Saba Capital Management, L.P. Boosts Stake in ClearBridge Energy Midstream Opportunity Fund Inc
Saba Capital Management, L.P. (Trades, Portfolio), a prominent investment firm, has recently increased its holdings in ClearBridge Energy Midstream Opportunity Fund Inc (NYSE:EMO). This article will delve into the details of the transaction, provide an overview of both the firm and the traded company, and analyze the potential implications of this move.
Details of the Transaction
The transaction took place on October 12, 2023, with Saba Capital Management, L.P. (Trades, Portfolio) adding 22,077 shares of ClearBridge Energy Midstream Opportunity Fund Inc to its portfolio. The shares were acquired at a price of $31.74 each. This move has increased the firm's total holdings in the traded stock to 2,604,143 shares, representing 20.36% of the company's outstanding shares. The transaction had a 0.02% impact on the firm's portfolio and increased its position in the traded stock to 2.16%.
Profile of Saba Capital Management, L.P. (Trades, Portfolio)
Saba Capital Management, L.P. (Trades, Portfolio), based in New York, is a well-known investment firm with a diverse portfolio. The firm's top holdings include Templeton Global Income Fund(NYSE:GIM), BlackRock Capital Allocation Trust(NYSE:BCAT), BlackRock Health Sciences Trust II(NYSE:BMEZ), BlackRock Innovation & Growth Tr(NYSE:BIGZ), and BlackRock ESG Capital Allocation Trust(NYSE:ECAT). The firm's equity stands at $3.84 billion, with a strong focus on the Financial Services and Technology sectors.
Overview of ClearBridge Energy Midstream Opportunity Fund Inc
ClearBridge Energy Midstream Opportunity Fund Inc (NYSE:EMO) is a non-diversified, closed-end management investment company based in the USA. The company, which operates in a single segment, aims to provide long-term investors with a high level of total return with an emphasis on cash distributions. As of October 17, 2023, the company's market capitalization stands at $416.226 million, with a current stock price of $32.55. The company's GF Score is 40/100, indicating a poor future performance potential.
Analysis of the Traded Stock
ClearBridge Energy Midstream Opportunity Fund Inc's stock has seen a 2.55% gain since the transaction and a 17.98% increase year-to-date. However, the stock has declined by 65.57% since its Initial Public Offering (IPO) in 2011. The company'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 in recent years.
Further Analysis of the Traded Stock
The company's Piotroski F-Score is 4, suggesting average financial health. The Altman Z score and cash to debt ratio are both 0.00, indicating no data available for these metrics. The company's Return on Equity (ROE) and Return on Assets (ROA) are -7.94 and -5.44 respectively, ranking 1326 and 1318 in the industry.
Momentum Analysis of the Traded Stock
The stock's RSI 5 Day, RSI 9 Day, and RSI 14 Day are 13.11, 25.71, and 34.01 respectively. The stock's Momentum Index 6 - 1 Month and Momentum Index 12 - 1 Month are 8.41 and 15.96 respectively. The stock's RSI 14 Day Rank and Momentum Index 6 - 1 Month Rank are 706 and 339 respectively, indicating a strong momentum in the stock.
Conclusion
In conclusion, Saba Capital Management, L.P. (Trades, Portfolio)'s recent acquisition of ClearBridge Energy Midstream Opportunity Fund Inc shares represents a significant addition to its portfolio. Despite the traded company's poor growth and profitability ranks, the firm's investment could be driven by the stock's strong momentum and potential for future returns. However, investors should conduct their own due diligence 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.
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