The Telstra Corporation Ltd (ASX: TLS) share price zipped higher over the past month following positive investor sentiment.
In April, the telco provider’s shares have gained around 2%. By compassion, the S&P/ASX 200 Index (ASX: XJO) fell almost 1% over the same period.
It’s worth noting that Telstra shares reached a 2-month high of $4.06 on 21 April before treading lower.
At Tuesday’s market close, the company’s shares finished 0.25% lower to $3.98.
Below, we take a closer look at what fuelled the Telstra share price.
What’s drove Telstra shares higher last month?
While the company’s kept relatively quiet on the news front during April, investors continued to buy up Telstra shares.
The positive outlook on the company is stemming from the successful implementation of its transformational T22 strategy. Management sees this as a way of simplifying and digitising the business.
However, the upcoming T25 strategy which builds on the T22 strategy is posed for driving growth. Its aim is to further support dividends through a number of cost-cutting and value-adding initiatives.
In addition, the appointment of new CEO, Ms Vicki Brady appeared to excite investors.
Ms Brady is scheduled to take over the helm from outgoing CEO Andy Penn on 1 September.
They both have been working together to ensure a smooth handover.
Lastly, Telstra has been busy conducting its planned $1.35 billion buyback program. Currently, management has spent $1.15 billion so far following the partial sales of the Towers transaction.
It is expected that the sale will be completed by the end of the financial year.
Telstra share price summary
In 2022, the Telstra share price has lost around 5%, despite reaching pre-pandemic levels.
If the company’s share price can push above $4.31 this year, it will be at a multi-year high from 2017.
Telstra commands a market capitalisation of around $46.42 billion, making it the 11th largest company on the ASX.
The post Why did the Telstra share price beat the ASX 200 in April? appeared first on The Motley Fool Australia.
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Motley Fool contributor Aaron Teboneras has positions in 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 has positions in 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 Scott Phillips.
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