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The BT share price will be in the spotlight in London as the telecommunication giant announced significant board changes The stock ended last week at 175p, which was about 15% below the highest level this year. It slumped by more than 1% when it opened today.
BT is one of the biggest telecommunication companies in the UK. It makes money through its communication, sports broadcasting, and its Openreach broadband solutions.
The BT share price has had a spectacular rally in the past few months. It has managed to rise by more than 86% from its lowest level since last year.
The stock will be in focus on Tuesday after the company announced that its board chairman will soon retire. The new chairman of the board will be Adam Crozier, a serial board member. Adam was once the Chief Executive at ITV and Royal Mail.
He currently chairs the board of Asos, the well-known online clothing retailer. He is also on the board at Whitbread, a hospitality group and Kantar Group. He is also on the board of Sony, the Japanese conglomerate.
The company described Crozier as a turnaround specialist and allayed fears about his schedule. The firm said that he will step down from Asos and Sony before he assumes his role at BT. In a statement, Crozier said:
“It is an honour to join the board of BT and to succeed Jan as Chair. BT is a hugely important company, with a critical role to play in building the digital networks and services to support the UK’s future.”
The BT share price has jumped recently after a French billionaire took a large stake in the company. It has also expressed the interest of exiting its TV business.
The daily chart shows that the BT stock price has struggled substantially in the past few weeks. The stock declined after the company announced the new board chairman, who will start his work in December. The shares are between the 23.6% and 38.2% Fibonacci retracement levels. It has also moved below the 50-day and 100-day moving averages.
Still, the shares are forming the fourth wave of Elliot wave pattern. Therefore, there is a possibility that it will resume the bullish trend and move above its YTD high of 207p. This view will be invalidated if it drops below the 38.2% retracement at 165p.