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.
