Saba Capital Management, L.P. Acquires Stake in PIMCO Energy & Tactical Credit Opportunities
On July 26, 2023, Saba Capital Management, L.P. (Trades, Portfolio), a renowned investment firm, added 44,028 shares of PIMCO Energy & Tactical Credit Opportunities (NYSE:NRGX) to its portfolio. This article provides an in-depth analysis of this transaction, the profiles of the guru and the traded company, and the performance and valuation of the traded stock.
Details of the Transaction
The transaction took place on July 26, 2023, with Saba Capital Management, L.P. (Trades, Portfolio) adding 44,028 shares of NRGX to its portfolio. The trade was executed at a price of $16.46 per share, resulting in a 0.78% change in the trade. This transaction had a 0.01% impact on the trade and increased the firm's total holdings in NRGX to 5,683,006 shares, representing 1.79% of the firm's portfolio and 12.71% of NRGX's total shares.
Profile of the Guru: Saba Capital Management, L.P. (Trades, Portfolio)
Saba Capital Management, L.P. (Trades, Portfolio) is a New York-based investment firm with a focus on 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 $5.24 billion, spread across 762 stocks.
Overview of the Traded Stock: 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 July 27, 2023, the company's market cap stands at $733.639 million, and its current stock price is $16.41.
Performance and Valuation of the Traded Stock
NRGX has a PE Percentage of 4.87, indicating its profitability. However, due to insufficient data, the GF Valuation cannot be evaluated. The stock's GF Score is 40/100, suggesting a moderate future performance potential. The stock's Balance Sheet Rank, Profitability Rank, and Growth Rank are 4/10, 2/10, and 0/10, respectively.
Momentum and Predictability of the Traded Stock
NRGX has a Momentum Rank of 10/10, indicating strong momentum. The stock's F Score is 2, suggesting poor financial health. The stock's RSI 5 Day, RSI 9 Day, and RSI 14 Day are 88.34, 78.99, and 73.03, respectively, indicating overbought conditions.
Conclusion
In conclusion, Saba Capital Management, L.P. (Trades, Portfolio)'s acquisition of NRGX shares could be a strategic move considering the stock's strong momentum. However, the stock's moderate GF Score and low F Score suggest potential risks. Investors should closely monitor the stock's performance and the firm's future transactions.
This article first appeared on GuruFocus.
