Mfs Muni Inc Tr (NYSE:MFM) Share Price Passes Below 50-Day Moving Average - Should You Sell?

Key Points

• Price dipped below 50‑day MA: MFS Municipal Income Trust's shares briefly fell below its 50‑day moving average of $5.49, trading as low as $5.47 (last trade $5.49) with a 200‑day MA of $5.40 and volume of 22,421 shares.
• Dividend announced: the fund declared a monthly dividend of $0.024 payable March 31 (record/ex‑dividend date March 17), implying an annualized yield of about 5.2%.
• Institutional buying and fund strategy: several institutional investors increased their stakes recently, and the closed‑end trust primarily holds tax‑exempt municipal bonds (at least 80% investment‑grade) with up to 20% in lower‑rated or unrated securities.

Mfs Muni Inc Tr (NYSE:MFM - Get Free Report)'s share price passed below its 50-day moving average during trading on Tuesday . The stock has a 50-day moving average of $5.49 and traded as low as $5.47. Mfs Muni Inc Tr shares last traded at $5.49, with a volume of 22,421 shares.

Mfs Muni Inc Tr Stock Up 0.4%

The firm's 50 day moving average is $5.49 and its 200 day moving average is $5.40.

Mfs Muni Inc Tr Announces Dividend

The company also recently disclosed a monthly dividend, which will be paid on Tuesday, March 31st. Shareholders of record on Tuesday, March 17th will be given a $0.024 dividend. The ex-dividend date is Tuesday, March 17th. This represents a c) dividend on an annualized basis and a dividend yield of 5.2%.

Institutional Trading of Mfs Muni Inc Tr

Institutional investors have recently modified their holdings of the company. Thomas J. Herzfeld Advisors Inc. grew its stake in shares of Mfs Muni Inc Tr by 1.5% in the fourth quarter. Thomas J. Herzfeld Advisors Inc. now owns 137,475 shares of the closed-end fund's stock worth $746,000 after purchasing an additional 2,078 shares during the last quarter. Baird Financial Group Inc. raised its position in Mfs Muni Inc Tr by 14.5% during the 2nd quarter. Baird Financial Group Inc. now owns 23,676 shares of the closed-end fund's stock valued at $122,000 after purchasing an additional 3,000 shares during the last quarter. HighTower Advisors LLC lifted its holdings in Mfs Muni Inc Tr by 17.2% in the 4th quarter. HighTower Advisors LLC now owns 32,427 shares of the closed-end fund's stock worth $176,000 after buying an additional 4,759 shares during the period. Wells Fargo & Company MN lifted its holdings in Mfs Muni Inc Tr by 6.9% in the 4th quarter. Wells Fargo & Company MN now owns 100,222 shares of the closed-end fund's stock worth $544,000 after buying an additional 6,486 shares during the period. Finally, Garton & Associates Financial Advisors LLC bought a new stake in shares of Mfs Muni Inc Tr in the 4th quarter worth approximately $37,000.

About Mfs Muni Inc Tr

MFS Municipal Income Trust NYSE: MFM is a closed-end management investment company that seeks to provide shareholders with a high level of income exempt from federal income tax. The trust primarily invests in a diversified portfolio of municipal securities, including both general obligation and revenue bonds issued by U.S. states, territories and municipalities. Its shares trade on the New York Stock Exchange, offering investors access to a professionally managed municipal bond portfolio within a single, publicly traded vehicle.

At least 80% of the trust's total assets are allocated to investment-grade municipal debt, with the flexibility to invest up to 20% in non-investment grade or unrated securities when market conditions warrant.

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