Gabelli Convertible & Income Securities Fund Inc. (NYSE:GCV) Sees Large Drop in Short Interest

Key Points

• Short interest in GCV fell 56.6% to 18,465 shares as of August 14, representing about 0.1% of shares outstanding and only 0.4 days to cover.
• The fund’s shares were unchanged at $4.59, within a 12-month range of $3.98 to $4.80, while trading volume remained below average.
• GCV declared a quarterly dividend of $0.12 per share, equivalent to $0.48 annually and a 10.5% yield; institutional investors own 23.4% of the fund.

Gabelli Convertible & Income Securities Fund Inc. (NYSE:GCV - Get Free Report) was the recipient of a large decrease in short interest during the month of August. As of August 14th, there was short interest totaling 18,465 shares, a decrease of 56.6% from the July 30th total of 42,573 shares. Approximately 0.1% of the shares of the stock are sold short. Based on an average trading volume of 49,755 shares, the days-to-cover ratio is presently 0.4 days.

Gabelli Convertible & Income Securities Fund Stock Performance

GCV remained flat at $4.59 during trading hours on Friday. 21,988 shares of the company traded hands, compared to its average volume of 41,596. The firm has a 50 day moving average of $4.63 and a 200-day moving average of $4.54. Gabelli Convertible & Income Securities Fund has a 12 month low of $3.98 and a 12 month high of $4.80.

Gabelli Convertible & Income Securities Fund Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, September 23rd. Investors of record on Wednesday, September 16th will be issued a $0.12 dividend. The ex-dividend date is Wednesday, September 16th. This represents a $0.48 dividend on an annualized basis and a dividend yield of 10.5%.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in GCV. Integrity Advisory Solutions LLC purchased a new stake in Gabelli Convertible & Income Securities Fund during the fourth quarter valued at approximately $48,000. Bank of America Corp DE purchased a new position in Gabelli Convertible & Income Securities Fund in the second quarter worth $131,000. Citadel Advisors LLC grew its holdings in Gabelli Convertible & Income Securities Fund by 44.6% in the third quarter. Citadel Advisors LLC now owns 30,828 shares of the investment management company's stock worth $127,000 after purchasing an additional 9,506 shares during the last quarter. Benjamin Edwards Inc. increased its position in shares of Gabelli Convertible & Income Securities Fund by 8.5% during the second quarter. Benjamin Edwards Inc. now owns 37,039 shares of the investment management company's stock worth $173,000 after purchasing an additional 2,907 shares in the last quarter. Finally, Susquehanna International Group LLP acquired a new position in shares of Gabelli Convertible & Income Securities Fund during the third quarter worth $186,000. Hedge funds and other institutional investors own 23.40% of the company's stock.

About Gabelli Convertible & Income Securities Fund

Gabelli Convertible & Income Securities Fund NYSE: GCV is a closed-end management investment company that seeks to provide current income and capital appreciation by investing primarily in convertible securities and other fixed-income instruments. The fund's portfolio typically includes convertible corporate bonds, preferred stocks, and equities of companies that offer the potential for both income generation and price appreciation through embedded option features.

The fund pursues a strategy that combines credit analysis with equity valuation to identify convertible securities that offer attractive yields relative to their risk profiles.

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