Saba Capital Management, L.P. has recently offloaded shares of BlackRock (NYSE:BLK) Capital Allocation Term Trust (NYSE:BCAT), according to a recent SEC filing. The firm sold a total of 15,482 shares on October 25 at a price of $16.12 per share, amounting to approximately $249,569.
Following this transaction, Saba Capital Management's total holdings in the trust stand at 14,830,051 shares. The sale was executed indirectly, as indicated in the filing. Boaz Weinstein, also listed as a reporting owner, shares the same business address as Saba Capital Management, suggesting a close association in this transaction.
The transaction was reported on October 28, providing transparency to investors about the recent changes in stock ownership by a significant shareholder.
InvestingPro Insights
While Saba Capital Management has reduced its position in BlackRock Capital Allocation Term Trust (NYSE:BCAT), individual investors might find the trust's current metrics intriguing. 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 price-to-earnings ratio of 8.78, suggesting it may be undervalued compared to its peers. This valuation metric could be particularly interesting in light of Saba Capital's recent sale.
Another InvestingPro Tip indicates that the stock "generally trades with low price volatility." This characteristic, combined with the high dividend yield, might appeal to income-focused investors seeking stability. The trust's year-to-date price total return of 22.42% and one-year return of 35.82% demonstrate strong performance, which could explain why it's trading at 93.6% of its 52-week high.
For investors considering BCAT, it's worth noting that InvestingPro offers additional tips and insights beyond those mentioned here. The platform provides a comprehensive analysis that could be valuable for making informed investment decisions in the current market environment.
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