NEW YORK—Saba Capital Management, L.P., reported significant sales of BlackRock (NYSE:BLK) Capital Allocation Term Trust (NYSE:BCAT) stock in recent transactions. The firm, led by Boaz Weinstein, sold a total of 108,852 shares over two days, amounting to approximately $1.74 million.
On November 19, Saba Capital sold 76,676 shares at a price of $16.01 per share. The following day, November 20, an additional 32,176 shares were sold at $15.92 per share. These transactions have reduced Saba Capital's holdings in BlackRock Capital to 14,261,318 shares.
Saba Capital, known for its active investment strategies, remains a significant shareholder in BlackRock Capital despite these recent sales.
InvestingPro Insights
Recent data from InvestingPro sheds light on BlackRock Capital Allocation Term Trust's (NYSE:BCAT) current market position and performance. As of the latest available information, BCAT boasts a market capitalization of $1.71 billion, reflecting its substantial presence in the investment trust sector.
The trust's P/E ratio stands at a modest 8.78, potentially indicating an attractive valuation relative to its earnings. This could be of particular interest to value-oriented investors, especially in light of Saba Capital's recent share sales.
One of the most striking metrics is BCAT's impressive dividend yield of 21.75%, with the most recent ex-dividend date on November 15, 2024. This high yield may explain why Saba Capital maintains a significant position despite its recent sales, as income-focused investors often find such robust dividends appealing.
InvestingPro Tips highlight additional insights:
1. BCAT has maintained dividend payments for 3 consecutive years, demonstrating a commitment to shareholder returns.
2. The trust has a high dividend yield, which aligns with the reported 21.75% figure and underscores its appeal to income-seeking investors.
These tips are just a sample of the 11 additional tips available for BCAT on InvestingPro, offering subscribers a deeper understanding of the trust's financial health and market position.
The trust's year-to-date price total return of 23.22% and one-year return of 26.47% suggest strong performance, which may have influenced Saba Capital's decision to realize some gains while maintaining a substantial stake. With BCAT's price currently at 93.42% of its 52-week high, investors might be watching closely to see if it will test new highs in the near future.
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