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Saba Capital Management, L.P., a significant stakeholder in BlackRock (NYSE:BLK) Innovation & Growth Term Trust (NYSE:BIGZ), recently acquired additional shares in the company. According to a recent SEC filing, Saba Capital purchased 11,621 shares at a price of $7.58 per share, amounting to a total transaction value of $88,087. This acquisition brings Saba Capital's total holdings to 57,153,676 shares. The transaction underscores Saba Capital's continued investment in the trust, which focuses on innovation and growth opportunities.
InvestingPro Insights
Saba Capital's recent acquisition of BlackRock Innovation & Growth Term Trust (NYSE:BIGZ) shares aligns with the trust's attractive dividend profile. According to InvestingPro data, BIGZ currently offers a substantial dividend yield of 13.81%, with the last ex-dividend date on October 15, 2024. This high yield could be a key factor in Saba Capital's decision to increase its stake.
InvestingPro Tips highlight that BIGZ "pays a significant dividend to shareholders," which supports the trust's appeal to income-focused investors like Saba Capital. However, it's worth noting that the same source indicates BIGZ "suffers from weak gross profit margins" and its "valuation implies a poor free cash flow yield." These factors may present challenges for the trust's long-term growth prospects.
Despite these concerns, BIGZ has shown strong performance over the past year, with a 25.38% price total return. The trust is currently trading at 90.55% of its 52-week high, suggesting potential upside. With a market capitalization of $1.64 billion and a P/E ratio of 7.87, BIGZ may still offer value for investors like Saba Capital who are willing to navigate the balance between high dividends and underlying financial metrics.
For readers interested in a more comprehensive analysis, InvestingPro offers additional tips and insights on BIGZ's financial health and market position.
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