On July 5, 2023, Saba Capital Management, L.P. (Trades, Portfolio), a renowned investment firm, added 2,271,191 shares of ClearBridge Energy Midstream Opportunity Fund Inc (EMO, Financial) to its portfolio. This article provides an in-depth analysis of this transaction, the guru's profile, and the traded stock's basic information.
Details of the Transaction
The transaction took place on July 5, 2023, with Saba Capital Management, L.P. (Trades, Portfolio) adding 5,601 shares of ClearBridge Energy Midstream Opportunity Fund Inc. The trade was executed at a price of $29.93 per share. This acquisition has increased the guru's total holdings in the traded stock to 2,271,191 shares, representing 17.76% of the guru's portfolio and making it a significant position.
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. 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: ClearBridge Energy Midstream Opportunity Fund Inc
ClearBridge Energy Midstream Opportunity Fund Inc (EMO, Financial), a US-based company, made its Initial Public Offering (IPO) on June 10, 2011. The company operates as a non-diversified, closed-end management investment company, aiming to provide long-term investors with a high level of total return with an emphasis on cash distributions. As of July 10, 2023, the company's market capitalization stands at $383.684 million, with a stock price of $30.01 and a PE percentage of 2.67.
Analysis of the Traded Stock
Due to insufficient data, the GF Valuation and GF Value of the stock cannot be evaluated. Since its IPO, the stock has seen a price change of -68.26%. However, the year-to-date price change ratio stands at 8.77%. The stock's GF Score is 35, indicating poor future performance potential.
Performance and Ranking of the Traded Stock
The stock's rank in terms of balance sheet, profitability, and growth is 3, 1, and 0 respectively. The stock's F Score is 4, and its Z Score is 0.00, indicating potential financial distress. The stock's momentum rank is 10, suggesting strong momentum.
Financial Health of the Traded Stock
The stock's cash to debt ratio is 0.00, indicating potential liquidity issues. However, the stock's ROE and ROA are 34.07 and 23.49 respectively, ranking 81 and 69 in these categories. The stock's gross margin growth and operating margin growth are both 0.00.
Momentum and Predictability of the Traded Stock
The stock's RSI 5 Day, RSI 9 Day, and RSI 14 Day are 52.10, 55.21, and 55.49 respectively. The stock's Momentum Index 6 - 1 Month and Momentum Index 12 - 1 Month are 1.46 and 21.24 respectively. The stock's rank in terms of RSI 14 Day and Momentum Index 6 - 1 Month are 1300 and 526 respectively.
In conclusion, Saba Capital Management, L.P. (Trades, Portfolio)'s recent acquisition of ClearBridge Energy Midstream Opportunity Fund Inc shares is a significant addition to its portfolio. Despite the stock's poor GF Score and potential financial distress, its strong momentum and high ROE and ROA may offer potential returns for the guru.
