In a recent transaction, Saba Capital Management, L.P. (Trades, Portfolio), a prominent investment firm, has increased its stake in Nuveen Pennsylvania Quality Municipal Income Fund (NQP, Financial). This article will delve into the details of the transaction, provide an overview of the guru and the traded company, and analyze the potential implications of this move.
About 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 well-known investment firm with a diverse portfolio. The firm currently holds 762 stocks, with a total equity of $5.24 billion. Its top holdings include Templeton Global Income Fund (GIM, Financial), BlackRock Capital Allocation Trust (BCAT, Financial), BlackRock Health Sciences Trust II (BMEZ, Financial), BlackRock Innovation & Growth Tr (BIGZ, Financial), and BlackRock ESG Capital Allocation Trust (ECAT, Financial). The firm's portfolio is heavily concentrated in the Financial Services and Technology sectors.
Transaction Details
The transaction took place on July 17, 2023, with Saba Capital Management, L.P. (Trades, Portfolio) adding 413,888 shares of Nuveen Pennsylvania Quality Municipal Income Fund to its portfolio. The shares were purchased at a price of $11.28 each, bringing the total number of shares held by the guru to 2,698,891. This transaction represents an 18.11% change in the guru's holdings and has a 0.09% impact on their portfolio. The current position of the traded stock in the guru's portfolio is 0.58%, and the guru's holdings represent 7.22% of the traded stock.
Nuveen Pennsylvania Quality Municipal Income Fund Profile
Nuveen Pennsylvania Quality Municipal Income Fund, symbol NQP, is a diversified closed-end management investment company based in the USA. The company's primary objective is to provide current income exempt from regular federal and Pennsylvania income taxes. It aims to enhance portfolio value relative to the Pennsylvania municipal bond market by investing in tax-exempt Pennsylvania municipal bonds that are underrated or undervalued. The company operates in a single segment and has a market capitalization of $423.927 million. The current stock price is $11.34.
Stock Performance and Valuation
Since the transaction, the stock has gained 0.53%, and the year-to-date price change ratio is 0.98. However, the GF Score, which is closely correlated to the long-term performances of stocks, is 39, indicating poor future performance potential. The stock's PE percentage is not applicable, and due to insufficient data, the GF Valuation cannot be evaluated.
Stock Financial Health and Profitability
The stock's financial health is reflected in its rank balance sheet score of 7 and a cash to debt ratio of 10,000, which ranks first. However, the Z score is not applicable due to insufficient data. The stock's profitability is indicated by its ROE of -12.31 and ROA of -7.50, ranking 1218 and 1154 respectively. The gross margin growth and operating margin growth are also not applicable due to insufficient data.
Stock Growth and Momentum
The stock's growth is reflected in its rank growth score of 0, indicating no growth. The revenue growth, EBITDA growth, and earning growth over the past three years are also not applicable due to insufficient data. The stock's momentum is indicated by its RSI 5 day of 62.98, RSI 9 day of 59.47, and RSI 14 day of 57.33. The momentum index 6 - 1 month is -5.55, and the momentum index 12 - 1 month is -8.40.
Conclusion
In conclusion, Saba Capital Management, L.P. (Trades, Portfolio)'s recent acquisition of shares in Nuveen Pennsylvania Quality Municipal Income Fund represents a significant addition to its portfolio. However, the stock's performance and financial health indicators suggest that it may not yield high returns in the future. Investors should carefully consider these factors before making investment decisions.
