Saba Capital Management, L.P. Acquires Shares in DWS Strategic Municipal Income Trust
On August 31, 2023, Saba Capital Management, L.P., a New York-based investment firm, added 10,369 shares of DWS Strategic Municipal Income Trust (NYSE:KSM) to its portfolio. The shares were acquired at a price of $8.13 per share, bringing the firm's total holdings in KSM to 1,195,188 shares. This transaction represents a 0.25% position in the firm's portfolio and a 10.78% stake in KSM.
About Saba Capital Management, L.P.
Saba Capital Management, L.P. is a prominent investment firm located at 405 Lexington Avenue, New York. The firm's portfolio comprises 624 stocks, with a total equity of $3.84 billion. Its 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 primary investment sectors are Financial Services and Technology.
Overview of DWS Strategic Municipal Income Trust
DWS Strategic Municipal Income Trust (NYSE:KSM) is a closed-end, diversified management investment company based in the USA. The company's investment objective is to provide a high level of current income exempt from federal income tax. It achieves this by investing in a portfolio of tax-exempt municipal securities. The company's products include ETFs, Mutual Funds, Closed-End-Funds, Money Market Funds, and others. As of September 1, 2023, the company's market capitalization stands at $90.465 million, with a current stock price of $8.16.
Financial Performance of DWS Strategic Municipal Income Trust
As of the date of this article, DWS Strategic Municipal Income Trust has a GF Score of 39/100, indicating a poor future performance potential. 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 a lack of growth. The company's stock has gained 0.37% since the transaction, while the year-to-date price change ratio is -0.12.
Future Performance Potential of DWS Strategic Municipal Income Trust
Based on the company's GF Value Rank of 0/10 and Momentum Rank of 7/10, the future performance potential of DWS Strategic Municipal Income Trust appears to be limited. The company's Piotroski F-Score is 4, indicating a poor financial situation. The company's Altman Z score is 0.00, suggesting potential financial distress. The company's cash to debt ratio is 0.00, indicating a lack of liquidity. The company operates in the Asset Management industry.
Growth and Momentum of DWS Strategic Municipal Income Trust
DWS Strategic Municipal Income Trust has shown no growth in gross margin, operating margin, or three-year revenue, EBITDA, and earning growth. The company's predictability rank is not available. The company's RSI 5 Day is 57.96, RSI 9 Day is 46.54, and RSI 14 Day is 42.57. The company's Momentum Index 6 - 1 Month is 2.45, and Momentum Index 12 - 1 Month is -5.39.
Conclusion
In conclusion, Saba Capital Management, L.P.'s acquisition of shares in DWS Strategic Municipal Income Trust represents a significant addition to its portfolio. However, given the company's poor financial performance and limited growth potential, the impact of this transaction on the firm's portfolio and the stock's future performance remains to be seen.
This article first appeared on GuruFocus.
