On August 1, 2023, Saba Capital Management, L.P. (Trades, Portfolio), a prominent investment firm, added 304,478 shares of Eaton Vance California Municipal Bond Fund (EVM, 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 performance and valuation of the traded stock.
Details of the Transaction
The transaction took place on August 1, 2023, with Saba Capital Management, L.P. (Trades, Portfolio) adding 304,478 shares of EVM to its portfolio. The trade was executed at a price of $8.91 per share, resulting in a 14.05% change in shares. This transaction had a 0.05% impact on the guru's portfolio. Following this trade, Saba Capital Management, L.P. (Trades, Portfolio) now holds 2,470,884 shares of EVM, representing 0.42% of its portfolio and 10.01% of the guru's holdings in the traded 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 renowned investment firm with a 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). The firm's equity stands at $5.24 billion, with a strong focus on the Financial Services and Technology sectors.
Overview of the Traded Stock: Eaton Vance California Municipal Bond Fund
Eaton Vance California Municipal Bond Fund (EVM, Financial), based in the USA, is an investment company that went public on August 28, 2002. The company aims to provide current income exempt from regular federal income tax, including alternative minimum tax, and, in state-specific funds, taxes in its specified state. It offers a range of equity, income, and alternative strategies to various investors, including individuals, institutions, high net worth individuals, family office investors, and financial professionals. The company operates as a single segment and has a market capitalization of $638.175 million. The current price of the stock is $8.94, with a PE percentage of 0.00, indicating that the company is at a loss.
Analysis of the Traded Stock's Performance and Valuation
Due to insufficient data, the GF Valuation and GF Value of EVM cannot be evaluated. The stock has seen a price change of 0.34% since the transaction and a -40.4% change since its Initial Public Offering (IPO). The year-to-date price change ratio stands at 2.11%. The GF Score of EVM is 39/100, indicating poor future performance potential.
Evaluation of the Traded Stock's Financial Health and Future Performance Potential
EVM has a Balance Sheet Rank of 5/10, a Profitability Rank of 3/10, and a Growth Rank of 0/10. The Piotroski F-Score is 4, and the Altman Z score is 0.00, indicating financial instability. The company's cash to debt ratio is also 0.00, further highlighting its financial challenges.
Analysis of the Traded Stock's Industry Performance and Key Ratios
EVM operates in the Asset Management industry. The company's ROE is -4.03, and its ROA is -2.30. The company's gross margin growth, operating margin growth, and 3-year revenue, EBITDA, and earning growth are all 0.00, indicating no growth in these areas.
Assessment of the Traded Stock's Momentum and Predictability
The RSI 5 Day, RSI 9 Day, and RSI 14 Day of EVM are 36.89, 43.71, and 47.21, respectively. The Momentum Index 6 - 1 Month and 12 - 1 Month are -4.40 and -8.06, respectively. The stock's predictability rank is not available.
In conclusion, this transaction by Saba Capital Management, L.P. (Trades, Portfolio) has increased its stake in EVM, despite the stock's poor performance and financial instability. This move could potentially impact the guru's portfolio, depending on the future performance of EVM.
