HYI Stock Summary and Trading Ideas (Western Asset High Yield Defined Opportunity | NYSE:HYI)

The Fund’s primary investment objective is to provide high income. As a secondary investment objective, the Fund will seek capital appreciation. The Fund seeks to achieve its investment objectives by investing, under normal market conditions, at least 80% of its net assets in a portfolio of high-yield corporate fixed-income securities with varying maturities. Currently, the Fund focuses on lower-quality and higher-yielding opportunities in the below investment grade corporate debt markets. Under normal market conditions, the Fund may also invest up to 20% of its net assets in fixed-income securities issued by U.S. or foreign governments, agencies and instrumentalities and/or fixed-income securities that are of investment grade quality. The Fund has a limited term and as a fundamental policy intends to liquidate and distribute substantially all of its net assets to stockholders after making appropriate provisions for any liabilities of the Fund on or about September 30, 2025. In purchasing securities and other investments for the Fund, Western Asset, the Fund’s subadviser, may take full advantage of the entire range of maturities offered by fixed-income securities and may adjust the average maturity or duration of the Fund’s portfolio from time to time, depending on its assessment of the relative yields available on securities of different durations and its expectations of future changes in interest rates. The Fund may utilize a variety of derivative instruments primarily for hedging and risk management purposes, although the Fund may also use derivative instruments for investment purposes.

Western Asset High Yield Defined Opportunity trades on the NYSE stock market under the symbol HYI.

As of April 19, 2024, HYI stock price climbed to $11.78 with 8,137 million shares trading.

HYI has a beta of 0.37, meaning it tends to be less sensitive to market movements. HYI has a correlation of 0.17 to the broad based SPY ETF.

HYI has a market cap of $266.94 million. This is considered a Small Cap stock.

In the last 3 years, HYI stock traded as high as $16.64 and as low as $10.99.

HYI has underperformed the market in the last year with a return of +10.6%, while the SPY ETF gained +21.8%. In the last 3 month period, HYI fell short of the market, returning 0.0%, while SPY returned +4.8%. However, in the most recent 2 weeks HYI has outperformed the stock market by returning 0.0%, while SPY returned -3.0%.

HYI support price is $11.66 and resistance is $11.82 (based on 1 day standard deviation move). This means that using the most recent 20 day stock volatility and applying a one standard deviation move around the stock's closing price, stastically there is a 67% probability that HYI stock will trade within this expected range on the day.