How did the Telstra (ASX:TLS) share price fare in May?

The performance of Telstra in May, may have been attributed more to brokers than any offical announcement.
The post How did the Telstra (ASX:TLS) share price fare in May? appeared first on The Motley Fool Australia. –

Moons, Junes and Ferris wheels… Winter has finally come to the ASX, as the Starks always warned us it would. At the start of a new season, it’s always a good time to look back and reflect on the month that was. Today, let’s check out the Telstra Corporation Ltd (ASX: TLS) share price and see how the ASX’s largest telco fared in the month of May.

So Telstra shares started May at a price of $3.39 each. Yesterday, the final day of the month, saw Telstra close at $3.52 a share. That puts the telco at a gain of 3.83% for the month of May. Not a bad result in the scheme of things. Especially considering Telstra outperformed the S&P/ASX 200 Index (ASX: XJO) rather handily. The ASX 200 managed a still-robust 1.9% gain for May, which incidentally resulted in the flagship ASX index making not one, but two new all-time highs over the month. Even so, this means that Telstra almost doubled the gains of the broader market.

It’s worth noting though that Telstra shares have not had a great start to June today though. At the time of writing, the Telstra share price has given up 0.99% this morning and is now going for $3.48.

But we’re here to talk about May. So why did Telstra shares have such a good month?

Telstra share price gets a May boost

Well, it’s not because there was any positive news, or any news at all, out of the ASX telco last month. It was a quiet May for Telstra on that front. In fact, the last piece of official news out of Telstra came back on 23 April. That was when Telstra announced that it had purchased 1,000 MHz of 26 GHz spectrum rights for $277 million. This is arguably good news for Telstra’s 5G ambitions, but not really enough to move the company’s share price around over May, one would think.

Instead, we can probably put the month’s positive moves down to some love the telco received from brokers over the month. According to CommSec, investment bank Goldman Sachs reiterated its ‘buy’ rating and $4 per share 12-month share price target for Telstra on 27 May. Goldman reckons the telco’s restructuring plans will unlock value in Telstra shares going forward. That implies a potential pricing upside of almost 15%.

It’s not just Goldman that’s bullish on Telstra either. As my Fool colleague James Mickleboro covered yesterday, broker Morgan Stanley has also given Telstra shares a $4 pricing target.

At the current share price, Telstra has a market capitalisation of $41.45 billion, a price-to-earnings (P/E) ratio of 23.4 and a trailing dividend yield of 4.58%.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of May 24th 2021

More reading

High-flying Goodman (ASX:GMG) share price not expensive after all: UBS
ASX 200 down 0.5%: A2 Milk rises, Woolworths completes Quantium transaction

Expected spike in Aussie dollar to >US80 cents spells trouble for these ASX shares

These were the best performing ASX 200 shares in May

These were the worst performing ASX 200 shares in May

The post How did the Telstra (ASX:TLS) share price fare in May? appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!