Insights

The Telstra (ASX:TLS) share price just hit another new 52-week high

The Telstra share price just hit a new 52-week high…
The post The Telstra (ASX:TLS) share price just hit another new 52-week high appeared first on The Motley Fool Australia. –

The Telstra Corporation Ltd (ASX: TLS) share price is once again on the climb today. Telstra shares are currently trading for $3.84 apiece at the time of writing.

However, this ASX 200 telco was trading even higher after market open this morning, climbing all the way to $3.88 a share – the company’s new 52-week high. In fact, it’s the highest the Telstra share price has climbed since before the outbreak of the coronavirus pandemic early last year.

Telstra, one of the ASX 200’s most prominent blue chip shares, has been on quite the run over the past year or two. Year to date in 2021, Telstra is now up a healthy 28.69% on the current pricing. Over the past 12 months, it’s up 13.13%. But it has still been a poor long-term performer, losing its investors close to 30% over the past 5 years.

Even so, its more recent gains have been hard to ignore. So what’s propelling the telco to these new highs?

Why is the Telstra share price at a new 52-week high?

Well, a number of developments seem to be giving investors reason to dive into Telstra shares. It’s fairly safe to say the sale of half of Telstra’s InfraCo Towers business back in June really lit the rocket under the telco.

Back on 30 June, Telstra announced that a consortium of investors had agreed to purchase a 49% stake in InfraCo Towers for a price of $2.8 billion. This gave this business an earnings multiple of 28x, which was the part that really got chins a’wagging.

If Telstra could command such a robust earnings multiple for this sale, perhaps its remaining assets (such as Telstra’s fixed-line division InfraCo Fixed) are worth more than the market previously estimated? As a case in point, since the announcement of this sale, the Telstra share price has risen almost 7%.

But that’s not all that Telstra has pulled out of its hat in recent months.

The federal government’s recent maneuvers to help Telstra potentially acquire the Pacific telco Digicel Pacific has been piquing investors’ attention. As has Telstra’s recent $350 million acquisition of MedialDirector.

Telstra also got some good news yesterday regarding the regional radio frequency limits. The government sets these limit and Telstra had requested that a 43% limit for telcos be established. The government came back with a 45% limit, which is good news for the company.

All in all, the Telstra share price seems to be responding to a combination of these catalysts and, perhaps as a result, is now exploring the new 52-week highs we are seeing today.

At the current Telstra share price, the telco has a market capitalisation of $45.43 billion, a price-to-earnings (P/E) ratio of 25.77 and a trailing dividend yield of 4.17%. Telstra reports its FY2021 earnings this Thursday.

The post The Telstra (ASX:TLS) share price just hit another new 52-week high appeared first on The Motley Fool Australia.

Should you invest $1,000 in Telstra right now?

Before you consider Telstra, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Telstra wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of May 24th 2021

More reading

3 high conviction ASX 200 shares that could be buys this August

2 ASX dividend shares with 4%+ yields

ASX 200 flat, Suncorp surges, NAB makes Citi acquisition

TPG, Telstra share prices wobble on ACCC allegations and court action

These 10 ASX 200 shares hit new 52-week highs this Monday

Motley Fool contributor Sebastian Bowen owns shares of Telstra Corporation Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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!