Did the BT share price jump 25% in May?

The BT share price jumped 25% in May! Should I snap it up in June? After years of woe, the BT (LSE: BT.A) share price finally put on a show last month. It ended May 25.76% higher than it began the month, which is quite a turnaround. On the FTSE 100, only a resurgent Hargreaves Lansdown did better.

What is BT stock's fair value?

According to the consensus of analysts following the stock, fair value currently sits around 191p. That’s a significant 48% premium from the current share price. While there are so many variables, including the impact of further quarterly announcements, I’d expect BT shares to continue trading at a discount to the share price target.

Is BT stock a guaranteed buy?

BT’s dividend has been volatile in recent years. However, last year saw it increase its payout by 3.9% to 8p per share. But just because the shares look cheap doesn’t mean they’re a guaranteed buy. I have my concerns with the stock. It now stands at £18.9bn, having increased £850m in the last 12 months. For me, that’s a big red flag.