Western Asset Investment Grade Income Fund Inc. (NYSE:PAI) Sees Large Increase in Short Interest

Key Points

• Short interest nearly doubled to 11,144 shares as of September 15, up 96.1% from August 31, though only 0.1% of shares are short and the days-to-cover ratio is 0.4.
• PAI opened at $11.43, near its 52-week low of $11.40 and below its 50-day and 200-day moving averages of $11.84 and $12.03, respectively.
• The fund declared a monthly dividend of $0.0525 per share, equivalent to $0.63 annually and a 5.5% yield; institutional investors own 18.99% of the fund.

Western Asset Investment Grade Income Fund Inc. (NYSE:PAI - Get Free Report) was the target of a significant increase in short interest in the month of September. As of September 15th, there was short interest totaling 11,144 shares, an increase of 96.1% from the August 31st total of 5,682 shares. Based on an average trading volume of 30,358 shares, the days-to-cover ratio is presently 0.4 days. Currently, 0.1% of the shares of the company are short sold.

Western Asset Investment Grade Income Fund Price Performance

NYSE PAI opened at $11.43 on Tuesday. Western Asset Investment Grade Income Fund has a 52-week low of $11.40 and a 52-week high of $12.95. The firm has a 50-day moving average price of $11.84 and a 200 day moving average price of $12.03.

Western Asset Investment Grade Income Fund Dividend Announcement

The firm also recently announced a monthly dividend, which will be paid on Monday, November 30th. Shareholders of record on Friday, November 20th will be given a dividend of $0.0525 per share. The ex-dividend date is Friday, November 20th. This represents a $0.63 annualized dividend and a yield of 5.5%.

Hedge Funds Weigh In On Western Asset Investment Grade Income Fund

A number of large investors have recently modified their holdings of PAI. Sit Investment Associates Inc. purchased a new stake in shares of Western Asset Investment Grade Income Fund in the fourth quarter valued at approximately $14,335,000. 1607 Capital Partners LLC raised its position in Western Asset Investment Grade Income Fund by 9.8% in the fourth quarter. 1607 Capital Partners LLC now owns 712,889 shares of the financial services provider's stock worth $8,897,000 after acquiring an additional 63,734 shares in the last quarter. Fiera Capital Corp raised its position in Western Asset Investment Grade Income Fund by 44.0% in the fourth quarter. Fiera Capital Corp now owns 133,223 shares of the financial services provider's stock worth $1,663,000 after acquiring an additional 40,732 shares in the last quarter. Waverly Advisors LLC purchased a new position in Western Asset Investment Grade Income Fund in the second quarter worth $269,000. Finally, Bank of America Corp DE acquired a new stake in Western Asset Investment Grade Income Fund in the second quarter valued at $240,000. 18.99% of the stock is owned by hedge funds and other institutional investors.

Western Asset Investment Grade Income Fund Company Profile

Western Asset Investment Grade Income Fund NYSE: PAI is a closed-end investment company that seeks to provide investors with a high level of current income while preserving capital. The fund invests primarily in investment-grade fixed-income securities, including corporate bonds, government and agency securities, mortgage-backed securities, and other debt instruments.

The fund is managed by Western Asset Management Company, a global fixed-income investment manager and a subsidiary of Franklin Resources, Inc Western Asset uses fundamental credit research, interest-rate analysis, and portfolio management to select securities and manage exposure across bond-market sectors and maturities.

PAI may invest in debt securities issued by entities in the United States and other countries, allowing the portfolio to gain exposure to a range of fixed-income markets.

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