Saba Capital Management, L.P. Acquires Stake in PIMCO Energy & Tactical Credit Opportunities
On September 29, 2023, Saba Capital Management, L.P. (Trades, Portfolio), a New York-based investment firm, added 6,887,083 shares of PIMCO Energy & Tactical Credit Opportunities (NYSE:NRGX) to its portfolio. 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 acquisition.
Details of the Transaction
The transaction took place on September 29, 2023, with Saba Capital Management, L.P. (Trades, Portfolio) adding 130,725 shares of NRGX to its portfolio at a traded price of $19.79 per share. This addition had an impact of 0.07 on the firm's portfolio, bringing the total shares held in NRGX to 6,887,083. The traded stock now represents 3.55% of the guru's portfolio, with the firm holding a 15.40% stake in NRGX.
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 an investment firm with a diverse portfolio of 624 stocks. 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 total equity stands at $3.84 billion, with a strong focus on the Financial Services and Technology sectors.
Overview of PIMCO Energy & Tactical Credit Opportunities
PIMCO Energy & Tactical Credit Opportunities (NYSE:NRGX) is a non-diversified, limited term closed-end management investment company based in the USA. The company's primary objective is to seek total return, with a secondary objective to provide high current income. As of October 2, 2023, the company has a market capitalization of $847.202 million.
Performance of PIMCO Energy & Tactical Credit Opportunities
As of October 2, 2023, NRGX's stock price stands at $18.9501, with a PE Percentage of 4.59. The stock has seen a year-to-date price change ratio of 29.8. According to the GF Score, NRGX has a score of 39/100, indicating a poor future performance potential. The company's Financial Strength is ranked 4/10, while its Profitability Rank is 2/10. The company's Growth Rank is 0/10, indicating no growth data available.
Financial Health of PIMCO Energy & Tactical Credit Opportunities
NRGX has a Piotroski F-Score of 7, indicating a healthy financial situation. However, its Altman Z score is 0.00, and its Cash to Debt ratio is 0.01, suggesting potential financial distress. The company's Return on Equity (ROE) is 24.02, and its Return on Assets (ROA) is 17.98.
Conclusion
In conclusion, Saba Capital Management, L.P. (Trades, Portfolio)'s recent acquisition of NRGX shares could potentially diversify its portfolio and yield significant returns, given NRGX's primary objective of total return. However, the company's low GF Score and financial health indicators suggest potential risks. Investors should closely monitor NRGX's performance and financial health in the coming months.
This article first appeared on GuruFocus.
