Mfs Muni Inc Tr (NYSE:MFM) Sees Large Increase in Short Interest

Key Points

• Short interest more than doubled to 109,125 shares as of August 31, up 123.2% from mid-August, though it represents only about 0.3% of shares outstanding and 0.5 days of average trading volume.
• Several institutional investors increased their MFM positions, including Robinson Capital Management, which boosted its stake by 501.1%, and Hennion & Walsh Asset Management, which raised its holdings by 28.1%.
• MFM shares fell 1.0% to $5.13, near the stock’s 52-week low, while the trust announced a monthly $0.03 dividend, representing an annualized yield of approximately 7.0%.

Mfs Muni Inc Tr (NYSE:MFM - Get Free Report) was the target of a significant growth in short interest in August. As of August 31st, there was short interest totaling 109,125 shares, a growth of 123.2% from the August 15th total of 48,886 shares. Approximately 0.3% of the shares of the company are short sold. Based on an average daily volume of 221,650 shares, the days-to-cover ratio is currently 0.5 days.

Institutional Trading of Mfs Muni Inc Tr

Institutional investors have recently made changes to their positions in the business. Hennion & Walsh Asset Management Inc. raised its position in Mfs Muni Inc Tr by 28.1% in the second quarter. Hennion & Walsh Asset Management Inc. now owns 1,024,569 shares of the closed-end fund's stock worth $5,758,000 after purchasing an additional 224,810 shares in the last quarter. Robinson Capital Management LLC lifted its stake in Mfs Muni Inc Tr by 501.1% during the second quarter. Robinson Capital Management LLC now owns 1,076,957 shares of the closed-end fund's stock worth $6,052,000 after purchasing an additional 897,784 shares during the period. Closed End Fund Advisors Inc. acquired a new stake in Mfs Muni Inc Tr during the fourth quarter valued at approximately $1,442,000. Rivernorth Capital Management LLC boosted its holdings in Mfs Muni Inc Tr by 12.0% during the first quarter. Rivernorth Capital Management LLC now owns 908,050 shares of the closed-end fund's stock valued at $4,894,000 after purchasing an additional 97,052 shares in the last quarter. Finally, NewEdge Advisors LLC grew its stake in shares of Mfs Muni Inc Tr by 25.6% in the 3rd quarter. NewEdge Advisors LLC now owns 96,929 shares of the closed-end fund's stock valued at $522,000 after purchasing an additional 19,747 shares during the period.

Mfs Muni Inc Tr Stock Down 1.0%

MFM stock traded down $0.05 during midday trading on Monday, hitting $5.13. The stock had a trading volume of 34,861 shares, compared to its average volume of 170,272. Mfs Muni Inc Tr has a 52 week low of $5.10 and a 52 week high of $5.67. The stock has a 50-day simple moving average of $5.41 and a 200 day simple moving average of $5.43.

Mfs Muni Inc Tr Dividend Announcement

The firm also recently disclosed a monthly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Tuesday, September 22nd will be paid a $0.03 dividend. The ex-dividend date is Tuesday, September 22nd. This represents a c) dividend on an annualized basis and a dividend yield of 7.0%.

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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