BT Group (LON: BT.A) share price has done well in the past few weeks even as some notable investors like Blackrock, AKO Capital, and Canada Pension placed a big short against it. It has soared by over 26% from its lowest point this year, making it one of the top companies in the FTSE 100 index.
Billionaires have invested in BT Group
BT Group has become a favourite company among some billionaires because of its strong market share in the UK. Most recently, the company’s new CEO shared her vision for the company. As part of her strategy, she want to cut more jobs in a bid to save over £3 billion annually. She also announced a plan to boost its dividends and share buybacks.
The most recent billionaire to invest in BT is Carlos Slim, the 17th richest person on earth with a net worth of over $92 billion. Entities related to Slim took a 3% stake in the company worth about £400 million.
His investment in BT comes at a time when he has also invested in other European telecom companies like KPN and Telekom Austria. It is unclear whether Slim will increase his stake in the company.
Carlos Slim’s investment in BT Group came a few years after Patrice Drahi invested in the company. Drahi, who owns Altice, owns a large part in BT as part of his diversification. He has been a passive investor in the company and has not publicly made any public comments.
These investments could make BT Group attractive to other institutional and retail investors. For one, there has been rumours of BT becoming a takeover target for years. That would be a big-ticket acquisition since BT has a market cap of over £12 billion and a £3.7 billion pension funding deficit.
BT Group share price analysis
The other good news from BT is that its stock recently formed a golden cross pattern, which happens when the 50-day and 200-day Exponential Moving Averages (EMA) cross each other. In most cases, this is one of the most bullish signs.
The stock has remained slightly below the crucial resistance level at 135.65, its highest point this year and in December last year. Also, the shares have remained at the 38.2% Fibonacci Retracement level.
Therefore, the stock will likely remain in this range this week and then have a bullish breakout in the coming weeks. More upside will be confirmed if the stock jumps above the resistance level at 135.65p.
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