Saba Capital Management, L.P., a significant stakeholder in BlackRock (NYSE:BLK) Capital Allocation Term Trust (NYSE:BCAT), has reported the sale of shares totaling approximately $1.3 million. The sales, disclosed in a recent SEC filing, occurred over two days. On November 12, Saba Capital sold 39,120 shares at $16.34 each, followed by the sale of 40,910 shares on November 13 at $16.39 per share. Following these transactions, Saba Capital's holdings in the trust stand at 14,472,635 shares. The transactions reflect Saba Capital's ongoing portfolio adjustments under the management of Boaz Weinstein.
InvestingPro Insights
While Saba Capital Management has reduced its stake in BlackRock Capital Allocation Term Trust (NYSE:BCAT), individual investors might find the trust's current valuation and dividend yield intriguing. According to InvestingPro data, BCAT boasts a remarkable dividend yield of 21.24%, 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 P/E ratio of 8.78 suggests a potentially attractive valuation, especially when considered alongside its market capitalization of $1.75 billion. BCAT has also demonstrated solid performance, with a year-to-date total return of 23.94% and a one-year total return of 26.96%, indicating positive momentum despite Saba Capital's recent share sales.
Another InvestingPro Tip highlights that the stock "generally trades with low price volatility," which could appeal to investors seeking stability in their portfolio. This characteristic is supported by the trust's current price being 95.11% of its 52-week high, suggesting relatively steady performance.
For investors interested in a deeper analysis, InvestingPro offers additional tips and metrics that could provide further insights into BCAT's investment potential.
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