The A2 Milk Company Ltd (ASX: A2M) share price is trading higher on Tuesday following a change in substantial shareholding from UBS.
At the time of writing, shares in the diary and infant formula company are up 2.34% to $6.775.
UBS raises its stake
A2 Milk released a change in substantial shareholding update this morning, revealing that UBS has increased its stake from 6.35% to 7.40%.
The A2 Milk share price has shown some signs of life in the past week, bolstered by a positive update coming out of rival Bubs Australia Ltd (ASX: BUB) on Wednesday, 13 October.
Bubs announced a resurgence in earnings with infant formula revenues up 124% in 1Q22 compared to the same quarter last year and up 64% over the prior quarter.
Similarly, its adult goat milk power was up 100% year-on-year and up 61% quarter-on-quarter.
Another encouraging figure was its strong rebound in China-facing business with revenue up 156% on the prior year and up 98% quarter-on-quarter.
Overall international gross revenue increased 489% compared to the prior corresponding period (pcp) and up 35% on 4Q20.
The successful turnaround for Bubs helped drive a sharp 13.45% re-rate for the A2 Milk share price on the day of the announcement.
The 13.45% jump to $6.58 was also on the back of significant volume, with 15.03 million shares trading hands compared to a 10-day average volume of 5.97 million.
The A2 Milk share price was met with some degree of resistance the next day, surging as high as 9.88% to a 3-month high of $7.23 before closing the day 4.26% higher at $6.86.
The intraday pullback was again on high volume, with 19.24 million shares traded. The mixed performance perhaps signals a strong morning push before profit taking faded the gains.
A2 Milk share price snapshot
The A2 Milk share price is down 41% year-to-date following numerous guidance downgrades.
The relentless selling that took place between August last year and late-May has somewhat subsided.
A2 Milk shares have remain relatively range-bound since late-May, holding above the $5 level but struggling to break above $7.
The post A2 Milk (ASX:A2M) share price ticks higher as UBS increases holding appeared first on The Motley Fool Australia.
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Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. 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 recommended A2 Milk and BUBS AUST FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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