BNY Mellon Strategic Municipals, Inc. (NYSE:LEO) Sees Significant Growth in Short Interest

Key Points

• Short interest surged 640% from October 15 to October 30, reaching 195,039 shares; however, that represents about 0.3% of shares, with a 0.7-day days-to-cover ratio.
• Insider and institutional investors increased their holdings. Major shareholder Saba Capital bought 12,583 shares, while company insiders purchased 469,425 shares over the last quarter.
• The fund announced a monthly dividend of $0.03 per share, equivalent to $0.36 annually and a 6.0% yield.

BNY Mellon Strategic Municipals, Inc. (NYSE:LEO - Get Free Report) was the target of a significant growth in short interest in October. As of October 30th, there was short interest totaling 195,039 shares, a growth of 640.0% from the October 15th total of 26,356 shares. Approximately 0.3% of the shares of the stock are sold short. Based on an average daily trading volume, of 295,182 shares, the days-to-cover ratio is presently 0.7 days.

Insiders Place Their Bets

In other BNY Mellon Strategic Municipals news, major shareholder Saba Capital Management, L.P. bought 12,583 shares of the firm's stock in a transaction on Monday, October 26th. The shares were purchased at an average price of $5.76 per share, for a total transaction of $72,478.08. Following the completion of the transaction, the insider directly owned 6,559,772 shares in the company, valued at approximately $37,784,286.72. The trade was a 0.19% increase in their position. The transaction was disclosed in a document filed with the SEC, which is available through this link. Insiders bought 469,425 shares of company stock valued at $2,660,103 over the last quarter. Company insiders own 1.00% of the company's stock.

Institutional Trading of BNY Mellon Strategic Municipals

Hedge funds and other institutional investors have recently modified their holdings of the stock. Traub Capital Management LLC increased its holdings in shares of BNY Mellon Strategic Municipals by 29.7% during the third quarter. Traub Capital Management LLC now owns 151,077 shares of the investment management company's stock worth $840,000 after buying an additional 34,639 shares in the last quarter. Riverbridge Partners LLC raised its position in BNY Mellon Strategic Municipals by 22.5% in the third quarter. Riverbridge Partners LLC now owns 169,136 shares of the investment management company's stock valued at $940,000 after purchasing an additional 31,083 shares during the last quarter. Allspring Global Investments Holdings LLC raised its position in BNY Mellon Strategic Municipals by 27.6% in the third quarter. Allspring Global Investments Holdings LLC now owns 673,664 shares of the investment management company's stock valued at $3,746,000 after purchasing an additional 145,918 shares during the last quarter. Integrated Capital Management Inc. boosted its stake in shares of BNY Mellon Strategic Municipals by 14.9% during the third quarter. Integrated Capital Management Inc. now owns 39,810 shares of the investment management company's stock valued at $221,000 after purchasing an additional 5,172 shares in the last quarter. Finally, Venture Visionary Partners LLC bought a new stake in shares of BNY Mellon Strategic Municipals during the third quarter worth about $81,000.

BNY Mellon Strategic Municipals Stock Performance

LEO opened at $5.99 on Wednesday. The company's 50 day moving average is $5.78 and its 200-day moving average is $6.20. BNY Mellon Strategic Municipals has a 1-year low of $5.41 and a 1-year high of $6.55.

BNY Mellon Strategic Municipals Announces Dividend

The business also recently announced a monthly dividend, which will be paid on Tuesday, December 1st. Shareholders of record on Friday, November 13th will be given a $0.03 dividend. The ex-dividend date is Friday, November 13th. This represents a $0.36 dividend on an annualized basis and a yield of 6.0%.

About BNY Mellon Strategic Municipals

BNY Mellon Strategic Municipals, Inc. NYSE: LEO is a closed-end management investment company that seeks to provide a high level of current income exempt from regular U.S. federal income tax. The fund invests primarily in municipal obligations issued by states, municipalities, and other public authorities. Its portfolio may include general obligation bonds, revenue bonds, and other tax-exempt municipal securities. By investing in debt issued across the United States, the fund provides exposure to the municipal bond market rather than operating a conventional commercial business or selling products and services directly to consumers.

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