NEW YORK—Saba Capital Management, L.P., a significant stakeholder in BlackRock (NYSE:BLK) Capital Allocation Term Trust (NYSE:BCAT), reported the sale of 16,816 shares on November 25, 2024. The shares were sold at an average price of $16.20 per share, amounting to a total transaction value of $272,419.
Following this sale, Saba Capital holds approximately 14,239,283 shares of BlackRock Capital. The transaction was disclosed in a recent SEC filing, which also lists Boaz Weinstein as a ten percent owner. The sale reflects Saba Capital's ongoing management of its investment portfolio in the trust.
InvestingPro Insights
While Saba Capital Management has reduced its stake in BlackRock Capital Allocation Term Trust (NYSE:BCAT), the trust continues to offer attractive features for income-focused investors. According to InvestingPro data, BCAT boasts a remarkable dividend yield of 21.39% for 2024, with the most recent ex-dividend date on November 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 $1.74 billion, with a P/E ratio of 8.78, suggesting a potentially undervalued position. BCAT has shown positive price performance across various timeframes, with a year-to-date total return of 25.31% and a one-year total return of 28.79%. These figures indicate strong momentum, despite another InvestingPro Tip cautioning that the stock "generally trades with low price volatility."
Investors considering BCAT should note that its current price is 94.18% of its 52-week high, trading at a previous close of $16.19. This price point is close to the average at which Saba Capital sold its shares, potentially signaling a perceived fair value by major stakeholders.
For a more comprehensive analysis, InvestingPro offers additional tips and metrics that could provide deeper insights into BCAT's investment potential. Currently, there are 4 more InvestingPro Tips available for BCAT, which could be valuable for investors looking to make informed decisions about this high-yielding trust.
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