In the first quarter of this year, &Franklin Resources Inc. significantly increased its holdings in Franklin Resources, Inc. (NYSE:BEN) by 197.0%, according to the company’s recent filing with the Securities & Exchange Commission. The institutional investor now owns 2,598,687 shares of the closed-end fund’s stock, having acquired an additional 1,723,802 shares during the period. As a result, Franklin Resources Inc. now holds approximately 0.52% of Franklin Resources which is valued at $70,009,000 based on its most recent SEC filing.
Furthermore, Franklin Resources Inc. recently announced that it will be paying out a quarterly dividend on Friday, October 13th to its shareholders of record as of Friday, September 29th. The dividend amount per share is set at $0.30, resulting in an annualized dividend of $1.20 and a yield of 4.63%. It is important to note that those who wish to receive the dividend must ensure they are recorded as shareholders by Thursday, September 28th as it represents the ex-dividend date.
Franklin Resources has a current dividend payout ratio of 75.00%, indicating that three-quarters of its earnings are distributed through dividends to shareholders.
Overall, these developments reflect a significant increase in holdings by &Franklin Resources Inc., demonstrating its confidence in the potential growth and profitability associated with Franklin Resources stocks. With a substantial dividend payout and a notable shareholding position held by an institutional investor like Franklin Resources Inc., investors may find these aspects appealing when considering their investment strategies.
As always, potential investors should conduct their own thorough research and analysis before making any financial decisions based on this information or any other sources available to them in order to make well-informed choices tailored to their individual circumstances and risk tolerance levels.
Date: September 9, 2023
Franklin Resources, Inc.
BEN
Strong Buy
Updated on: 05/12/2023
Financial Health
Very Healthy
Debt to equity ratio: Buy
Price to earnings ratio: Strong Buy
Price to book ratio: Strong Buy
DCF: Strong Buy
ROE: Neutral
Institutional Investors Make Significant Changes to Positions in Franklin Resources as Analysts Provide Mixed Ratings
As of the first quarter of this year, various institutional investors have made significant changes to their positions in Franklin Resources, a closed-end fund. American Century Companies Inc., for instance, saw a 63.4% growth in its stake in the company during this period. Their acquisition of an additional 28,795 shares brought their total ownership to 74,206 shares worth $2,072,000. Similarly, Private Advisor Group LLC increased its stake by 24.8%, acquiring an additional 2,277 shares valued at $320,000. MetLife Investment Management LLC also saw its stake grow by 23.5% after purchasing an additional 14,580 shares worth $2,140,000. Panagora Asset Management Inc., on the other hand, experienced a staggering boost in their stake by 89.2%. They bought an additional 17,376 shares amounting to $1,029,000 in value. Rhumbline Advisers rounded up this impressive list with a modest increase of 4%, adding an extra 18,645 shares valued at $13,666,000.
Overall, it is worth highlighting that approximately 46.53% of Franklin Resources’ stock is currently owned by institutional investors and hedge funds.
In addition to these changes in ownership stakes held by institutions and funds, research analysts have also recently given their take on the performance of Franklin Resources’ stock (NYSE:BEN). For instance StockNews.com initiated coverage on the company and issued a “hold” rating for the stock on August 17th this year.
Morgan Stanley was also involved in analyzing Franklin Resources’ stock; however they raised concerns over its performance by giving it an “underweight” rating and increasing their target price from $23.00 to $24.00 on August 8th.
The Goldman Sachs Group shared similar sentiments regarding the stock’s performance and gave it a “sell” rating while raising their target price from $21.50 to $24.50 on August 1st. Furthermore, Wells Fargo & Company increased their target price from $25.50 to $26.00 on July 13th.
Lastly, BMO Capital Markets raised its target price from $24.00 to $27.00 on July 31st.
Overall, of the eleven investment analysts that have rated the stock, six have given it a sell rating and five have provided a hold rating for Franklin Resources. It is important to note that based on data from Bloomberg, the company’s average rating is currently listed as “Reduce” with an average target price of $25.25.
Looking at its recent opening price of $25.93, Franklin Resources seems to be maintaining its stability in the stock market. The company’s performance over the past year has witnessed a low of $20.24 and a high of $34.37.
With a market capitalization of approximately $12.94 billion, Franklin Resources exhibits a price-to-earnings ratio of 16.21 and a beta value of 1.30.
The company’s financial health is further reflected in its quick ratio and current ratio; both stand at 1.89, indicating good liquidity within the organization.
When analyzing Franklin Resources’ debt-to-equity ratio, it becomes apparent that the company sits comfortably at 0.90, implying a moderate level of debt relative to equity.
In terms of moving averages, Franklin Resources boasts a fifty-day simple moving average standing at $27.54 and has observed a slower but steadier moving average over two hundred days at $26.86.
Franklin Resources (NYSE:BEN) last reported its quarterly earnings data on July 28th this year when it disclosed earning per share (EPS) amounting to $0.63 for the quarter – exceeding market expectations by $0.03. Additionally, the company generated revenue of $1.97 billion during this quarter, surpassing consensus estimates that had predicted $1.50 billion.
On an annual basis, Franklin Resources witnessed a decline in revenue of 3.1% during this quarter compared to the same period last year. The business attributed this decrease to fluctuating market conditions.
Despite the decrease in performance on a quarterly basis, Franklin Resources maintains an attractive return on equity rate of 10.43% and a net margin of 10.51%.
Looking ahead, sell-side analysts estimate that Franklin Resources, Inc will achieve an EPS of 2.38 for the current fiscal year.
Investors and industry insiders eagerly await future reports to gain more visibility into the financial health and performance of Franklin Resources as they assess potential investment opportunities in this closed-end fund’s stock.
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