DTF Tax-Free Income 2028 Term Fund Inc. (NYSE: DTF) experienced a notable increase in short interest during December 2023. As of December 31, the total short interest reached 21,525 shares, marking a significant rise of 36.1% from the 15,820 shares reported on December 15. Given the average daily trading volume of 11,732 shares, this yields a days-to-cover ratio of approximately 1.8 days. Currently, around 0.3% of the fund’s total shares are short sold.
Institutional Investors Adjust Positions
Recent activity among institutional investors indicates a growing interest in DTF. Several hedge funds made strategic adjustments to their holdings in the fund during the second quarter. For instance, Financial Gravity Companies Inc. acquired a new stake valued at approximately $36,000, while Raymond James Financial Inc. secured a position valued at $69,000. J.W. Cole Advisors Inc. invested around $165,000, and Focus Partners Wealth entered the market with a stake worth about $190,000. Notably, Seven Mile Advisory made a significant acquisition in the third quarter, valued at approximately $1,446,000.
Institutional investors and hedge funds now own approximately 43.81% of the fund’s shares, reflecting a robust level of institutional confidence in DTF’s strategy and performance.
Stock Performance and Dividend Outlook
On January 1, 2024, DTF Tax-Free Income 2028 Term Fund’s stock traded slightly lower, closing at $11.42 following midday trading. The trading volume reached 29,808 shares, surpassing its average volume of 10,853 shares. Over the past year, the stock has fluctuated between a low of $10.95 and a high of $11.50. The fund’s 50-day moving average stands at $11.36, while the 200-day moving average is at $11.33.
DTF Tax-Free Income 2028 Term Fund aims to provide shareholders with tax-exempt current income, focusing primarily on a diversified portfolio of municipal securities. These investments are primarily issued by state and local governmental entities across the United States. The fund is designed to liquidate its holdings and return net assets to shareholders by its scheduled termination date in August 2028.
As the market continues to evolve, investors are closely monitoring the DTF Fund’s performance and the implications of recent changes in short interest and institutional activity.
