On October 17, 2023, Saba Capital Management, L.P. (Trades, Portfolio) added 57,172 shares of Blackrock CA Muni Income Tr (BFZ, Financial) to its portfolio. The transaction, executed at a trade price of $10.36 per share, increased the firm's total holdings in BFZ to 4,656,620 shares. This addition represents a trade change of 1.24% and has a minor impact of 0.02% on the firm's portfolio. The position of BFZ in the firm's portfolio now stands at 1.26%, making up 15.38% of the guru's holdings in the traded stock.
About Saba Capital Management, L.P. (Trades, Portfolio)
Saba Capital Management, L.P. (Trades, Portfolio), a New York-based investment firm, 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's investment philosophy is primarily focused on the Financial Services and Technology sectors. 
Details of the Trade
The trade was executed at a price of $10.36 per share, bringing the total shares held by Saba Capital Management, L.P. (Trades, Portfolio) in BFZ to 4,656,620. This represents 1.26% of the firm's portfolio and 15.38% of its holdings in the traded stock.
Overview of Blackrock CA Muni Income Tr
Blackrock CA Muni Income Tr (BFZ, Financial) is a U.S.-based closed-end management investment company that was listed on July 27, 2001. The company's primary objective is to provide current income exempt from regular U.S. federal income tax, achieved by investing a majority of its total assets in municipal bonds. The company operates in a single segment and has a market capitalization of $309.402 million. The current stock price is $10.22, with a PE percentage of 189.26. 
GuruFocus Valuation of the Stock
According to GuruFocus valuation, BFZ is significantly undervalued with a GF Value of $15.06. The price to GF Value ratio stands at 0.68. However, the stock has seen a decline of 1.35% since the transaction and a year-to-date decline of 6.24%. The GF Score of the stock is 62/100, indicating a poor future performance potential.
Stock's Financial Health and Performance
BFZ has a balance sheet rank of 5/10, a profitability rank of 3/10, and a growth rank of 0/10. The stock's GF Value rank is 9/10, and its momentum rank is 7/10. The stock has a Piotroski F-Score of 8 and an Altman Z Score of 0.00.
Stock's Debt and Industry Position
BFZ has a cash to debt ratio of 9999.00, indicating a strong financial position. The company operates in the Asset Management industry and has a return on equity (ROE) of 0.12 and a return on assets (ROA) of 0.08. Both the ROE and ROA rank at 962.
Stock's Growth and Momentum
Over the past three years, BFZ has seen a revenue decline of 67.30% and an earnings decline of 58.00%. The stock's RSI 5 Day is 35.85, RSI 9 Day is 36.95, and RSI 14 Day is 34.51. The momentum indexes for 6 - 1 month and 12 - 1 month are -6.79 and 5.14, respectively.
In conclusion, the recent transaction by Saba Capital Management, L.P. (Trades, Portfolio) has slightly increased its stake in BFZ. However, given the stock's current valuation and financial health, it remains to be seen how this addition will impact the firm's portfolio in the long run.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
