⏳ Final hours! Save up to 60% OFF InvestingProCLAIM SALE

Saba Capital buys and sells Blackrock Trust shares worth over $200k each

Published 15/04/2024, 17:20
BFZ
-

In a recent move by investment firm Saba Capital Management, L.P., transactions involving the purchase and sale of shares in Blackrock (NYSE:BLK) California Municipal Income Trust (NYSE:BFZ) were reported. The firm engaged in both buying and selling of the trust's common stock on the same day, with each type of transaction surpassing the $200,000 mark.

On March 7, 2023, Saba Capital Management purchased 18,568 shares of Blackrock California Municipal Income Trust at a price of $11.17 per share, totaling approximately $207,404. Subsequently, the firm sold an equal number of shares at a slightly higher price of $11.21 each, amounting to roughly $208,147 in total. These transactions resulted in a slight increase in the share price from the buying to the selling transaction.

The back-to-back transactions led to a change in Saba Capital's holdings in the trust, with shares owned following the sale totaling 3,148,234. It is notable that the transactions were carried out indirectly by the firm. The filings did not specify the reason for these transactions, which is not unusual as investment firms regularly adjust their portfolios for a variety of strategic reasons.

Blackrock California Municipal Income Trust is a fund that seeks to provide income exempt from federal and California income taxes by investing primarily in California municipal bonds. The trust's performance and distributions are of interest to investors seeking tax-efficient income.

The reported transactions were signed off by William Manzolillo and Boaz Weinstein, with the latter being a known figure in the finance world and a ten percent owner of Saba Capital Management. These filings provide transparency into the trading activities of significant shareholders and company insiders, offering investors insight into the movements of large stakeholders in publicly traded entities.

InvestingPro Insights

The latest transactions involving Blackrock California Municipal Income Trust (NYSE:BFZ) by Saba Capital Management highlight the dynamic nature of investment strategies. For investors analyzing BFZ's current market position, InvestingPro offers real-time data and insights that could be valuable in understanding the trust's financial health and potential.

As of the last twelve months as of Q2 2024, BFZ has a market capitalization of $347.85 million and a P/E ratio of 44.19, indicating investors' valuation of its earnings. The trust has seen a revenue growth of 5.76% during the same period, with the recent quarterly growth slightly higher at 7.23%. This suggests a steady increase in the trust's income-generating ability, an important factor for income-focused investors.

InvestingPro Tips for BFZ reveal that the stock typically experiences low price volatility, which may appeal to investors seeking stability. However, it is important to note that short-term obligations exceed liquid assets, which could indicate potential liquidity risks. Despite a valuation that implies a poor free cash flow yield, BFZ has maintained dividend payments for 24 consecutive years, currently offering a dividend yield of 5.21%, as of the ex-date of the last dividend on April 12, 2024. This consistent dividend history is a testament to BFZ's commitment to returning value to shareholders.

For those looking to delve deeper into BFZ's financials and future prospects, there are additional InvestingPro Tips available that could provide further clarity. By using the coupon code PRONEWS24, investors can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking valuable insights that can inform investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.