On November 1, 2023, Saba Capital Management, L.P. (Trades, Portfolio), a New York-based firm, added 3,300 shares of Pioneer Municipal High Income Trust (MHI, Financial) to its portfolio. The shares were acquired at a trade price of $7.02, bringing the firm's total holdings in MHI to 2,729,985 shares. This transaction represents a 0.12% change in the firm's holdings and a 0.5% position in its portfolio. The firm now holds 11.99% of MHI's total shares.
About Saba Capital Management, L.P. (Trades, Portfolio)
Saba Capital Management, L.P. (Trades, Portfolio) is a firm that specializes in value investing. The firm's portfolio includes 624 stocks, with a total equity of $3.84 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 primary sectors of investment are Financial Services and Technology. 
Overview of Pioneer Municipal High Income Trust
Pioneer Municipal High Income Trust (MHI, Financial) is a diversified, closed-end management investment company based in the USA. The company's business revolves around seeking a high level of current income exempt from regular federal income tax and capital appreciation. It invests in various sectors such as health, education, tobacco, facilities, transportation, utilities, airport, water, and others. As of November 4, 2023, the company's market capitalization stands at $167.142 million, and its current stock price is $7.34. 
Performance Analysis of MHI Stock
Despite a PE percentage of 0.00, indicating the company is at a loss, MHI is significantly undervalued according to the GF-Score. The stock's GF Value is 40.05, and its price to GF Value is 0.18. Since the transaction, the stock has gained 4.56%, but it has lost 51.07% since its IPO and 15.44% year-to-date. The stock's GF Score is 55/100, indicating poor future performance potential.
Financial Health of Pioneer Municipal High Income Trust
MHI's financial health is a mixed bag. The company's Piotroski F-Score is 7, indicating a healthy situation. However, its Altman Z score is 0.00, and its cash to debt rank is 1, both of which are concerning. The company's ROE and ROA are -2.15 and -1.33, respectively, and their ranks are 1099 and 1091. The company has not shown any growth in gross margin, operating margin, revenue, EBITDA, or earnings over the past three years.
Momentum and Predictability of MHI Stock
MHI's stock shows some momentum, with RSI 5 Day, RSI 9 Day, and RSI 14 Day values of 79.73, 65.30, and 55.85, respectively. However, its momentum index 6 - 1 month and momentum index 12 - 1 month are -17.49 and -8.55, respectively. The stock's predictability rank is not available.
Conclusion
In conclusion, Saba Capital Management, L.P. (Trades, Portfolio)'s recent acquisition of MHI shares represents a significant addition to its portfolio. Despite MHI's mixed financial health and poor growth, the stock is significantly undervalued and has shown some momentum. This transaction could potentially offer value investors an opportunity to capitalize on MHI's undervaluation. However, investors should also consider the stock's poor future performance potential and the firm's significant stake in the company.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
