On July 17, 2023, Saba Capital Management, L.P. (Trades, Portfolio), a renowned investment firm, added 1,454,308 shares of Blackrock Muniyield Pennsylvania Quality Fund (MPA, Financial) to its portfolio. This article provides an in-depth analysis of the transaction, the guru's profile, and the traded stock's financial health and performance.
Details of the Transaction
The transaction took place on July 17, 2023, with Saba Capital Management, L.P. (Trades, Portfolio) adding 28,933 shares of MPA to its portfolio. The shares were acquired at a price of $11.6 each, resulting in a 2.03% change in the guru's holdings. Following the transaction, Saba Capital Management, L.P. (Trades, Portfolio) now holds 1,454,308 shares of MPA, accounting for 0.32% of its portfolio and 11.06% of MPA's total shares.
Profile of the Guru: 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 prominent investment firm with a diverse portfolio. 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 equity stands at $5.24 billion, with a strong focus on the Financial Services and Technology sectors.
Overview of the Traded Stock: Blackrock Muniyield Pennsylvania Quality Fund
Blackrock Muniyield Pennsylvania Quality Fund (MPA, Financial) is a U.S.-based closed-end fund with the objective of providing shareholders with current income exempt from U.S. federal and Pennsylvania income taxes. The fund operates in a single segment and has a market capitalization of $153.681 million. The current price of MPA shares is $11.69, with a PE percentage of 0.00. According to GuruFocus valuation, the stock is significantly undervalued, with a GF Value of $35.38 and a Price to GF Value ratio of 0.33.
GuruFocus Valuation and Performance of the Stock
Since the transaction, MPA's price has increased by 0.78%. However, since its IPO, the stock has seen a decrease of 22.07%. The year-to-date price change ratio stands at 4.94%. The GF Score of the stock is 55/100, indicating a poor future performance potential.
Analysis of the Stock's Financial Health
MPA's financial health is reflected in its F Score of 4 and a Z Score of 0.00. The stock's Cash to Debt ratio is also 0.00. The Return on Equity (ROE) and Return on Assets (ROA) stand at -11.33 and -6.94, respectively, with respective ranks of 1189 and 1125.
Stock's Momentum and Predictability
The stock's RSI 5 Day, RSI 9 Day, and RSI 14 Day values are 59.23, 53.88, and 53.60, respectively. The Momentum Index 6 - 1 Month is 1.57, and the Momentum Index 12 - 1 Month is -10.86. The stock's Rank RSI 14 Day and Rank Momentum Index 6 - 1 Month are 788 and 416, respectively.
Transaction Analysis
The acquisition of MPA shares by Saba Capital Management, L.P. (Trades, Portfolio) signifies the guru's confidence in the stock's potential despite its current undervaluation. The transaction has increased the guru's stake in MPA, making it a significant part of its portfolio. This move could influence other investors to consider MPA as a potential investment opportunity.
All data and rankings are accurate as of July 20, 2023, and are based on the provided relative data.
