Saba Capital Management, L.P., a significant shareholder in BlackRock (NYSE:) Capital Allocation Term Trust (NYSE:BCAT), has recently sold 4,649 shares of the trust. The transaction, executed on November 4, 2024, was completed at a price of $16.07 per share, totaling approximately $74,709. Following this sale, Saba Capital Management holds 14,639,360 shares in the trust. The filing was signed by Zachary Gindes on behalf of Saba Capital Management and by Boaz Weinstein.
InvestingPro Insights
While Saba Capital Management has reduced its position in BlackRock Capital Allocation Term Trust (NYSE:BCAT), individual investors might find the trust’s current valuation and dividend yield intriguing. According to InvestingPro data, BCAT’s P/E ratio stands at a modest 8.78, potentially indicating an undervalued opportunity. Moreover, the trust offers an impressive dividend yield of 21.66% for 2024, with the last ex-dividend date on October 15, 2024.
InvestingPro Tips highlight that BCAT “pays a significant dividend to shareholders” and “generally trades with low price volatility.” These characteristics may appeal to income-focused investors seeking stability. The trust’s year-to-date price total return of 20.97% and one-year return of 27.17% suggest positive momentum, despite the recent share sale by Saba Capital Management.
It’s worth noting that BCAT’s current price is 93.02% of its 52-week high, indicating it’s trading near its peak levels. Investors considering BCAT should be aware that InvestingPro offers 8 additional tips for a more comprehensive analysis of the trust’s investment potential.
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