In what seems to be a rather puzzling and intriguing turn of events, Franklin Resources (NYSE:BEN) has released its quarterly earnings results, leaving investors both stunned and delighted. The closed-end fund reported a staggering $0.63 earnings per share (EPS) for the quarter, surpassing the consensus estimate by an unexpectedly bountiful $0.03, as reported by RTT News. To add to this bewildering news, the firm recorded revenue of $1.97 billion during the quarter, completely outshining the anticipated $1.50 billion.
Franklin Resources must be commended on their financial prowess, as they managed to achieve a net margin of 10.79% and a return on equity of 11.21%. These figures suggest that the company has demonstrated remarkable adaptability in navigating through uncertain economic times while maintaining substantial profitability. However, there is one caveat to all this prosperity; the company’s revenue for the quarter experienced a decline of 3.1% on a year-over-year basis when compared to the same quarter last year, during which they earned $0.82 earnings per share.
But let us not forget that progress requires effort and resilience – qualities Franklin Resources undoubtedly possesses. In upholding their commitment to shareholder value, the firm recently disclosed a quarterly dividend payment made on Friday, July 14th. Stockholders who were fortunate enough to be recorded on Friday, June 30th received a dividend of $0.30 per share. Astoundingly enough, this equates to an annualized dividend of $1.20 and an impressive dividend yield of 4.07%. Investors can rest assured knowing that Franklin Resources remains steadfast in their quest to distribute profitable returns.
At present, Franklin Resources finds its shares trading at $29.51 after experiencing an uptick of $1.10 during mid-day trading on Friday. This year has been nothing short of eventful for the company, as their stock has fluctuated between a low of $20.24 and a high of $34.37. As of today, the firm boasts a market capitalization of $14.78 billion, which in itself is an impressive feat. The P/E ratio stands at 17.10, further reinforcing Franklin Resources’ resilience in the face of volatility. In terms of risk measurement, the company maintains a beta value of 1.28.
Delving into the technicalities, we find that Franklin Resources sports a 50-day simple moving average of $26.67 and a 200-day simple moving average of $27.63. These figures suggest that investors may have reason to exercise caution and perhaps approach the situation with a nuanced perspective.
One cannot talk about Franklin Resources without acknowledging its status as a publicly owned asset management holding company. Through its subsidiaries, this renowned institution provides tailored financial services to individuals, institutions, pension plans, trusts, and partnerships alike. With an impressive portfolio comprising equity, fixed income, balanced, and multi-asset mutual funds launched through its subsidiaries, Franklin Resources showcases its expertise in adapting its offerings to meet diverse investment needs.
As we continue onwards through July 31st, 2023 – a date marked by unprecedented triumphs in Franklin Resources’ financial endeavors – one can’t help but wonder what lies ahead for this enigmatic and dynamic organization. Will they rise above their previous records? Will they exceed investors’ wildest expectations once more? Only time will uncover the mystifying path that unfolds before us all.
Disclaimer: This article is intended for informational purposes only and should not be construed as investment advice or a recommendation to buy or sell any security mentioned above.
Franklin Resources, Inc.
Updated on: 02/03/2024
Debt to equity ratio: Buy
Price to earnings ratio: Strong Buy
Price to book ratio: Strong Buy
DCF: Strong Buy
We did not find social sentiment data for this stock
|Analyst / firm
Franklin Resources, Inc. Attracts Attention from Analysts and Hedge Funds
Franklin Resources, Inc., a leading asset management holding company, continues to attract attention from analysts and hedge funds alike. Its subsidiaries offer a wide range of services to individuals, institutions, pension plans, trusts, and partnerships. Among its offerings are equity, fixed income, balanced, and multi-asset mutual funds.
Analysts have closely followed Franklin Resources’ performance over the past few months. One notable update came from Bank of America, which reduced their price target for the company from $28.00 to $24.00 and assigned an “underperform” rating. Similarly, Evercore ISI lowered their target price from $27.00 to $24.00 while maintaining an “underperform” rating.
On the other hand, Wells Fargo & Company raised their target price on Franklin Resources shares from $25.50 to $26.00 in a favorable research note published on July 13th. BMO Capital Markets also displayed confidence by increasing the target price from $19.00 to $20.00 in early May.
Morgan Stanley maintained their “underweight” rating for Franklin Resources’ stock while setting a target price at $23.00 per share in a research note made public on July 31st.
Overall, six research analysts have given Franklin Resources a sell rating while another six have labeled it as a hold option. According to Bloomberg.com data analyses at present time suggests that the consensus rating for the stock is “Hold,” with an average price target of roughly $24.55.
Moving beyond analyst reports, various hedge funds have recently made alterations to their positions with regards to Franklin Resources’ stock.
Vanguard Group Inc., for example, increased its holdings by 4.3% during the first quarter—now owning approximately 34 million shares valued at about $951 million after purchasing an additional 1.39 million shares during that period.
Likewise, Capital Research Global Investors boosted its holdings by 0.9% during the same period, owning a total of around 8.7 million shares worth approximately $243 million.
Invesco Ltd., another hedge fund group, witnessed a significant increase of 30.9% in its holdings, now totaling roughly 5.5 million shares valued at about $154 million after adding 1.3 million shares to its portfolio.
Additionally, Charles Schwab Investment Management Inc. raised its holdings by 7.7%, now owning approximately 4.8 million shares with an estimated value of $135 million after purchasing an additional 345,868 shares.
Morgan Stanley also expanded its stake in Franklin Resources by 7.7% during the fourth quarter, resulting in ownership of approximately 4 million shares now valued at around $107 million—a noteworthy addition.
Notably, institutional investors and hedge funds currently own around 46.70% of Franklin Resources’ stock.
As we move deeper into the year, it is clear that Franklin Resources continues to attract attention and undergo changes in both analyst recommendations and hedge fund positions. Investors will be keen on monitoring these developments as they navigate their way through the ever-shifting landscape of asset management and investments.