On July 26, 2023, Saba Capital Management, L.P. (Trades, Portfolio), a renowned investment firm, added 1,610,875 shares of ClearBridge MLP & Midstream Fund Inc. (CEM, Financial) to its portfolio. This article provides an in-depth analysis of this transaction, the profiles of the guru and the traded company, and the potential implications of this trade.
Details of the Transaction
The transaction took place on July 26, 2023, with Saba Capital Management, L.P. (Trades, Portfolio) adding 11,885 shares of ClearBridge MLP & Midstream Fund Inc. to its portfolio. The shares were acquired at a price of $36.59 each, resulting in a 0.74% change in the firm's holdings. This trade had a 0.01% impact on the firm's portfolio, bringing its total holdings in ClearBridge MLP & Midstream Fund Inc. to 1,610,875 shares, which represents 1.13% of its portfolio and 12.09% of the traded company's stock.
Profile of the Guru: 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 prominent investment firm with a diverse portfolio of 762 stocks. The firm's 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). With an equity of $5.24 billion, the firm primarily invests in the Financial Services and Technology sectors.
Overview of the Traded Stock: ClearBridge MLP & Midstream Fund Inc.
ClearBridge MLP & Midstream Fund Inc. (CEM, Financial), a non-diversified, closed-end management investment company based in the USA, primarily invests in energy master limited partnerships (MLPs) and energy midstream entities. The company, which operates in a single segment, has a market capitalization of $484.856 million and a current stock price of $36.4. The company's PE percentage stands at 2.68, indicating its profitability.
Analysis of the Traded Stock's Performance
Since its IPO on June 25, 2010, ClearBridge MLP & Midstream Fund Inc.'s stock has depreciated by 63.6%. However, the stock has gained 12.66% year-to-date. The stock's GF Score is 40/100, indicating poor future performance potential. The stock's Balance Sheet Rank, Profitability Rank, and Growth Rank are 4/10, 2/10, and 0/10, respectively. The stock's Momentum Rank is 8/10, suggesting a strong momentum.
Evaluation of the Traded Stock's Financial Health
ClearBridge MLP & Midstream Fund Inc. has an F Score of 4 and a Z Score of 0.00, indicating potential financial distress. The company's Cash to Debt ratio is 0.00, suggesting a high level of debt. The company operates in the Asset Management industry and has an ROE of 35.02 and an ROA of 24.40, ranking 77th and 68th, respectively.
Analysis of the Traded Stock's Growth
ClearBridge MLP & Midstream Fund Inc. has not shown significant growth in the past three years, with its Gross Margin Growth, Operating Margin Growth, and 3-year growth in revenue, EBITDA, and earnings all standing at 0.00.
Conclusion
In conclusion, Saba Capital Management, L.P. (Trades, Portfolio)'s recent acquisition of shares in ClearBridge MLP & Midstream Fund Inc. represents a strategic move to diversify its portfolio. Despite the traded company's lackluster growth and financial health, its strong momentum and the guru's significant holdings in the company suggest potential future gains. However, investors should exercise caution due to the stock's poor GF Score and high debt levels.
