Saba Capital Management, L.P. (Trades, Portfolio), a New York-based investment firm, has recently added to its position in Blackrock CA Muni Income Tr (BFZ, Financial). The transaction took place on November 6, 2023, with the firm acquiring an additional 43,571 shares at a price of $10.37 per share. This move has increased Saba Capital's total holdings in BFZ to 4,785,065 shares, representing 1.29% of the firm's portfolio and 15.81% of BFZ's total shares. The transaction had a minor impact of 0.01% on the firm's portfolio.
About Saba Capital Management, L.P. (Trades, Portfolio)
Saba Capital Management, L.P. (Trades, Portfolio) is an investment firm located at 405 Lexington Avenue, New York. The firm manages a portfolio of 624 stocks, with a total equity of $3.84 billion. Its 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.
Overview of Blackrock CA Muni Income Tr
Blackrock CA Muni Income Tr (BFZ, Financial) is a closed-end management investment company based in the United States. 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. BFZ has a market capitalization of $314.246 million and operates in a single segment. The company went public on July 27, 2001.
Performance and Valuation of BFZ
As of November 7, 2023, BFZ's stock price stands at $10.38, with a PE ratio of 192.22. According to GuruFocus's valuation, the stock is significantly undervalued, with a GF Value of $15.06. The price to GF Value ratio is 0.69, indicating a potential upside. However, the stock has seen a year-to-date decline of 4.77%, with a gain of 0.1% since the transaction.
Future Performance Potential and Financial Health
BFZ's future performance potential, as indicated by its GF Score, is 61 out of 100. The company's financial strength is rated 5 out of 10, while its profitability rank is 3 out of 10. The company's growth rank is not applicable due to insufficient data. BFZ's GF Value Rank and Momentum Rank are 9 out of 10 and 5 out of 10, respectively. The company's Piotroski F-Score is 8, indicating a healthy financial situation, but its Altman Z-Score is not available.
Position in the Industry and Momentum
BFZ operates in the Asset Management industry. Its ROE and ROA ranks are both 968, indicating a relatively low return on equity and assets. The company's revenue growth over the past three years is -67.30%, ranking it 855 in its industry. The company's predictability rank is not available. BFZ's RSI 5 Day, RSI 9 Day, and RSI 14 Day are 81.06, 67.30, and 57.08, respectively, indicating a strong momentum in the short term.
Transaction Analysis
The recent transaction by Saba Capital Management, L.P. (Trades, Portfolio) indicates a strong belief in the potential of BFZ. Despite the stock's year-to-date decline, the firm's increased stake suggests confidence in the stock's future performance. This move could potentially influence other investors to consider BFZ as a viable investment option. However, investors should conduct their own research and consider the stock's financial health and industry position before making investment decisions.
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.
