On August 24, 2023, Saba Capital Management, L.P., a renowned investment firm, added 1,510,057 shares of Blackrock Muniyield Pennsylvania Quality Fund (MPA, Financial) to its portfolio. This article provides an in-depth analysis of this transaction, the profiles of the guru and the traded company, and the potential impact on the guru's portfolio.
Details of the Transaction
The transaction took place on August 24, 2023, with Saba Capital Management, L.P. adding 8,177 shares of MPA to its holdings. The shares were acquired at a price of $11 each. Following this transaction, the firm now holds a total of 1,510,057 shares of MPA, representing 0.43% of its portfolio. The firm's holdings in MPA now stand at 11.48%.
Profile of Saba Capital Management, L.P.
Saba Capital Management, L.P., located at 405 Lexington Avenue, New York, NY 10174, is a prominent investment firm. The firm's portfolio consists 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.
Information about Blackrock Muniyield Pennsylvania Quality Fund
Blackrock Muniyield Pennsylvania Quality Fund (MPA, Financial) is a U.S.-based closed-end fund with an investment objective to provide 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 $144.347 million. The current price of the stock is $10.98. According to GuruFocus, the stock is significantly undervalued with a GF Value of $35.38 and a Price to GF Value ratio of 0.31. The stock has experienced a -0.18% change in price since the transaction, a -26.8% change since its IPO, and a -1.44% change year-to-date.
Analysis of Blackrock Muniyield Pennsylvania Quality Fund
MPA has a GF Score of 55/100, indicating poor future performance potential. The fund's Financial Strength is ranked 5/10, while its Profitability Rank is 2/10. The fund's Growth Rank is 0/10, indicating no growth. The fund's Piotroski F-Score is 4, suggesting average financial health. The fund's Altman Z score is 0.00, indicating it is not in distress. The fund's Cash to Debt ratio is also 0.00, indicating it has no debt.
Performance of Blackrock Muniyield Pennsylvania Quality Fund
MPA's Gross Margin Growth, Operating Margin Growth, 3-year Revenue Growth, EBITDA Growth, and Earning Growth over the past 3 years are all 0.00, indicating no growth. The fund's Predictability Rank is not available. The fund's Momentum Index for 6 - 1 Month is 4.19, while for 12 - 1 Month it is -11.78. The fund's RSI 14 Day Rank is 179, and its Momentum Index 6 - 1 Month Rank is 443.
In conclusion, Saba Capital Management, L.P.'s recent acquisition of MPA shares represents a significant addition to its portfolio. Despite MPA's poor growth and profitability ranks, the fund's significantly undervalued status may present a potential opportunity for the firm. However, the fund's poor future performance potential, as indicated by its GF Score, may pose a risk. As always, investors are advised to conduct their own thorough research before making investment decisions.