Saba Capital Management, L.P., a significant shareholder in BlackRock (NYSE:BLK) California Municipal Income Trust (NYSE:BFZ), disclosed a sale of 2,874 shares on October 29, as per a recent SEC filing. The shares were sold at an average price of $11.82, amounting to a total transaction value of $33,970. Following this transaction, Saba Capital continues to hold 5,230,381 shares indirectly. The filing was signed by Zachary Gindes on behalf of Saba Capital Management.
InvestingPro Insights
While Saba Capital Management reduced its position in BlackRock California Municipal Income Trust (NYSE:BFZ), individual investors might find the stock's characteristics intriguing. According to InvestingPro data, BFZ boasts a market capitalization of $352.35 million and a dividend yield of 6.06%, which could be attractive for income-focused investors.
InvestingPro Tips reveal that BFZ has maintained dividend payments for 24 consecutive years, demonstrating a commitment to shareholder returns. This consistency aligns with the trust's focus on providing tax-free income to investors. Additionally, the stock generally trades with low price volatility, which may appeal to risk-averse investors seeking stable municipal bond exposure.
However, it's worth noting that BFZ's P/E ratio stands at 29.35, which may be considered high by some valuation standards. This metric, combined with the InvestingPro Tip indicating that the valuation implies a poor free cash flow yield, suggests investors should carefully consider the trust's current pricing relative to its fundamentals.
For a more comprehensive analysis, InvestingPro offers additional tips and metrics that could provide deeper insights into BFZ's investment potential. Investors interested in a fuller picture can explore 3 more InvestingPro Tips available for this stock.
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