BT Shares (BT-A) Move To Multi-Year High, Eyeing 200p Threshold

BT Group plc (LON:BT.A) shares are riding a wave of positive momentum, closing at 196.45p, hitting a new high of 197.50p and moving ever closer to the psychologically significant 200p mark.

The upward trajectory is readily apparent when examining the past months' performance. BT shares have steadily climbed from the mid-170s, reflecting sustained confidence in the company's strategic direction, and an 11% gain on the month, and 40% in the past year.

The dividend yield of 4.18%, coupled with an upcoming ex-dividend date of August 7, 2025, adds to the stock's appeal for income-seeking investors. The payout ratio is sustainable, with only 38% of free cash flow being used for dividends, and earnings per share are projected to grow by 41.6% in the next year.

The financial performance of BT Group also paints a promising picture. While revenue for the trailing twelve months (TTM) stands at £20.36 billion, with a 2.11% decline in 2024, net income TTM amounts to £1.05 billion. Notably, net earnings grew by an impressive 23.27% in 2024, reflecting improved profitability and successful cost efficiency measures.

A key catalyst behind this resurgence is CEO Allison Kirkby's strategic vision. In June 2025, Kirkby announced plans to deepen job cuts beyond the previously announced 40,000 by 2030, leveraging the power of artificial intelligence (AI) to streamline operations and reduce costs.

This proactive approach to cost management has resonated positively with investors, who see the potential for increased profitability and shareholder value. Furthermore, Kirkby has hinted at the possibility of spinning off Openreach, BT's infrastructure arm, after the completion of its full-fiber rollout. This strategic move could unlock significant value for shareholders.

Looking ahead, markets are looking to the Q2 2025 financial report, scheduled for release at the end of this month. It would be a brave person to bet against BT having hit 200p in the meantime. Hitting a level is one thing, how the price then reacts could prove key.