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Saba Capital buys BlackRock ESG trust shares worth over $5.4 million

Published 04/01/2024, 08:49 AM

Saba Capital Management, L.P., a significant shareholder in BlackRock (NYSE:BLK) ESG Capital Allocation Term Trust (NYSE:ECAT), has made substantial purchases of the trust's common stock, according to recent filings with the Securities and Exchange Commission. The investment firm acquired a total of 314,036 shares across two separate transactions on March 27 and March 28, 2024, with a combined value exceeding $5.4 million.

The March 27 purchase involved 110,651 shares at a price of $17.23 per share, while the subsequent transaction on March 28 saw Saba Capital acquiring an additional 203,385 shares at a slightly higher price of $17.37 each. These transactions have increased Saba Capital's holdings to a significant 28,496,747 shares of BlackRock ESG Capital Allocation Term Trust.

The trust, which operates under the trading symbol NYSE:ECAT, is part of BlackRock's suite of sustainable investment products, focusing on environmental, social, and governance (ESG) criteria. The recent acquisitions by Saba Capital highlight a noteworthy investment within the ESG space, reflecting a growing interest in sustainable investment strategies among institutional investors.

Investors often monitor such filings to gauge insider sentiment and investment trends, with substantial purchases typically seen as a sign of confidence in the issuer's future prospects. The filings were signed by William Manzolillo and Boaz Weinstein on April 1, 2024, confirming the accuracy and timeliness of the reported transactions.

InvestingPro Insights

In light of Saba Capital Management's increased stake in BlackRock ESG Capital Allocation Term Trust (NYSE:ECAT), investors may find the following InvestingPro data and tips particularly enlightening. With a market capitalization of $1.77 billion, ECAT is a significant player in the sustainable investment product space. The trust has a notable dividend yield of 10.37%, as of the last recorded ex-date on March 14, 2024, rewarding shareholders with substantial income.

From an investment standpoint, ECAT's stock is characterized by low price volatility, an attribute that might appeal to investors seeking stability in their portfolio. Moreover, the trust's commitment to increasing shareholder value is evidenced by its history of raising its dividend for three consecutive years, a trend that aligns with the substantial purchases made by Saba Capital. However, it's worth noting that ECAT is currently trading near its 52-week high, at 99.76% of the peak price, and the previous close was at $17.3.

For investors looking for more comprehensive analysis, there are additional InvestingPro Tips available, including insights on ECAT's gross profit margins and free cash flow yield. In total, there are five more tips that can be accessed, offering a deeper dive into ECAT's financial health and market performance. Interested investors can take advantage of these insights by using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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