On September 27, 2023, Saba Capital Management, L.P. (Trades, Portfolio) added 208,140 shares of Blackrock CA Muni Income Tr (BFZ, Financial) to its portfolio, bringing its total holdings to 4,513,628 shares. The transaction was executed at a price of $10.39 per share, representing a 4.83% change in the firm's holdings. This acquisition has a 0.06% impact on the firm's portfolio and increases its position in BFZ to 14.81%.
About Saba Capital Management, L.P. (Trades, Portfolio)
Saba Capital Management, L.P. (Trades, Portfolio), located at 405 Lexington Avenue, New York, NY 10174, is a firm that manages a portfolio of 624 stocks, with a total equity of $3.84 billion. The firm's top holdings include Templeton Global Income Fund(GIM, Financial), BlackRock Capital Allocation Trust(BCAT, Financial), BlackRock Health Sciences Trust II(BMEZ, Financial), BlackRock Innovation & Growth Tr(BIGZ, Financial), and BlackRock ESG Capital Allocation Trust(ECAT, Financial). The firm primarily focuses on the Financial Services and Technology sectors.
Overview of Blackrock CA Muni Income Tr
Blackrock CA Muni Income Tr (BFZ, Financial) is a United States-based closed-end management investment company. The company, which operates in a single segment, aims to provide current income exempt from regular U.S. federal income tax. It achieves this by investing a majority of its total assets in municipal bonds. The company, which was listed on July 27, 2001, has a market capitalization of $313.86 million.
Performance Analysis of BFZ
As of September 28, 2023, BFZ's stock price stands at $10.3. The stock is significantly undervalued according to the GF-Score, with a GF Value of $15.06 and a Price to GF Value ratio of 0.68. The stock has experienced a -0.87% change since the transaction and a -5.5% change year-to-date. The stock's GF Score is 60/100, indicating a poor future performance potential.
Financial Health of BFZ
BFZ's financial strength is ranked 5/10, while its profitability rank is 2/10. The company's growth rank is 0/10, indicating no significant growth in recent years. However, the stock's GF Value Rank is 9/10, suggesting that it is undervalued. The company's momentum rank is 7/10, indicating some positive momentum. The company's Piotroski F-Score is 4, and its Altman Z score is 0.00, indicating financial instability.
Return on Equity and Assets
BFZ's return on equity (ROE) is -9.92, ranking 1368th, and its return on assets (ROA) is -6.07, ranking 1332nd. These figures indicate that the company's profitability is relatively low.
Growth and Momentum Analysis
BFZ has not shown significant growth in gross margin, operating margin, or three-year revenue, EBITDA, and earning growth. The company's RSI 14 Day is 17.42, ranking 143rd, and its Momentum Index 6 - 1 Month is -0.79, ranking 840th. These figures suggest that the stock's momentum is relatively weak.
Transaction Impact Analysis
The recent acquisition by Saba Capital Management, L.P. (Trades, Portfolio) has increased its stake in BFZ, reflecting the firm's confidence in the stock's potential. Despite the stock's poor performance and financial health, the firm's increased position suggests that it sees value in the stock's undervaluation. This transaction could potentially influence the stock's momentum and the firm's portfolio performance in the future.
