5 and a rate of return of 10.5%. In addition, BT has reinstated this year’s cash dividend after canceling in May 2020 (stopped for the first time in 36 years). An annual dividend of 7.7p is expected from 2021 to 2010, which is equivalent to an annual dividend yield of 5.5%. This is above the FTSE 100’s 2021 expected dividend yield of 4%.

I don’t own this stock today, but I will buy it at the current BT stock price. However, BT has been struggling for years and is probably facing for a few more years. However, looking to the future, BT’s huge pension contributions are expected to decline and have been successful in the latest wholesale fixed-line market reviews. Nevertheless, I expect the price to continue to fluctuate from this stock from 2021 to 22.Meanwhile, I’m waiting for BT Latest quarterly financial results November 4th.

Cliff Darcy There are no positions in any of the listed shares. The Motley Fool UK does not have a position in any of the listed shares. The views expressed about the companies mentioned in this article are those of the author and may differ from the official recommendations made by subscription services such as Share Advisor, Hidden Winners, and Pro. Here at The Motley Fool, by exploring different insights, Better investors than us.

BT’s share price plummeted 13% in October. Is it time to buy? BT’s share price plummeted 13% in October. Is it time to buy?

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