The Telstra Corporation Ltd (ASX: TLS) share price has zipped higher in recent times following positive investor sentiment.
In the past 3 months, the telco provider's shares have gained around 2.6%. By compassion, the S&P/ASX 200 Index (ASX: XJO) has fallen 1.8% over the same period.
It's worth noting that Telstra shares reached a new 52-week high of $4.05 last week before treading lower.
Below, we take a closer look at what's been fuelling the Telstra share price.
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What's driving Telstra shares higher?
Without a doubt, there have been a few catalysts that have led the Telstra share price to shoot higher this year.
The company released the notes from its annual general meeting (AGM) last month, highlighting a turning point in its financial trajectory.
Telstra spent the year building financial momentum to target a return to full-year growth in FY22. It has made progress on its transformational T22 strategy to simplify and digitise the business.
The performance of its mobile division has been a standout as Australians continue to work from home.
Management's focus on cutting down costs across the business has had a positive effect on its share price. The company delivered cost reductions of $2.3 billion and is on track to deliver a T22 productivity target of $2.7 billion.
In addition, Telstra's acquisition of Pacific-based telco, Digicel is also expected to provide ample returns with relatively low risk. The telco paid US$270 million while the Australian government put in the majority of funds for the $1.6 billion price tag.
The deal is anticipated to be earnings per share accretive, more than a share buyback. Telstra launched a $1.35 billion share buyback after selling a stake in its InfraCo Towers business.
More recently, the company signed a significant renewal contract with the Australian Department of Defence.
Extended for 5-years and worth over $1 billion, the agreement will see Telstra deliver critical network and telecommunications services. It's the largest ever customer contract signed by Telstra Enterprise and will aid the business in returning to growth.
At the time of writing, the telco's share price is 0.13% higher to $3.935 apiece.
Telstra share price summary
In 2021, the Telstra share price has gained 32%, reaching pre-pandemic levels. If the company's share price can push above $4.05 today, it will be at a multi-year high from 2017.
Telstra commands a market capitalisation of around $46.80 billion, making it the 10th largest company on the ASX.
