On October 10, 2023, Saba Capital Management, L.P. (Trades, Portfolio) added 1,600 shares to its holdings in Blackrock CA Muni Income Tr (BFZ, Financial), bringing its total stake to 4,581,230 shares. The shares were acquired at a price of $10.18 each. This transaction increased Saba Capital's position in BFZ to 1.22% of its portfolio and represents 15.13% of BFZ's total shares.
About Saba Capital Management, L.P. (Trades, Portfolio)
Saba Capital Management, L.P. (Trades, Portfolio), a New York-based investment firm, manages a portfolio of 624 stocks with a total equity of $3.84 billion. The firm's 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 Blackrock CA Muni Income Tr
Blackrock CA Muni Income Tr (BFZ, Financial) is a U.S.-based closed-end management investment company. 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. The company, which operates in a single segment, has a market capitalization of $314.851 million. BFZ was listed on the stock exchange on July 27, 2001. The company's current stock price is $10.4. 
Performance and Valuation of BFZ
BFZ is currently significantly undervalued according to the GF-Score, with a GF Value of $15.06. The stock's price to GF Value ratio is 0.69, indicating a potential upside. Since the transaction, the stock has gained 2.16%, but it has declined by 4.59% year-to-date. The stock's GF Score is 60/100, suggesting a moderate future performance potential.
Financial Health and Profitability of BFZ
BFZ has a Financial Strength rank of 5/10 and a Profitability Rank of 2/10. The company's Growth Rank is 0/10, indicating no significant growth in recent years. However, the stock's GF Value Rank is 9/10, suggesting that it is undervalued. The company's Momentum Rank is 7/10, indicating a positive momentum in its stock price.
Return on Equity and Assets
BFZ has a return on equity (ROE) of -9.92 and a return on assets (ROA) of -6.07. The company's ROE and ROA ranks are 1374 and 1336, respectively. The company has not shown any growth in gross margin or operating margin.
Growth Over the Past Three Years
Over the past three years, BFZ has not shown any significant growth in revenue, EBITDA, or earnings. This is reflected in its Growth Rank of 0/10.
Momentum and Predictability
BFZ's RSI 5 Day is 3.13, RSI 9 Day is 8.29, and RSI 14 Day is 12.88. The company's RSI 14 Day rank is 86. The company's Momentum Index 6 - 1 Month is -7.91, and its Momentum Index 12 - 1 Month is 5.65. The company's Momentum Index 6 - 1 Month rank is 1214. The company's predictability rank is not available.
Conclusion
The recent transaction by Saba Capital Management, L.P. (Trades, Portfolio) in BFZ represents a significant increase in its stake in the company. Despite BFZ's lack of growth and profitability, the stock is significantly undervalued according to the GF Value, suggesting a potential upside. This, combined with the positive momentum in its stock price, may have influenced Saba Capital's decision to increase its stake in the company.
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.
