Saba Capital Management, L.P. Increases Stake in BlackRock Health Sciences Trust II
On November 6, 2023, Saba Capital Management, L.P. (Trades, Portfolio) added 351,631 shares of BlackRock Health Sciences Trust II (NYSE:BMEZ), increasing its total holdings to 12,119,108 shares. The transaction, executed at a price of $13.77 per share, had a 0.13% impact on the firm's portfolio. The firm now holds a 4.35% position in its portfolio and 11.22% of the total shares of BMEZ. This transaction signifies a significant addition to the firm's portfolio, demonstrating its confidence in the future performance of BMEZ.
Profile of Saba Capital Management, L.P. (Trades, Portfolio)
Saba Capital Management, L.P. (Trades, Portfolio), a New York-based investment firm, manages a portfolio of 624 stocks with a total equity of $3.84 billion. 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 investment philosophy is primarily focused on the Financial Services and Technology sectors. Saba Capital Management, L.P. (Trades, Portfolio) is a significant player in the investment landscape, with its decisions often influencing market trends.
Overview of BlackRock Health Sciences Trust II
BlackRock Health Sciences Trust II (NYSE:BMEZ) is a US-based closed-end management investment company. The company's objective is to provide total return through a combination of current income and long-term capital appreciation. BMEZ achieves this by investing at least 80% of its total assets in equity securities of energy and natural resources companies and equity derivatives with exposure to the energy and natural resources industry. The company operates in a single segment and has a market capitalization of $1.49 billion. As of November 7, 2023, the stock is trading at $13.75 with a PE percentage of 28.12. However, due to insufficient data, the GF valuation and GF value cannot be evaluated.
Analysis of the Stock's Performance
Since its IPO, BMEZ has experienced a price change of -31.28%. The year-to-date price change ratio stands at -12.36%. The stock's GF Score is 39/100, indicating a poor future performance potential. The stock's Financial Strength is ranked 8/10, while its Profitability Rank is 1/10. The Growth Rank and GF Value Rank are both 0/10, indicating a lack of growth and value. The stock's Momentum Rank is 5/10, suggesting a moderate momentum. The Piotroski F-Score is 2, and the Altman Z score is 0.00, both indicating potential financial instability.
Examination of the Stock's Financials
BMEZ's cash to debt rank is 1, indicating a high level of debt compared to cash. The company's ROE and ROA are 9.36 and 9.12, respectively. However, the company's gross margin growth, operating margin growth, 3-year revenue growth, EBITDA growth, and earning growth over the past 3 years are all 0.00, indicating no growth in these areas. The predictability rank is not available, suggesting that the company's future performance is uncertain.
Analysis of the Stock's Momentum
The stock's RSI 5 day, RSI 9 day, and RSI 14 day are 72.73, 57.21, and 48.98, respectively. The momentum index 6 - 1 month and momentum index 12 - 1 month are -14.26 and -7.80, respectively. The RSI 14 day rank is 747, and the momentum index 6 - 1 month rank is 1346. These momentum indicators suggest a potential downward trend in the stock's future performance.
Conclusion
In conclusion, Saba Capital Management, L.P. (Trades, Portfolio)'s recent acquisition of BMEZ shares signifies a significant addition to its portfolio. Despite BMEZ's poor growth and value ranks, the firm's decision to increase its stake suggests confidence in the stock's future performance. For value investors, keeping an eye on the actions of market gurus like Saba Capital Management, L.P. (Trades, Portfolio) can provide valuable insights into potential investment opportunities.
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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