In a recent transaction, Saba Capital Management, L.P., a renowned investment firm, has acquired a significant stake in PIMCO Energy & Tactical Credit Opportunities (NRGX, Financial). This article provides an in-depth analysis of the transaction, the guru's profile, and the traded stock's financial health and performance.
Profile: Saba Capital Management, L.P.
Saba Capital Management, L.P., based in New York, is a leading investment firm with a diverse portfolio. The firm's investment philosophy is centered on identifying undervalued assets and leveraging market inefficiencies. As of the transaction date, the firm held 762 stocks, with a total equity of $5.24 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 top sectors are Financial Services and Technology.
Transaction Details
The transaction took place on August 10, 2023, with Saba Capital Management, L.P. adding 13,943 shares of NRGX to its portfolio. The shares were acquired at a price of $16.93 per share, bringing the firm's total holdings in NRGX to 5,842,400 shares. This acquisition represents 1.89% of the guru's portfolio and 13.07% of the total shares of NRGX.
Traded Stock: PIMCO Energy & Tactical Credit Opportunities
PIMCO Energy & Tactical Credit Opportunities (NRGX, Financial) is a non-diversified, limited term closed-end management investment company based in the USA. The company's primary objective is to seek total return, with a secondary objective to provide high current income. The company operates in a single segment and has a market capitalization of $771.196 million. The current stock price is $17.25.
Stock Performance and Valuation
NRGX has a PE percentage of 5.05, indicating that the company is profitable. However, due to insufficient data, the GF Valuation cannot be evaluated. The stock has gained 1.89% since the transaction and has a year-to-date price change ratio of 18.15%. Despite a decline of 13.75% since its IPO, the stock's GF Score of 37/100 suggests potential for future performance.
Stock's Financial Health and Profitability
NRGX's financial strength is ranked 3/10, and its profitability rank is 2/10. The company's Piotroski F-Score is 2, indicating weak financial health. The company's Altman Z score and cash to debt ratio are not available due to insufficient data. However, the company has a strong return on equity (ROE) of 20.87 and a return on assets (ROA) of 15.03.
Stock's Momentum and Predictability
NRGX's momentum rank is 10/10, indicating strong momentum. The stock's RSI 5 day, RSI 9 day, and RSI 14 day are 87.83, 80.45, and 75.82 respectively, suggesting that the stock is currently overbought. The stock's momentum index for 6 - 1 month and 12 - 1 month are 0.25 and 4.25 respectively. However, the stock's predictability rank is not available due to insufficient data.
Conclusion
In conclusion, Saba Capital Management, L.P.'s acquisition of NRGX shares represents a significant addition to its portfolio. Despite NRGX's weak financial health and profitability ranks, the stock's strong momentum and ROE suggest potential for future performance. This transaction could provide value investors with insights into the investment strategies of leading firms and the potential of NRGX as an investment.
