Saba Capital Management, L.P. Boosts Stake in PIMCO Energy & Tactical Credit Opportunities
On October 26, 2023, Saba Capital Management, L.P. (Trades, Portfolio), a New York-based investment firm, significantly increased its holdings in PIMCO Energy & Tactical Credit Opportunities (NYSE:NRGX). This article provides an in-depth analysis of the transaction, the profiles of both the guru and the traded company, and the potential implications of this move on the market.
Details of the Transaction
Saba Capital Management, L.P. (Trades, Portfolio) added 4,300 shares of NRGX to its portfolio, bringing its total holdings to 7,034,522 shares. The transaction was executed at a price of $18.87 per share. This move has increased the firm's position in NRGX to 3.46% of its portfolio and represents 15.73% of NRGX'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 firm that manages a portfolio of 624 stocks, primarily in the Financial Services and Technology sectors. 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.
Overview of PIMCO Energy & Tactical Credit Opportunities
PIMCO Energy & Tactical Credit Opportunities is a non-diversified, limited term closed-end management investment company based in the USA. The company operates in a single segment and has a market capitalization of $837.809 million. The stock is currently trading at $18.74, with a PE percentage of 4.54. The year-to-date price change ratio stands at 28.36%.
Analysis of the Traded Stock
The stock's GF Score is 40/100, indicating a poor future performance potential. The Balance Sheet Rank is 4/10, the Profitability Rank is 2/10, and the Growth Rank is 0/10. The stock's F Score is 7, indicating a healthy financial situation, but its Z Score is 0.00, suggesting potential financial distress.
Industry Context
NRGX operates in the Asset Management industry. The company's ROE and ROA are 24.02 and 17.98, respectively, ranking 130th and 118th in the industry. However, the company's Cash to Debt ratio is 0.01, ranking 1408th, indicating a high level of debt relative to cash.
Stock Momentum and Predictability
The stock's RSI 5 Day, RSI 9 Day, and RSI 14 Day are 31.50, 45.19, and 51.11, respectively. The Momentum Index 6 - 1 Month and Momentum Index 12 - 1 Month are 33.99 and 26.55, respectively. However, the stock's predictability rank is not available, indicating that its future price movement is unpredictable.
Conclusion
In conclusion, Saba Capital Management, L.P. (Trades, Portfolio)'s recent acquisition of NRGX shares represents a significant addition to its portfolio. Despite the stock's poor GF Score and high debt level, the firm's investment could potentially yield returns given NRGX's strong position in the Asset Management industry. However, the stock's unpredictable future price movement warrants careful monitoring. As always, investors are advised to conduct their own 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.
This article first appeared on GuruFocus.
