On October 9, 2023, Saba Capital Management, L.P. (Trades, Portfolio), a New York-based investment firm, added 17,273 shares of Blackrock CA Muni Income Tr (BFZ, Financial) to its portfolio. The shares were acquired at a price of $10.2 per share, bringing the firm's total holdings in BFZ to 4,579,630 shares. This transaction represents a 0.38% change in the firm's holdings and a 1.22% position in its portfolio. The firm now holds a 15.13% stake in BFZ.
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 primarily focuses on the Financial Services and Technology sectors. 
Blackrock CA Muni Income Tr: A Brief Overview
Blackrock CA Muni Income Tr (BFZ, Financial) is a closed-end management investment company based in the USA. The company's primary objective is to provide current income exempt from regular U.S. federal income tax. It achieves this by investing a majority of its total assets in municipal bonds. As of October 11, 2023, the company has a market capitalization of $309.402 million and its stock is trading at $10.22 per share. 
Performance Analysis of BFZ
BFZ's PE Percentage currently stands at 0.00, indicating that the company is operating at a loss. However, the stock is significantly undervalued according to its GF-Score, which is 15.06. The stock's year-to-date price change ratio is -6.24, and it has a GF Score of 60/100, suggesting a moderate future performance potential.
Financial Health of BFZ
BFZ's Financial Strength is rated 5/10, while its Profitability Rank is 2/10. The company's Growth Rank is 0/10, indicating no significant growth in recent years. The company's Piotroski F-Score is 4, and its Altman Z score is 0.00, suggesting potential financial distress. The company's ROE and ROA are -9.92 and -6.07, respectively.
BFZ's Momentum
BFZ's RSI 5 Day is 3.13, its RSI 9 Day is 8.29, and its RSI 14 Day is 12.88. The stock's Momentum Index 6 - 1 Month is -6.80, and its Momentum Index 12 - 1 Month is 5.68. These figures suggest a negative short-term momentum but a positive momentum over a longer period.
Conclusion
In conclusion, Saba Capital Management, L.P. (Trades, Portfolio)'s recent acquisition of BFZ shares represents a significant addition to its portfolio. Despite BFZ's current financial challenges, the stock's significant undervaluation and moderate GF Score suggest potential for future performance. This transaction could offer value investors an opportunity to capitalize on BFZ's potential turnaround. However, investors should also consider the company's financial health and momentum indicators when making investment decisions.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
