Saba Capital Management, a major owner of Salient Midstream (SMM), recently added 35,636 shares. The buy increased the fund’s holdings by over 1.2 percent, and came to a total purchase price of just over $261,000.
That adds on the fund’s other buys, including another 38,000 shares added earlier in February, as well as nearly 100,00 shares in January and over 100,000 in December alone.
Outside of major fund holders, no insiders are recorded owners of the company since it went public. However, institutional investors like Saba own nearly 48 percent of shares.
The recently-publicly-launched fund invests in a number of public companies operating in the midstream services, including natural gas and oil, as well as master limited partnerships.
Since going public, shares have risen over 48 percent. The stock currently trades just under book value, which should be a reasonable measure of the value of assets held on the company’s books, including stakes in other publicly-traded companies.
Action to take: Shares look attractive as a diversified way to invest across the energy sector right now. Plus, shares pay a dividend yield of nearly 4 percent here.
The fund is still recently public, so no options are available yet for traders looking for a leveraged play. Fortunately, options traders have ample opportunities across the energy sector right now.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.