Saba Capital Management, L.P., along with Boaz Weinstein, has reported a purchase of common stock in Gabelli Healthcare & WellnessRx Trust (NYSE:GRX). The transaction, dated November 1, 2024, involved the acquisition of 3,448 shares at a price of $10.33 per share, amounting to a total value of $35,617. Following this transaction, Saba Capital Management now holds 1,860,788 shares of the trust. Both Saba Capital Management and Boaz Weinstein are listed as ten percent owners of the company.
InvestingPro Insights
Following Saba Capital Management's recent purchase of Gabelli Healthcare & WellnessRx Trust (NYSE:GRX) shares, it's worth noting some key financial metrics and insights from InvestingPro that may shed light on this investment decision.
GRX currently boasts a market capitalization of $163.53 million, with a dividend yield of 5.83% as of the most recent data. This attractive yield is supported by the company's consistent dividend payments, which InvestingPro Tips highlight have been maintained for 13 consecutive years. This track record of steady dividends could be a factor in Saba Capital's increased stake, particularly for investors seeking income in the healthcare sector.
The stock's recent performance has been mixed, with a 1-month price total return of -5.77%, but a more impressive 1-year return of 31.05%. This long-term positive trend, combined with the stock trading at 92.08% of its 52-week high, suggests that GRX has shown resilience and growth potential over the past year.
An InvestingPro Tip indicates that the stock generally trades with low price volatility, which may appeal to institutional investors like Saba Capital who seek stability in their portfolio holdings. However, it's important to note that GRX suffers from weak gross profit margins, according to another InvestingPro Tip, which could be a point of concern for value-focused investors.
For readers interested in a more comprehensive analysis, InvestingPro offers additional tips and metrics beyond those mentioned here. In fact, there are 11 more InvestingPro Tips available for GRX, providing a deeper dive into the company's financial health and market position.
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