BlackRock capital allocation term trust sees $1.8m in stock sales By Investing.com

NEW YORK—Saba Capital Management, L.P., along with Boaz Weinstein, reported significant stock sales in BlackRock (NYSE:) Capital Allocation Term Trust (NYSE:BCAT) as per the latest SEC filings. The transactions, executed on October 15 and 16, involved the sale of 71,354 and 40,158 shares, respectively.

The shares were sold at prices ranging from $16.27 to $16.32, amounting to a total value of approximately $1.8 million. Following these transactions, the reporting entities collectively hold 14,969,295 shares of the trust.

These transactions highlight ongoing portfolio adjustments by major stakeholders in BlackRock Capital Allocation Term Trust.

InvestingPro Insights

Recent transactions by Saba Capital Management in BlackRock Capital Allocation Term Trust (NYSE:BCAT) offer an intriguing backdrop to the fund’s current financial landscape. According to InvestingPro data, BCAT boasts a remarkable dividend yield of 21.19%, with the most recent ex-dividend date on October 15, 2024. This aligns with an InvestingPro Tip indicating that BCAT “pays a significant dividend to shareholders,” which may explain its appeal to income-focused investors despite recent stock sales by major stakeholders.

The trust’s market capitalization stands at $1.75 billion, with a price-to-earnings ratio of 8.78, suggesting a potentially undervalued position relative to earnings. This valuation metric, coupled with the InvestingPro Tip that the “stock generally trades with low price volatility,” could provide some context for the recent trading activity.

Interestingly, BCAT has shown positive price performance across various timeframes, with a 31.51% total return over the past year and a 23.64% return year-to-date. These figures indicate strong momentum, which investors might weigh against the reported stock sales.

For readers seeking a deeper understanding of BCAT’s financial profile, InvestingPro offers additional tips and metrics beyond those mentioned here. The platform lists several more insights that could be valuable for investment decision-making in the current market context.

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