Western Asset Municipal High Income Fund Inc. (NYSE:MHF) Sees Large Increase in Short Interest

Key Points

• Short interest in Western Asset Municipal High Income Fund rose sharply, increasing by 53.9% to 53,033 shares as of March 31, equal to about 0.2% of shares outstanding and a days-to-cover of 0.8.
• The fund announced a monthly dividend of $0.034 payable May 29 with a record date of May 21, implying an annualized yield of about 5.8%.
• Several large investors (including Raymond James, Bank of America, LPL and Titleist Asset Management) have recently increased or initiated positions, while the stock traded around $6.98 with a 12‑month range of $6.61–$7.64.

Western Asset Municipal High Income Fund Inc. (NYSE:MHF - Get Free Report) was the recipient of a large increase in short interest in March. As of March 31st, there was short interest totaling 53,033 shares, an increase of 53.9% from the March 15th total of 34,455 shares. Currently, 0.2% of the shares of the stock are sold short. Based on an average daily trading volume, of 66,372 shares, the days-to-cover ratio is currently 0.8 days.

Hedge Funds Weigh In On Western Asset Municipal High Income Fund

A number of large investors have recently added to or reduced their stakes in the business. Raymond James Financial Inc. raised its position in Western Asset Municipal High Income Fund by 1.0% in the 3rd quarter. Raymond James Financial Inc. now owns 1,046,548 shares of the financial services provider's stock worth $7,567,000 after purchasing an additional 10,603 shares during the period. Bank of America Corp DE grew its holdings in Western Asset Municipal High Income Fund by 0.4% in the 3rd quarter. Bank of America Corp DE now owns 585,215 shares of the financial services provider's stock worth $4,231,000 after acquiring an additional 2,350 shares during the last quarter. Titleist Asset Management LLC bought a new stake in Western Asset Municipal High Income Fund in the 4th quarter worth $2,863,000. LPL Financial LLC grew its holdings in Western Asset Municipal High Income Fund by 17.0% in the 4th quarter. LPL Financial LLC now owns 389,642 shares of the financial services provider's stock worth $2,681,000 after acquiring an additional 56,526 shares during the last quarter. Finally, Prospera Financial Services Inc grew its holdings in Western Asset Municipal High Income Fund by 8.5% in the 3rd quarter. Prospera Financial Services Inc now owns 166,418 shares of the financial services provider's stock worth $1,203,000 after acquiring an additional 13,007 shares during the last quarter.

Western Asset Municipal High Income Fund Stock Performance

Shares of Western Asset Municipal High Income Fund stock traded up $0.04 on Tuesday, hitting $6.98. 4,317 shares of the company traded hands, compared to its average volume of 57,580. The firm's 50-day simple moving average is $6.91 and its 200 day simple moving average is $6.96. Western Asset Municipal High Income Fund has a 12-month low of $6.61 and a 12-month high of $7.64.

Western Asset Municipal High Income Fund Announces Dividend

The firm also recently announced a monthly dividend, which will be paid on Friday, May 29th. Investors of record on Thursday, May 21st will be given a $0.034 dividend. This represents a c) dividend on an annualized basis and a yield of 5.8%. The ex-dividend date is Thursday, May 21st.

Western Asset Municipal High Income Fund Company Profile

Western Asset Municipal High Income Fund Inc is a closed-end management investment company that seeks to provide high current income exempt from federal income taxes. The fund primarily invests in U.S. municipal securities, with an emphasis on high-yield bonds issued by state and local governments, authorities and agencies. Its portfolio may include general obligation bonds, revenue bonds, pre-refunded bonds, insured securities and variable-rate instruments, with the goal of delivering attractive tax-advantaged yields for shareholders.

The fund is managed by Western Asset Management Company, LP, a global fixed-income specialist and subsidiary of Franklin Resources, Inc Western Asset's investment team employs a disciplined, research-driven approach, combining top-down macroeconomic analysis with bottom-up credit research to identify opportunities across the municipal bond market.

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