Saba Capital management sells shares in Eaton Vance California trust

In a recent transaction, Saba Capital Management, L.P., a ten percent owner in Eaton (NYSE:ETN ) Vance California Municipal Income Trust (NYSE:CEV), has sold a significant number of shares in the company. The transaction, which took place on September 19, 2024, involved the sale of 31,052 shares at a price of $10.87 per share, totaling approximately $337,535.

This sale has adjusted Saba Capital Management's holdings in the trust, leaving them with 851,625 shares following the transaction. It's worth noting that the shares were held indirectly by the firm, which indicates that the shares may be owned through a related entity or investment vehicle.

The transaction was disclosed in a regulatory filing with the Securities and Exchange Commission (SEC) on September 23, 2024. Saba Capital Management is known for its role as an investment manager, and transactions of this nature are closely watched by investors seeking insights into the actions of significant shareholders.

Eaton Vance California Municipal Income Trust, with its trading symbol CEV, is a financial entity that focuses on investments in the municipal bond market of California. The sale by Saba Capital Management may be of interest to investors in the trust or those considering the municipal bond market as part of their investment strategy.

The trust's shares are traded on the New York Stock Exchange, and the sale by Saba Capital Management represents a change in the investment firm's position with respect to the trust. As with any transaction of this kind, market participants may look to such sales for indications of investment managers' perspectives on the assets in question.

Investors and market analysts often monitor filings like these to understand the behavior of major shareholders and to gain insight into the potential future performance of a trust or company. The sale by Saba Capital Management is a notable event for those following Eaton Vance California Municipal Income Trust.InvestingPro Insights


As investors assess the implications of Saba Capital Management's recent share sale in Eaton Vance California Municipal Income Trust (NYSE:CEV), several key metrics from InvestingPro provide a deeper understanding of the trust's financial health and performance. Notably, CEV has exhibited low price volatility, which may appeal to investors seeking stability in their portfolio.

Despite this stability, the trust's valuation suggests a poor free cash flow yield according to one of the InvestingPro Tips, which could be a point of consideration for those looking at the long-term income potential of their investments. Additionally, the trust's commitment to shareholder returns is underscored by its track record of maintaining dividend payments for 26 consecutive years, a testament to its financial resilience and management's confidence in its operations.

From a financial perspective, CEV reported revenue of $4.96 million over the last twelve months as of Q2 2024, with a gross profit margin standing at an impressive 100%. However, investors should note the revenue decline of 7.02% during the same period, which may reflect challenges in the municipal bond market or other factors affecting the trust's performance. The dividend yield as of September 2024 is substantial at 5.52%, which could be attractive for income-focused investors, especially when considering the trust's profitability over the last twelve months.

For those interested in exploring further, InvestingPro offers additional tips on Eaton Vance California Municipal Income Trust, which can be found at https://www.investing.com/pro/CEV.

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Source: Investing.com