US Bancorp DE has reported a significant increase in its holdings of Franklin Resources, Inc. during the first quarter of this year, according to the company’s recent filing with the Securities and Exchange Commission (SEC). The bank’s holdings in the closed-end fund’s stock grew by 60.7% after it purchased an additional 5,727 shares, resulting in a total ownership of 15,169 shares. The value of US Bancorp DE’s holdings in Franklin Resources is estimated to be around $409,000 as per their most recent SEC filing.
Franklin Resources, Inc., also known as Franklin Templeton Investments, is a global investment management firm based in San Mateo, California. With over 70 years of experience, the company specializes in providing investment advisory services to individual and institutional investors across various asset classes.
In addition to their increased holdings, US Bancorp DE revealed that Franklin Resources announced a quarterly dividend on its common stock. Shareholders who were recorded as such on June 30th received a dividend payment of $0.30 per share on July 14th. This translates to an annualized dividend payout of $1.20 per share and a yield of 4.65%. It is worth noting that these figures are based on the ex-dividend date being set for June 29th.
Franklin Resources has maintained a solid track record when it comes to dividend payouts. With a current dividend payout ratio of 75%, the company demonstrates its commitment to rewarding shareholders through regular distributions from its earnings.
As August draws to a close and we review recent developments in the financial markets, it is clear that institutions such as US Bancorp DE recognize opportunities for growth and value in well-established companies like Franklin Resources. By increasing their holdings in this renowned investment management firm and capitalizing on its dividend policy, US Bancorp DE aims to generate returns for their own investors.
This news brings attention not only to US Bancorp DE’s strategic investment decision but also highlights the potential opportunities available for investors looking to reap benefits from dividend stocks. By carefully selecting companies with solid dividend policies and strong long-term growth prospects, investors can position themselves for potentially lucrative returns.
As always, prudent investors should conduct thorough research and analysis before making any investment decisions. It is essential to understand a company’s financial health, its future growth prospects, and other relevant factors that may impact its ability to sustain dividend payments.
In conclusion, US Bancorp DE’s increased holdings in Franklin Resources, Inc. indicate their confidence in the investment management firm’s prospects. Furthermore, Franklin Resources’ regular dividend payouts represent an attractive opportunity for income-seeking investors. With careful evaluation and due diligence, individuals and institutions alike can make informed investment decisions that align with their financial goals and risk tolerance.
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
Changes in Stakes and Assessments Highlight Cautious Sentiment towards Franklin Resources, Inc. Stock
Franklin Resources, Inc., a global investment management company, has been subject to various changes in the stakes of institutional investors and hedge funds. ETF Managers Group LLC, for instance, increased its stake in Franklin Resources by 1.5% during the first quarter. The company now owns 26,299 shares of Franklin Resources’ stock, worth approximately $708,000 after acquiring an additional 392 shares during the last quarter. Similarly, Van ECK Associates Corp grew its stake in Franklin Resources by 5.6% during the fourth quarter, now owning 8,586 shares valued at $226,000 after purchasing an additional 457 shares.
Whitener Capital Management Inc. and Abundance Wealth Counselors also increased their stakes in Franklin Resources during the first and fourth quarters respectively. Whitener Capital Management now owns 17,884 shares worth $482,000 – an increase of 2.6%, while Abundance Wealth Counselors have acquired an additional 470 shares during the fourth quarter bringing their total stake to 28,228 shares worth $745,000.
Additionally, Kinneret Advisory LLC grew its stake in Franklin Resources by 2.3% during the first quarter and now owns 22,250 shares valued at $628,000 following their acquisition of an additional 497 shares.
It is noteworthy that hedge funds and other institutional investors currently own approximately 46.70% of the stock.
Several brokerages have recently assessed Franklin Resources as well. BMO Capital Markets raised their target price on Franklin Resources from $24.00 to $27.00 on July 31st through a research note. Meanwhile StockNews.com initiated coverage on Franklin Resources on August 17th and assigned it a “hold” rating.
Other firms such as Wells Fargo & Company boosted their price target from $25.50 to $26.00 in a research note released on July 13th which was followed by The Goldman Sachs Group raising their price target from $21.50 to $24.50 on August 1st, giving the company a “sell” rating. Morgan Stanley boosted their price target on Franklin Resources as well from $23.00 to $24.00 and conferred an “underweight” rating.
Six equities research analysts have rated the stock as “sell,” while five have given it a “hold” rating. According to Bloomberg.com, Franklin Resources has a consensus rating of “Reduce” along with a consensus price target of $25.25.
As of Friday, August 27, shares of Franklin Resources opened at $25.79. With a 52-week low of $20.24 and a highpoint of $34.37, the company has demonstrated volatility within the past year.
Franklin Resources has exhibited strong financials in its recent earnings report released on July 28th. The closed-end fund reported an EPS (earnings per share) of $0.63 for the quarter – exceeding analysts’ consensus estimate of $0.60 by $0.03.
Moreover, Franklin Resources attained a return on equity of 10.43% and a net margin of 10.51%. The company generated revenue amounting to $1.97 billion during the quarter compared to the forecasted revenue estimate of $1.50 billion – signifying growth despite a decrease in revenue by 3.1% when compared to the same period last year.
Analysts predict that Franklin Resources will post an EPS (earnings per share) of 2.38 for the current fiscal year.
In conclusion, developments in the stakes held by institutional investors and hedge funds along with assessments made by various brokerages indicate what can be perceived as cautious sentiment towards Franklin Resources’ stock as reflected in prevailing sell ratings and reduced price targets assigned to it during recent assessments.
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