Franklin Resources (NYSE:BEN) Sets New 1-Year Low – Here’s Why

Shares of Franklin Resources, Inc. (NYSE:BEN) reached a new 52-week low during mid-day trading on Monday . The stock traded as low as $18.93 and last traded at $18.96, with a volume of 1522406 shares traded. The stock had previously closed at $19.12.

Wall Street Analyst Weigh In

Several equities analysts recently weighed in on BEN shares. The Goldman Sachs Group upgraded Franklin Resources from a “sell” rating to a “neutral” rating and lifted their price target for the company from $21.00 to $22.00 in a research note on Monday, January 6th. JPMorgan Chase & Co. cut their price objective on Franklin Resources from $22.00 to $21.00 and set a “neutral” rating for the company in a research report on Tuesday, November 5th. Keefe, Bruyette & Woods reaffirmed an “underperform” rating and set a $19.00 target price (down from $20.00) on shares of Franklin Resources in a research note on Tuesday, November 5th. Morgan Stanley lifted their price target on shares of Franklin Resources from $18.00 to $19.00 and gave the company an “underweight” rating in a research note on Friday, December 20th. Finally, Evercore ISI cut their price target on shares of Franklin Resources from $20.00 to $19.00 and set an “underperform” rating for the company in a report on Friday, October 4th. Four research analysts have rated the stock with a sell rating and eight have given a hold rating to the company’s stock. According to data from MarketBeat, Franklin Resources has a consensus rating of “Hold” and a consensus price target of $20.55.

Franklin Resources Price Performance

The stock’s 50-day moving average price is $21.25 and its 200 day moving average price is $21.21. The company has a quick ratio of 1.63, a current ratio of 1.63 and a debt-to-equity ratio of 0.92. The firm has a market capitalization of $10.29 billion, a price-to-earnings ratio of 22.84, a PEG ratio of 2.38 and a beta of 1.41.

Franklin Resources (NYSE:BEN) last issued its earnings results on Monday, November 4th. The closed-end fund reported $0.59 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.60 by ($0.01). Franklin Resources had a net margin of 5.48% and a return on equity of 9.62%. The company had revenue of $2.21 billion during the quarter, compared to analysts’ expectations of $1.70 billion. During the same quarter in the previous year, the company earned $0.84 earnings per share. The firm’s quarterly revenue was up 11.3% compared to the same quarter last year. Equities research analysts expect that Franklin Resources, Inc. will post 2.39 earnings per share for the current fiscal year.

Franklin Resources Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, January 10th. Shareholders of record on Monday, December 30th were paid a dividend of $0.32 per share. This is a boost from Franklin Resources’s previous quarterly dividend of $0.31. The ex-dividend date was Monday, December 30th. This represents a $1.28 annualized dividend and a yield of 6.52%. Franklin Resources’s dividend payout ratio (DPR) is 148.84%.

Insider Activity at Franklin Resources

In other news, insider Franklin Resources Inc sold 7,900 shares of the company’s stock in a transaction on Friday, October 18th. The stock was sold at an average price of $43.71, for a total transaction of $345,309.00. Following the sale, the insider now owns 36,519 shares of the company’s stock, valued at approximately $1,596,245.49. This represents a 17.79 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 22.90% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Interval Partners LP boosted its stake in shares of Franklin Resources by 0.4% in the 2nd quarter. Interval Partners LP now owns 108,894 shares of the closed-end fund’s stock valued at $2,434,000 after buying an additional 483 shares during the period. PNC Financial Services Group Inc. grew its holdings in Franklin Resources by 0.8% during the 3rd quarter. PNC Financial Services Group Inc. now owns 69,585 shares of the closed-end fund’s stock worth $1,402,000 after acquiring an additional 572 shares in the last quarter. Anchor Investment Management LLC increased its position in shares of Franklin Resources by 30.2% in the 3rd quarter. Anchor Investment Management LLC now owns 2,604 shares of the closed-end fund’s stock valued at $52,000 after purchasing an additional 604 shares during the last quarter. SkyView Investment Advisors LLC lifted its position in shares of Franklin Resources by 3.2% during the 3rd quarter. SkyView Investment Advisors LLC now owns 19,485 shares of the closed-end fund’s stock worth $393,000 after purchasing an additional 609 shares during the last quarter. Finally, Wealth Enhancement Advisory Services LLC increased its holdings in Franklin Resources by 2.2% in the fourth quarter. Wealth Enhancement Advisory Services LLC now owns 33,918 shares of the closed-end fund’s stock valued at $683,000 after buying an additional 722 shares during the last quarter. 47.56% of the stock is owned by institutional investors and hedge funds.

Franklin Resources Company Profile

Franklin Resources, Inc is a publicly owned asset management holding company. Through its subsidiaries, the firm provides its services to individuals, institutions, pension plans, trusts, and partnerships. It launches equity, fixed income, balanced, and multi-asset mutual funds through its subsidiaries.