BlackRock Capital Allocation Term Trust (NYSE:BCAT) Shares Gap Down - Time to Sell?

Key Points

• BCAT shares fell sharply: The stock opened at $15.10 after closing at $15.91 and last traded around $14.43 on volume of roughly 1.1 million shares, below its 50-day and 200-day moving averages.
• High monthly dividend announced: The fund declared a $0.2501-per-share monthly dividend for shareholders of record on December 11, implying an annualized yield of approximately 20.5%.
• Institutional ownership remains significant: Several investment firms increased or initiated positions, and institutional investors and hedge funds collectively own 36.12% of BCAT, a diversified closed-end fund investing across credit and equity markets.

BlackRock Capital Allocation Term Trust (NYSE:BCAT - Get Free Report)'s stock price gapped down prior to trading on Friday . The stock had previously closed at $15.91, but opened at $15.10. BlackRock Capital Allocation Term Trust shares last traded at $14.4270, with a volume of 1,106,940 shares changing hands.

BlackRock Capital Allocation Term Trust Price Performance

The company has a 50 day moving average of $15.83 and a 200 day moving average of $15.42.

BlackRock Capital Allocation Term Trust Dividend Announcement

The firm also recently declared a monthly dividend, which will be paid on Tuesday, December 22nd. Shareholders of record on Friday, December 11th will be issued a $0.2501 dividend. The ex-dividend date is Friday, December 11th. This represents a c) annualized dividend and a yield of 20.5%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Geneos Wealth Management Inc. boosted its position in shares of BlackRock Capital Allocation Term Trust by 341.7% in the second quarter. Geneos Wealth Management Inc. now owns 2,045 shares of the company's stock worth $31,000 after acquiring an additional 1,582 shares during the last quarter. McIlrath & Eck LLC increased its position in BlackRock Capital Allocation Term Trust by 169.6% during the first quarter. McIlrath & Eck LLC now owns 3,130 shares of the company's stock worth $44,000 after purchasing an additional 1,969 shares during the last quarter. Parallel Advisors LLC acquired a new position in BlackRock Capital Allocation Term Trust during the third quarter worth approximately $47,000. Brown Brothers Harriman & Co. raised its stake in BlackRock Capital Allocation Term Trust by 450.0% during the third quarter. Brown Brothers Harriman & Co. now owns 5,500 shares of the company's stock worth $81,000 after purchasing an additional 4,500 shares during the period. Finally, Global Retirement Partners LLC purchased a new position in BlackRock Capital Allocation Term Trust during the second quarter worth approximately $115,000. Institutional investors and hedge funds own 36.12% of the company's stock.

BlackRock Capital Allocation Term Trust Company Profile

BlackRock Capital Allocation Term Trust NYSE: BCAT is a closed-end, diversified management investment company organized as a term trust. The fund's primary objective is to deliver high current income and total return by investing across a broad range of credit and equity markets. BCAT seeks to achieve this objective through a portfolio of corporate debt securities, floating-rate loans, convertible securities, common and preferred equity, and asset-backed securities.

BCAT employs an actively managed, multi-sector credit approach that spans investment-grade and below-investment-grade bonds, senior secured loans and structured credit.

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