On November 2, 2023, Saba Capital Management, L.P. (Trades, Portfolio), a New York-based investment firm, increased its holdings in Blackrock CA Muni Income Tr (BFZ, Financial) by adding 45,009 shares. The transaction, executed at a trade price of $10.19 per share, resulted in a 0.96% change in the firm's portfolio, with a trade impact of 0.01%. The firm now holds a total of 4,741,494 shares in BFZ, representing 1.26% of its portfolio and 15.66% of the company's total shares.
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 diverse 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 investments are primarily concentrated in the Financial Services and Technology sectors.
Details of the Trade
The recent acquisition of BFZ shares by Saba Capital Management, L.P. (Trades, Portfolio) was executed at a trade price of $10.19 per share. The firm now holds a total of 4,741,494 shares in BFZ, representing 1.26% of its portfolio. The firm's holdings in BFZ account for 15.66% of the company's total shares.
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 the stock market 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 $314.851 million. As of November 4, 2023, the company's stock price stands at $10.4, with a PE ratio of 192.59.
GuruFocus Valuation of the Stock
According to GuruFocus valuation, BFZ is significantly undervalued, with a GF Score of 61/100, indicating poor future performance potential. The GF Value of the stock is $15.06, and the price to GF Value ratio is 0.69. Since the transaction, the stock has gained 2.06%, but it has declined by 4.59% year-to-date.
Examination of the Stock's Financial Health
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 5/10. The company has a Piotroski F-Score of 8 and an Altman Z Score of 0.00, indicating no bankruptcy risk. The company's cash to debt ratio is not applicable.
Analysis of the Stock's Performance
BFZ 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. The company's gross margin growth and operating margin growth are both 0.00, and its 3-year revenue growth is -67.30%. The company's EBITDA growth over the past three years is 0.00, and its earnings growth over the same period is -58.00.
Evaluation of the Stock's Momentum
The stock's RSI 5 Day is 85.14, its RSI 9 Day is 69.34, and its RSI 14 Day is 58.25. The stock's momentum index 6 - 1 month is -15.21, and its momentum index 12 - 1 month is -0.69.
In conclusion, Saba Capital Management, L.P. (Trades, Portfolio)'s recent acquisition of BFZ shares represents a strategic move to capitalize on the stock's undervalued status. Despite the stock's poor future performance potential, the firm's increased stake in BFZ could yield significant returns if the stock's valuation improves.
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.
