On October 27, 2023, Saba Capital Management, L.P. (Trades, Portfolio), a renowned investment firm, added 68,260 shares of ClearBridge MLP & Midstream Fund Inc. (CEM, Financial) to its portfolio. This article provides an in-depth analysis of this transaction, the profiles of the involved parties, and the potential implications for investors.
Details of the Transaction
The transaction was executed at a price of $34.53 per share, resulting in a 3.96% change in the firm's holdings. This addition has a 0.06% impact on Saba Capital's portfolio, bringing its total holdings in CEM to 1,793,202 shares. This represents 1.61% of the firm's portfolio and 13.49% of CEM's total shares.
Profile of Saba Capital Management, L.P. (Trades, Portfolio)
Saba Capital Management, L.P. (Trades, Portfolio), located at 405 Lexington Avenue, New York, NY 10174, is a prominent investment firm with a diverse portfolio. 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 equity stands at $3.84 billion, with a strong focus on the Financial Services and Technology sectors.
Overview of ClearBridge MLP & Midstream Fund Inc.
ClearBridge MLP & Midstream Fund Inc. (CEM, Financial) is a non-diversified, closed-end management investment company based in the USA. The company's primary objective is to provide a high level of total return with an emphasis on cash distributions. It achieves this by investing primarily in energy master limited partnerships (MLPs) and energy midstream entities. The company operates in a single segment and has a market capitalization of $454.263 million. The current stock price stands at $34.17.
Analysis of ClearBridge MLP & Midstream Fund Inc.'s Stock
CEM's stock has a PE percentage of 0.00, indicating that the company is currently at a loss. The GF Value of the stock is also 0.00, suggesting that the stock's intrinsic value cannot be evaluated. Since the transaction, the stock's price has decreased by 1.04%. The stock's year-to-date price change ratio is 5.76%, and it has decreased by 65.83% since its IPO on June 25, 2010. The stock's GF Score is 41/100, indicating poor future performance potential.
Evaluation of ClearBridge MLP & Midstream Fund Inc.'s Financial Health
CEM's financial strength is ranked 5/10, while its profitability rank is 2/10. The company's growth rank is 0/10, indicating no growth. The GF Value Rank and Momentum Rank are also 0/10 and 10/10, respectively. The company's Piotroski F-Score is 4, and its Altman Z score is 0.00, indicating financial instability. The company's cash to debt ratio is also 0.00, which is concerning.
Performance Metrics of ClearBridge MLP & Midstream Fund Inc.
CEM's return on equity (ROE) and return on assets (ROA) are -8.16% and -5.61%, respectively. The company's gross margin growth, operating margin growth, and 3-year revenue growth are all 0.00. The company's EBITDA growth and earning growth over 3 years are also 0.00.
Momentum and Predictability of ClearBridge MLP & Midstream Fund Inc.'s Stock
CEM's RSI 5-day, 9-day, and 14-day values are 22.48, 32.25, and 37.37, respectively. The company's momentum index 6 - 1 month and 12 - 1 month are 6.73 and 0.95, respectively. The company's RSI 14-day rank and momentum index 6 - 1 month rank are 964 and 271, respectively.
In conclusion, Saba Capital Management, L.P. (Trades, Portfolio)'s recent acquisition of CEM shares represents a significant addition to its portfolio. However, given CEM's current financial health and performance metrics, investors should exercise caution and conduct thorough research before 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.
