Saba Capital Management, L.P. Increases Stake in Blackrock Muniyield Pennsylvania Quality Fund

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On October 3, 2023, Saba Capital Management, L.P. (Trades, Portfolio), a New York-based investment firm, added 25,613 shares of Blackrock Muniyield Pennsylvania Quality Fund (MPA, Financial) to its portfolio. The shares were acquired at a price of $10.36 per share, bringing the firm's total holdings in MPA to 1,704,982 shares. This transaction represents a 1.53% change in shares and has a 0.01% impact on the firm's portfolio. The firm now holds a 12.97% stake in MPA, making it a significant part of its investment strategy.

About Saba Capital Management, L.P. (Trades, Portfolio)

Saba Capital Management, L.P. (Trades, Portfolio) is a prominent investment firm located at 405 Lexington Avenue, New York. The firm manages a diverse portfolio of 624 stocks, with a total equity of $3.84 billion. 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 investment strategy is primarily focused on the Financial Services and Technology sectors. 1709388068793876480.png

Blackrock Muniyield Pennsylvania Quality Fund Overview

Blackrock Muniyield Pennsylvania Quality Fund (MPA, Financial) is a closed-end fund based in the USA. The fund's primary objective is to provide shareholders with current income exempt from U.S. federal and Pennsylvania income taxes. Operating in a single segment, the fund has a market capitalization of $136.328 million and a current stock price of $10.37. 1709388048619274240.png

Analysis of Blackrock Muniyield Pennsylvania Quality Fund's Stock

MPA's stock is currently significantly undervalued according to GuruFocus's GF Valuation, with a GF Value of $35.38 and a Price to GF Value ratio of 0.29. Since its IPO, the stock has experienced a price change of -30.87%, and a year-to-date price change ratio of -6.91%. The stock's GF Score is 52/100, indicating poor future performance potential. The stock's Balance Sheet Rank is 5/10, its Profitability Rank is 2/10, and its Growth Rank is 0/10. The stock's GF Value Rank and Momentum Rank are both 4/10.

Financial Health of Blackrock Muniyield Pennsylvania Quality Fund

MPA's financial health is characterized by a ROE of -11.33 and a ROA of -6.94. The fund's Gross Margin Growth, Operating Margin Growth, and Earning Growth over the past three years are all 0.00. The fund's RSI 5 Day is 22.86, its RSI 9 Day is 22.30, and its RSI 14 Day is 24.73. The fund's Momentum Index 6 - 1 Month is -6.08, and its Momentum Index 12 - 1 Month is -8.28.

Conclusion

In conclusion, Saba Capital Management, L.P. (Trades, Portfolio)'s recent acquisition of additional shares in Blackrock Muniyield Pennsylvania Quality Fund is a significant move that increases its stake in the fund to 12.97%. This transaction could potentially impact the firm's portfolio and the stock of MPA. However, given MPA's current financial health and stock performance, investors should exercise caution and conduct further research before making investment decisions.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.