NEW YORK—Saba Capital Management, L.P., a significant shareholder in BlackRock (NYSE:BLK) Capital Allocation Term Trust (NYSE:BCAT), has recently divested a substantial portion of its holdings. According to a recent SEC filing, the firm sold a total of 186,042 shares of common stock over two days, amounting to approximately $2.99 million. The sales occurred on October 31 and November 1, with prices ranging from $15.99 to $16.10 per share.
Following these transactions, Saba Capital Management retains an indirect ownership of 14,644,009 shares in the trust. The sales were executed under the signature of Zachary Gindes for Saba Capital Management and Boaz Weinstein, further underscoring the strategic financial maneuvers made by the firm.
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 financial metrics intriguing. According to InvestingPro data, BCAT boasts a remarkable dividend yield of 21.49%, with the last ex-dividend date on October 15, 2024. This aligns with an InvestingPro Tip indicating that BCAT "pays a significant dividend to shareholders," which could be particularly appealing to income-focused investors.
The trust's market capitalization stands at $1.72 billion, with a price-to-earnings ratio of 8.78, suggesting a potentially undervalued position relative to earnings. This valuation metric, coupled with the InvestingPro Tip that the "stock generally trades with low price volatility," may offer some reassurance to risk-averse investors considering BCAT despite Saba's recent sell-off.
Year-to-date, BCAT has delivered a total return of 21.89%, outperforming many other investment vehicles in the current market environment. However, potential investors should note that another InvestingPro Tip warns that BCAT "suffers from weak gross profit margins," which could impact long-term performance.
For a more comprehensive analysis, InvestingPro offers additional tips and metrics that could provide deeper insights into BCAT's investment potential. Investors are encouraged to explore the full range of data available on the InvestingPro platform to make well-informed decisions.
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