Saba Capital Management, L.P. and Boaz Weinstein, both significant stakeholders in BlackRock (NYSE:BLK) Capital Allocation Term Trust (NYSE:BCAT), have reported the sale of shares valued at approximately $457,062. The transaction, dated November 18, 2024, involved the sale of 28,442 shares at a price of $16.07 per share. Following this transaction, the total shares held by the reporting parties stand at 14,370,170.
InvestingPro Insights
The recent sale of shares by Saba Capital Management and Boaz Weinstein in BlackRock Capital Allocation Term Trust (NYSE:BCAT) comes at a time when the trust's stock is trading near its 52-week high. According to InvestingPro data, BCAT's price is currently at 93.25% of its 52-week high, with a previous closing price of $16.04.
Notably, BCAT offers an attractive dividend yield, which InvestingPro Tips highlight as a significant payout to shareholders. The trust's dividend yield for 2024 stands at an impressive 21.59%, with the most recent ex-dividend date on November 15, 2024. This high yield could be a factor in investor interest, despite the recent share sale by major stakeholders.
The trust's valuation metrics present an interesting picture. With a P/E ratio of 8.78, BCAT appears to be trading at a relatively low multiple compared to many other financial instruments. However, an InvestingPro Tip suggests that the stock's valuation implies a poor free cash flow yield, which investors should consider alongside the attractive dividend.
BCAT's market performance has been positive across various timeframes, with a year-to-date total return of 24.15% and a one-year total return of 27.34%. These figures indicate strong performance, which may have influenced the timing of the share sale reported by Saba Capital Management and Boaz Weinstein.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights that could provide further context to BCAT's financial position and market outlook. There are 4 more InvestingPro Tips available for BCAT, which could be valuable for those considering investment decisions related to this trust.
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