How to buy and sell Telstra Shares

Telstra is Australia’s largest telecommunications provider. This is how an investor can buy and sell Telstra shares.

Understanding Telstra: a brief history

Telstra considers itself Australia’s leading telecommunications and communications company, with a commercial lineage that extends all the way back to the 1850s. The company and its antecedence were a fixture in most of the major developments in Australia’s technological and communications history, and remains a major corporate presence in the nation today.

The privately listed company known today by most investors came to life in the early 1990s, as a result of a merger between Australia’s Overseas Telecommunications Commission and Australian Telecommunications Corporation. After several years of operation, the new company was renamed ‘Telstra Corporation.'

In the late 1990s, the Federal Government began the slow process of privatising the telecommunications giant, only completing the process in full in 2011. Telstra is now a fully independent commercial institution; and is seeking to define itself, with the roll out of the NBN, as Australia’s major communication technology firm, with international growth ambitions.

Telstra shares: the basics

Telstra shares are traded on the ASX, and under the stock ticker 'TLS' and it’s also a constituent of the ASX 200. The company is Australia’s largest listed telecommunications company, and has been historically considered one of the country’s ‘blue-chip, large-cap stocks.'

As of June 2019, there was almost 12,000,000,000 shares floated on the market. Finding this exact figure at any point in time can be used by shareholders to calculate the size of their total share in the company.

Telstra’s key personnel: who manages the company?

Title Description
Andrew Penn Chief Executive Officer Responsible for conceiving, implementing and driving Telstra’s overall corporate strategy.
Alexandra Badenoch Transformation and People – Group Executive Leads Telstra’s commercial transformation, with a core focus on the way employees work and engage with the business.
Robyn Denholm Chief Financial Officer and Head of Strategy Specializes in setting Telstra’s strategic direction, and managing the vast financial requirements of the company.
Carmel Mulhern Legal and Corporate Affairs – General Counsel Manages Telstra’s in-house legal team, with the view of supporting the firm’s commercial objectives.
Brendon Riley Telstra InfraCo CEO Responsible for the maintenance and monetizing of Telstra’s expansive portfolio of assets for its wholesale client case.
Vicki Brady Consumer and Small Business – Group Executive Leads the department of Telstra responsible for consumers and small business.
David Burns Group Executive, Global Business Services In charge of simplifying Telstra’s business model, and coordinating its core-services, to improve customer and shareholder outomes.
Michael Ebeid AM Group Executive, Enterprise Head of Telstra’s enterprise size client offering, which includes large business and government customers.
Nikos Katinakis Group Executive, Networks and IT Ensures the role out of Telstra’s new network technologies.
Christian von Reventlow Product and Technology – Group Executive Heads the group within Telstra that creates and delivers the company’s product and solution offering.

How to buy Telstra shares

Investors who are interested in buying Telstra shares can do so through an IG share trading account from as little as $8. Via IG’s share trading platform you pay full price of the shares and you own them outright whilst also receiving any dividends that are paid and benefiting from any gains in the Telstra share price.

  1. Start by opening a share trading account with IG to buy Telstra shares
  2. Access ‘My IG dashboard’ after logging in to your share trading account
  3. Add funds to your account and via the ‘finder’ panel on the classic platform search for ‘Telstra’.
  4. Finally, choose how to buy Telstra shares. There are two options: ‘at quote’ and ‘on exchange’. By selecting ‘at quote’ you get the best price from a range of market makers. ‘On exchange’ on the other hand means that you’ll interact directly with the order book of the corresponding exchange.

Upon successful completion of the aforementioned steps, you will receive a confirmation of your transaction and the shares will appear in your account shortly afterwards. Though the IG platform you will be able to track any price movements and any dividends paid out will automatically reflect into your account upon receiving the payment.

How to sell Telstra shares

There may come a time when you’d want to sell your Commonwealth Bank of Australia shares. You can do so easily and quickly through the IG share trading platform in four easy steps:

  1. Log in to your share trading account and click on ‘Telstra’ in the open positions
  2. Click on ‘Sell’
  3. Select the number of shares to be sold
  4. Confirm the sale

Trading Telstra shares

An individual can benefit from fluctuations in the price of Telstra shares utilising derivatives such as CFDs. When you trade, you can profit from the rising or fallings of the price of the shares as you don’t take ownership of the underlying assets – rather you speculate on the share price. In the event you think the Telstra share price will rise, you buy (go long) and if you believe that the Telstra share price will fall, then you sell (go short). Moreover, because trading includes the use of leverage, a trader can gain greater exposure to changes in the Telstra share price than what they would by purchasing the physical share. This means that greater profits can be achieved with a smaller financial outlay; but, of course, at a much higher risk.

What is Telstra’s strategy?

Telstra is currently undertaking a significant restructure, in order to reposition the business to tackle the changes in digital communications, especially beyond the roll out of the National Broadband Network. This has meant major job cuts, and changes to the corporations operating model. The so called 'Telstra2022' strategy rests on 'four pillars':

  1. The simplification of product offerings, elimination of customer 'pain points' and the creation of 'all digital experiences.'
  2. The establishment of a standalone infrastructure business to drive performance and support the company after the NBN roll out.
  3. The simplification of the business’ structure and ways of working, in order to empower the company’s people, and better serve customers
  4. The implementation of a cost reduction program and portfolio management

Telstra fundamental analysis: how to analyse Telstra

Description Current
Earnings Growth The rate at which Telstra’s earnings are expected to grow. Investors wish to see continued earnings growth. Correlated strongly to the bank’s share price. -29.5% (annualized estimate)
EBITDA An acronym for 'Earnings before interest, tax, depreciation and amortization', it is a tool to measure Telstra’s earnings from its operational efficiency. $4,300 million
NPAT The level of profit left in Telstra after stripping out expenses and tax. It’s a good guide for real, shareholder earnings. $1,200 million
Price-to-Earnings Gauges Telstra’s share price in relation to its earnings. It signifies how much an investor needs to pay to obtain $1 dollar of the bank’s earnings. 14.79
Dividend The distribution of a portion of the Telstra’s earnings to its shareholders, as determined by the bank’s board of directors. Measures on a per share basis. $0.19
Return on Equity (RoE) Measures Telstra’s management’s ability to create profits from the assets it owns. A higher ROE is considered desirable by investors. 24.48

Publication date : 2019-06-27T14:27:00+0100

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