Gabelli Healthcare Trust Sees Significant Rise in Short Interest

The short interest in the Gabelli Healthcare & Wellness Trust (NYSE: GRX) surged by an impressive 68.1% in October, reaching a total of 7,900 shares as of October 15, 2023. This marks a substantial increase from the 4,700 shares reported on September 30, 2023. With an average daily trading volume of 33,000 shares, the short-interest ratio now stands at 0.2 days, highlighting a growing interest among investors in the shorting of this healthcare-focused investment trust.

Insider Activity Reflects Confidence

In a related development, major shareholder Saba Capital Management, L.P. acquired 20,808 shares of the trust’s stock on October 23, 2023, at an average price of $9.28 per share. This transaction amounted to approximately $193,098.24. Following this purchase, Saba Capital now holds a total of 2,088,354 shares in the company, valued at around $19,379,925.12. This acquisition represents a 1.01% increase in their overall position. The details of the trade were disclosed through a filing with the Securities and Exchange Commission, which is publicly accessible.

Additionally, insiders have collectively purchased 72,293 shares of the company’s stock valued at $678,185 over the past quarter, indicating a strong vote of confidence from those closely connected to the trust.

Institutional Investors Adjust Holdings

Several large institutional investors have recently modified their stakes in the Gabelli Healthcare & Wellness Trust. Sit Investment Associates Inc. boosted its position by 16.1% in the first quarter, acquiring an additional 59,255 shares, bringing its total holdings to 426,290 shares valued at approximately $4,297,000.

Similarly, Gamco Investors Inc. ET AL increased its stake by 2.3%, now owning 350,109 shares valued at $3,529,000 after acquiring an additional 7,883 shares. LPL Financial LLC also raised its holdings by 3.1%, now owning 289,088 shares valued at $2,914,000. Blue Bell Private Wealth Management LLC expanded its position by 15.4%, with 277,858 shares valued at $2,520,000, following a purchase of 37,156 shares. Lastly, Aviance Capital Partners LLC increased its stake by 33.6%, acquiring 41,743 shares to reach a total of 165,884 shares valued at $1,672,000.

Dividend Announcement and Performance

The Gabelli Healthcare & Wellness Trust has also recently announced its quarterly dividend, which was paid on September 23, 2023. Shareholders of record on September 16, 2023, received a dividend of $0.17 per share. This reflects an annualized dividend of $0.68, resulting in a dividend yield of 7.3%, a notable return for investors in the healthcare sector.

The Gabelli Healthcare and Wellness Trust operates as a closed-ended equity mutual fund, managed by Gabelli Funds, LLC. The trust focuses on investing in public equity markets globally, particularly in companies within the healthcare and wellness sectors, aiming to deliver value to its investors through strategic equity investments.

This surge in short interest, combined with significant insider purchasing and institutional investor adjustments, indicates a dynamic shift in the market perception of the Gabelli Healthcare & Wellness Trust, making it a focal point for investors closely monitoring healthcare investments.