Introduction to the Transaction
On September 7, 2023, Saba Capital Management, L.P., a New York-based investment firm, increased its stake in ClearBridge Energy Midstream Opportunity Fund Inc (EMO, Financial). The firm added 37,946 shares to its holdings, representing a trade change of 1.54%. This transaction had a minor impact of 0.03% on the firm's portfolio. The shares were acquired at a trade price of $31.48 each, bringing the total shares held by the firm to 2,501,314. This acquisition now represents 2.05% of the firm's portfolio and 19.56% of the firm's holdings in the traded stock.
Profile of the Guru
Saba Capital Management, L.P. is an investment firm located at 405 Lexington Avenue, New York. The firm manages an equity portfolio worth $3.84 billion, spread across 624 stocks. Its top holdings include Templeton Global Income Fund(GIM, Financial), BlackRock Capital Allocation Trust(BCAT, Financial), BlackRock Health Sciences Trust II(BMEZ, Financial), BlackRock Innovation & Growth Tr(BIGZ, Financial), and BlackRock ESG Capital Allocation Trust(ECAT, Financial). The firm's investments are primarily concentrated in the Financial Services and Technology sectors.
Overview of the Traded Stock
ClearBridge Energy Midstream Opportunity Fund Inc (EMO, Financial) is a non-diversified, closed-end management investment company based in the USA. The company, which went public on June 10, 2011, aims to provide long-term investors with a high level of total return with an emphasis on cash distributions. The company operates in a single segment and has a market capitalization of $400.882 million. The current stock price is $31.35, and the company's PE percentage is not applicable as it is currently at a loss. The GF Value of the stock cannot be evaluated due to insufficient data.
Evaluation of the Stock's Performance
Since its IPO, the stock has seen a price change of -66.84%. However, year-to-date, the stock has gained 13.63%. The GF-Score of the stock is 40/100, indicating a poor future performance potential. The stock's Financial Strength is ranked 5/10, while its Profitability Rank is 2/10. The Growth Rank and GF Value Rank are not applicable due to insufficient data. However, the stock's Momentum Rank is 10/10, indicating strong momentum.
Assessment of the Stock's Future Performance Potential
The stock's Piotroski F-Score is 4, suggesting average financial health. The Altman Z score and cash to debt ratio are not applicable due to insufficient data. The stock's industry is Asset Management, with a ROE of -7.94 and a ROA of -5.44. The stock's gross margin growth, operating margin growth, and 3-year revenue growth are not applicable due to insufficient data.
Examination of the Stock's Industry Performance
The stock's industry, Asset Management, has seen a decline in performance, with the stock's ROE and ROA ranking at 1238 and 1225 respectively. The stock's gross margin growth, operating margin growth, and 3-year revenue growth are not applicable due to insufficient data.
Evaluation of the Stock's Momentum
The stock's RSI 5 Day is 52.76, RSI 9 Day is 51.86, and RSI 14 Day is 52.24. The stock's Momentum Index 6 - 1 Month is 13.72, and Momentum Index 12 - 1 Month is 10.42. The stock's RSI 14 Day Rank is 1225, and its Momentum Index 6 - 1 Month Rank is 335.
Transaction Analysis
The recent acquisition by Saba Capital Management, L.P. indicates a strong belief in the potential of ClearBridge Energy Midstream Opportunity Fund Inc. Despite the stock's poor performance metrics and the lack of data for a comprehensive evaluation, the firm's decision to increase its stake could be based on the stock's strong momentum and the firm's investment strategy. This transaction has slightly increased the firm's exposure to the Financial Services sector and could influence the performance of the firm's portfolio depending on the future performance of the stock.
