One of Postmedia Network Inc.’s largest shareholders is trimming its ownership in the newspaper company.
Invesco Ltd., which owns the Trimark group of funds in Canada and is the company’s third-largest shareholder, filed a report Monday indicating it reduced its holdings by 25 per cent (or just over one million shares) since July. With the sale, it has reduced its stake to 9 per cent of outstanding shares from 12 per cent.
Invesco was required to report any change to its holdings because it owned more than 10 per cent of the company’s shares. The company said the decision was made for “investment purposes.”
Postmedia’s shares are lightly traded, but have fallen 71 per cent from a year ago as the company racks up losses and struggles with declining revenues brought on by a weak national advertising market.
It reports its first-quarter earnings on Thursday. Three analysts follow the company’s shares, with two of them recommending investors “hold” and the other advising investors to “sell.” Their average 12-month price target is $1.38 a share – 74 per cent lower than today’s trading price.