In the first quarter of this year, Rhumbline Advisers, an institutional investor, increased its stake in Franklin Resources, Inc. (NYSE:BEN) by 2.5%. According to their filing with the Securities and Exchange Commission (SEC), they purchased an additional 13,560 shares of the closed-end fund’s stock, bringing their total ownership to 562,675 shares. At the end of the reporting period, these shares were valued at $15,158,000.
Franklin Resources recently announced their quarterly dividend payment on July 14th. Shareholders who were recorded as owners on June 30th received a dividend of $0.30 per share. Annually, this represents a dividend payout of $1.20 per share and a dividend yield of 4.49%. The ex-dividend date for this payment was on June 29th.
Looking at Franklin Resources’ dividend payout ratio (DPR), we can see that it currently stands at 75.00%. This ratio indicates the proportion of earnings that are distributed to shareholders in the form of dividends.
As an institutional investor, Rhumbline Advisers’ decision to increase their stake demonstrates their confidence in Franklin Resources’ long-term prospects. By purchasing additional shares during the first quarter of this year, they have shown a belief in the company’s ability to generate returns and provide value for its shareholders.
It is worth noting that investments in stocks involve risks and investors should carefully consider factors such as dividends and financial performance before making investment decisions. Furthermore, past performance does not guarantee future results and it is always advisable to conduct thorough research when making investment choices.
As we look ahead into the future landscape of finance and investing, keeping track of institutional investors such as Rhumbline Advisers can provide valuable insights into market trends and potential opportunities for individual investors.
Please note that all information provided in this article is based on publicly available information as of September 2, 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
Ownership Changes and Mixed Analyst Views: Assessing the Prospects of Franklin Resources, Inc.
Franklin Resources, Inc. (NYSE: BEN), a leading global investment management firm, has recently witnessed changes in its ownership structure as institutional investors adjust their stakes in the company. Cooper Financial Group, an institutional investor, increased its position in Franklin Resources by 17.2% during the first quarter of this year. They now own 12,381 shares of the closed-end fund’s stock worth $334,000.
Another institutional investor, Intech Investment Management LLC, also made significant moves in its ownership of Franklin Resources. They increased their position by a staggering 126.5% during the first quarter, now owning 96,299 shares worth $2.59 million.
Ameritas Investment Partners Inc. raised its stake in Franklin Resources by 7.5% during the same period and now holds 44,431 shares worth $1.20 million. Private Advisor Group LLC also acquired a new position in the company during the first quarter valued at approximately $399,000.
Lastly, Ascent Group LLC augmented its position in Franklin Resources by 5.4%, holding 22,284 shares valued at $600,000.
Overall, institutional investors and hedge funds currently own approximately 46.53% of Franklin Resources’ stock.
The market response to these ownership changes has been mixed as equities analysts weigh in on the stock’s performance and prospects for growth. Morgan Stanley increased their price target from $23 to $24 and assigned an “underweight” rating to the company’s stock in a recent research report on August 8th. Wells Fargo & Company also upped their price target from $25.50 to $26 based on positive market indicators.
StockNews.com initiated coverage on Franklin Resources with a “hold” rating while BMO Capital Markets raised their price target from $24 to $27 for the stock based on their analysis.
However, The Goldman Sachs Group differed from these views and increased their price target from $21.50 to $24.50 with a “sell” rating on Franklin Resources’ shares.
In total, six investment analysts have given the stock a sell rating, while five recommend holding it. According to data from Bloomberg.com, Franklin Resources has an average rating of “Reduce” and a consensus target price of $25.25.
On September 2nd, Franklin Resources’ shares opened at $26.74 on the New York Stock Exchange (NYSE). The company has a market capitalization of approximately $13.34 billion, with a price-to-earnings ratio of 16.71 and a beta of 1.28.
Over the past year, Franklin Resources’ stock has ranged from a low of $20.24 to a high of $34.37, indicating significant volatility in its performance. Currently, the stock’s fifty-day simple moving average stands at $27.53, with its 200-day simple moving average close behind at $27.04.
Franklin Resources recently reported its earnings results for the quarter ending July 28th, beating analyst expectations by reporting earnings per share (EPS) of $0.63 compared to the consensus estimate of $0.60. The company’s revenue for the quarter was $1.97 billion, surpassing analyst estimates of $1.50 billion.
Despite this positive performance, Franklin Resources saw a decline in revenue by 3.1% compared to the same period last year due to challenging market conditions and heightened competition within the investment management industry.
Analysts project that Franklin Resources will post earnings per share of 2.38 for the current fiscal year based on sell-side estimates.
Overall, as institutional investors adjust their positions and equity analysts offer diverse opinions on Franklin Resources’ prospects, uncertainty surrounds its future performance in an increasingly competitive investment landscape.
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