NEW YORK—Saba Capital Management, L.P. and Boaz Weinstein, both significant shareholders of BlackRock (NYSE:BLK) Capital Allocation Term Trust (NYSE:BCAT), have sold shares worth approximately $700,625, according to a recent filing with the Securities and Exchange Commission.
The transactions occurred over two days. On October 22, 19,442 shares were sold at a price of $16.20 per share. The following day, October 23, saw the sale of 23,895 shares at $16.14 per share. These sales leave Saba Capital and Weinstein with a remaining holding of 14,845,533 shares in the trust.
The sale of shares was reported as indirect ownership, indicating the shares were likely held through an entity rather than directly by Saba Capital or Weinstein. The transactions reflect a minor reduction in their overall holdings in the BlackRock fund, which is known for its diversified investment strategy.
InvestingPro Insights
While Saba Capital and Boaz Weinstein have reduced their stake in BlackRock Capital Allocation Term Trust (NYSE:BCAT), the trust continues to offer attractive features for income-focused investors. According to InvestingPro data, BCAT boasts a remarkable dividend yield of 21.4%, with the most recent ex-dividend date on October 15, 2024. This aligns with one of the InvestingPro Tips, which notes that BCAT "pays a significant dividend to shareholders."
The trust's market capitalization stands at $1.73 billion, with a relatively low P/E ratio of 8.78, potentially indicating an undervalued position. Despite the recent share sales by major shareholders, BCAT has demonstrated strong performance, with a year-to-date total return of 22.42% and a one-year total return of 32.91%.
Another InvestingPro Tip highlights that the stock "generally trades with low price volatility," which may appeal to risk-averse investors seeking stable income. This characteristic is supported by the trust's price being at 93.89% of its 52-week high, suggesting relatively steady performance.
For investors interested in a deeper analysis, InvestingPro offers additional tips and metrics to further evaluate BCAT's investment potential. There are 2 more InvestingPro Tips available for BCAT, providing a more comprehensive view of the trust's financial health and market position.
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