Tempted by BT’s share price? Here are two things you should know

first_img See all posts by Edward Sheldon, CFA 11 May, Citigroup, target price lowered to 110p from 120p I see this activity as a bearish signal. In my view, it’s not a good sign that multiple brokers are downgrading their price targets for BT shares.I’ll also point out that analysts have lowered their earnings forecasts both for this year and next year quite significantly over the last few months. For example, over the last three months, the consensus earnings per share forecast for this year has fallen nearly 15%.Again, I see that as quite bearish. This kind of sentiment towards the share price and near-term earnings could hold the stock back, in my view.Insiders are loading up on BT.A sharesIt’s not all bearish news though. If we look at what company insiders at BT have been doing recently, in terms of buying and selling shares, the case for BT looks more promising.Since mid-May, seven board members at BT Group, including CEO Philip Jansen and chairman Jan Du Plessis, have purchased BT shares. And some of these purchases have been very substantial too.For example, Jansen’s purchase of 1.834m shares on 13 May cost him over £2m. Meanwhile, Du Plessis’ purchase of 500,000 shares on the same day, cost the chairman £530,000. These two purchases increased their personal holdings by 53% and 166% respectively.I see that kind of insider buying activity as quite bullish. The fact that these top-level insiders are willing to spend that kind of money on shares suggests they’re confident about the future and believe the FTSE 100 stock is undervalued.Would I buy BT today?Would I buy BT shares today in light of these developments? Weighing everything up, the answer’s no. The fact that insiders are buying is encouraging. However, I think the company still has a long way to go, in terms of turning things around.All things considered, I think there are much better stocks to buy right now. Tempted by BT’s share price? Here are two things you should know Simply click below to discover how you can take advantage of this. 23 June, Credit Suisse, target price lowered to 190p from 270p Markets around the world are reeling from the coronavirus pandemic…And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times.Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down…You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm.That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away. It’s fair to say the performance of BT (LSE: BT.A) shares has been disappointing recently. This year, BT’s share price is down over 40%. Meanwhile, over the last three years, it’s down over 60%.If you’re tempted to buy BT shares after this drop in the share price, there are a few things you should know. Below, I’m going to share with you two interesting things I’ve discovered about BT while analysing the FTSE 100 stock recently.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…BT share price: brokers are lowering their targetsThe first thing I want to highlight about BT shares is that, since the company issued its full-year results in early May and suspended its dividend (both its final 2019/2020 dividend and all dividends for 2020/2021), a number of brokers have reduced their target for BT’s share price.I’ve listed the recent price target downgrades: I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. 18 May, Jefferies, target price lowered to 220p from 260p Edward Sheldon, CFA | Monday, 6th July, 2020 | More on: BT-A center_img 11 May, Barclays, target price lowered to 120p from 130p Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Edward Sheldon has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Our 6 ‘Best Buys Now’ Shares 27 May, Barclays, target price lowered to 115p from 120p Click here to claim your free copy of this special investing report now! Enter Your Email Address 5 Stocks For Trying To Build Wealth After 50 Image source: Getty Images. last_img

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