On September 12, 2023, Saba Capital Management, L.P., a 10% owner of Blackrock Muniyield Pennsylvania Quality Fund (MPA, Financial), purchased 24,973 shares of the company. This move is noteworthy as insider buying can often be a positive indicator for the company's future performance.
Saba Capital Management, L.P. is an investment firm that specializes in credit strategies, including credit relative value, capital structure arbitrage, and directional credit opportunities. The firm is known for its active management style and its focus on capital preservation. Over the past year, the insider has purchased a total of 215,732 shares and sold 0 shares.
Blackrock Muniyield Pennsylvania Quality Fund is a closed-end management investment company. The Fund's investment objective is to provide shareholders with as high a level of current income exempt from federal income taxes as is consistent with its investment policies and prudent investment management. The Fund seeks to achieve its investment objective by investing at least 80% of its assets in municipal obligations exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax).
The insider transaction history for Blackrock Muniyield Pennsylvania Quality Fund shows a positive trend. Over the past year, there have been 14 insider buys and 0 insider sells. This suggests that insiders are confident about the company's future and see the stock as a good investment.
On the day of the insider's recent buy, shares of Blackrock Muniyield Pennsylvania Quality Fund were trading for $10.95 apiece, giving the stock a market cap of $143.69 million. This is significantly lower than the GuruFocus Value of $35.38, suggesting that the stock is significantly undervalued.
The GF Value is an intrinsic value estimate developed by GuruFocus. It is calculated based on historical multiples that the stock has traded at, a GuruFocus adjustment factor based on the company’s past returns and growth, and future estimates of business performance from Morningstar analysts. With a price-to-GF-Value ratio of 0.31, the stock appears to be significantly undervalued.
In conclusion, the recent insider buying by Saba Capital Management, L.P. could be a positive sign for Blackrock Muniyield Pennsylvania Quality Fund. The stock appears to be significantly undervalued, and the insider's purchase suggests confidence in the company's future. Investors should keep an eye on this stock and consider the insider's actions when making investment decisions.