Saba Capital Management, L.P., a prominent investment management firm, recently disclosed significant stock sales in Nuveen New Jersey Quality Municipal Income Fund (NYSE:NXJ). The transactions, reported on November 25, 2024, involved the sale of 58,863 shares in two separate transactions conducted on November 21 and November 22. The shares were sold at prices ranging from $12.22 to $12.24, amounting to a total value of $720,239.
Following these transactions, Saba Capital Management retains ownership of 5,712,796 shares in the municipal income fund. The filings also list Boaz Weinstein as a ten percent owner, alongside Saba Capital Management, reflecting their significant stake in the fund. This sale is part of ongoing portfolio adjustments by the firm, which remains a substantial shareholder in the fund.
InvestingPro Insights
While Saba Capital Management has reduced its position in Nuveen New Jersey Quality Municipal Income Fund (NYSE:NXJ), the fund continues to offer attractive features for income-focused investors. According to InvestingPro data, NXJ boasts a substantial dividend yield of 7.63%, underscoring its appeal to those seeking steady income streams. This aligns with one of the InvestingPro Tips, which highlights that NXJ "pays a significant dividend to shareholders."
Moreover, the fund has demonstrated remarkable consistency in its dividend payments, maintaining them for 24 consecutive years. This long-standing commitment to shareholder returns speaks to the fund's stability and management's focus on income generation, which may explain why large investors like Saba Capital maintain significant positions despite occasional sales.
The fund's financial health appears robust, with a gross profit margin of 100% for the last twelve months as of Q4 2024, indicating efficient management of its investment portfolio. Additionally, NXJ's P/E ratio of 13.67 suggests a reasonable valuation relative to its earnings, which could be attractive for value-oriented investors.
It's worth noting that NXJ generally trades with low price volatility, as pointed out by another InvestingPro Tip. This characteristic may appeal to risk-averse investors looking for stable municipal bond exposure.
For those interested in a more comprehensive analysis, InvestingPro offers additional insights with 6 more tips available for NXJ, providing a deeper understanding of the fund's investment profile.
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