On September 12, 2023, Saba Capital Management, L.P., a 10% owner of Blackrock CA Muni Income Tr (BFZ, Financial), purchased 30,073 shares of the company. This move is significant as it provides insight into the insider's confidence in the company's future performance.
Saba Capital Management, L.P. is an investment firm that specializes in credit strategies. The firm is known for its active management approach and its focus on capital preservation. As a 10% owner of Blackrock CA Muni Income Tr, the firm's investment decisions can have a significant impact on the company's stock price.
Blackrock CA Muni Income Tr is a closed-end management investment company. The Trust's investment objective is to provide current income exempt from regular federal income tax and California income tax. The Trust seeks to achieve its investment objective by investing at least 80% of its assets in municipal bonds exempt from federal and California income taxes.
Over the past year, Saba Capital Management, L.P. has purchased a total of 1,085,452 shares and has not sold any shares. This trend indicates a strong belief in the company's potential for growth and profitability.
The insider transaction history for Blackrock CA Muni Income Tr shows a total of 16 insider buys over the past year, with no insider sells. This trend suggests that insiders are confident in the company's future performance and see the current stock price as an attractive entry point.
On the day of the insider's recent buy, shares of Blackrock CA Muni Income Tr were trading at $10.95, giving the company a market cap of $334.581 million.
With a price of $10.95 and a GuruFocus Value of $15.06, Blackrock CA Muni Income Tr has a price-to-GF-Value ratio of 0.73. This suggests that the stock is modestly undervalued based on its GF Value. The GF Value is an intrinsic value estimate developed by GuruFocus, calculated based on historical multiples, a GuruFocus adjustment factor, and future estimates of business performance from Morningstar analysts.
In conclusion, the recent insider buying activity by Saba Capital Management, L.P. indicates a strong belief in the future performance of Blackrock CA Muni Income Tr. With the stock currently trading below its intrinsic value, now may be an opportune time for investors to consider adding Blackrock CA Muni Income Tr to their portfolios.
