Sumitomo Mitsui Trust Group Inc. Lowers Stake in Franklin Resources, Inc. $BEN

Key Points

• Sumitomo Mitsui Trust Group cut its Franklin Resources stake by 30.6% in the first quarter, selling 90,993 shares and leaving it with 206,206 shares worth about $4.87 million.
• Franklin Resources reported better-than-expected quarterly results, with EPS of $0.71 versus $0.55 expected and revenue of $1.75 billion, up 8.7% year over year.
• The company continues to pay a 4.0% dividend yield, but its payout ratio is currently 100.76%; meanwhile, analysts’ overall view remains Hold with an average price target of $32.00.

Sumitomo Mitsui Trust Group Inc. reduced its stake in shares of Franklin Resources, Inc. (NYSE:BEN - Free Report) by 30.6% in the first quarter, according to its most recent filing with the SEC. The fund owned 206,206 shares of the closed-end fund's stock after selling 90,993 shares during the period. Sumitomo Mitsui Trust Group Inc.'s holdings in Franklin Resources were worth $4,871,000 as of its most recent SEC filing.

A number of other institutional investors have also added to or reduced their stakes in the company. Mariner LLC lifted its stake in shares of Franklin Resources by 0.7% in the 4th quarter. Mariner LLC now owns 56,151 shares of the closed-end fund's stock valued at $1,341,000 after acquiring an additional 377 shares during the last quarter. Zions Bancorporation National Association UT boosted its holdings in shares of Franklin Resources by 35.5% during the 4th quarter. Zions Bancorporation National Association UT now owns 1,512 shares of the closed-end fund's stock valued at $36,000 after buying an additional 396 shares in the last quarter. Exchange Traded Concepts LLC grew its stake in shares of Franklin Resources by 4.2% in the 4th quarter. Exchange Traded Concepts LLC now owns 9,751 shares of the closed-end fund's stock worth $233,000 after buying an additional 397 shares during the last quarter. Horizon Investments LLC boosted its stake in Franklin Resources by 4.3% in the 4th quarter. Horizon Investments LLC now owns 10,471 shares of the closed-end fund's stock worth $250,000 after purchasing an additional 433 shares in the last quarter. Finally, Larson Financial Group LLC increased its position in shares of Franklin Resources by 48.1% during the fourth quarter. Larson Financial Group LLC now owns 1,392 shares of the closed-end fund's stock valued at $33,000 after acquiring an additional 452 shares in the last quarter. Institutional investors own 47.56% of the company's stock.

Franklin Resources Stock Performance

Shares of BEN opened at $33.16 on Wednesday. The business has a 50-day simple moving average of $32.28 and a two-hundred day simple moving average of $28.09. The company has a quick ratio of 1.87, a current ratio of 1.87 and a debt-to-equity ratio of 1.10. Franklin Resources, Inc. has a 52 week low of $21.10 and a 52 week high of $34.92. The stock has a market cap of $17.23 billion, a price-to-earnings ratio of 25.31, a PEG ratio of 0.77 and a beta of 1.54.

Franklin Resources (NYSE:BEN - Get Free Report) last announced its quarterly earnings data on Tuesday, April 28th. The closed-end fund reported $0.71 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.55 by $0.16. The company had revenue of $1.75 billion during the quarter, compared to the consensus estimate of $1.70 billion. Franklin Resources had a return on equity of 10.58% and a net margin of 8.12%.The firm's revenue was up 8.7% on a year-over-year basis. During the same period in the previous year, the company posted $0.47 EPS. On average, analysts expect that Franklin Resources, Inc. will post 2.81 EPS for the current year.

Franklin Resources Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, July 10th. Shareholders of record on Monday, June 29th were given a $0.33 dividend. This represents a $1.32 dividend on an annualized basis and a dividend yield of 4.0%. The ex-dividend date was Monday, June 29th. Franklin Resources's dividend payout ratio is presently 100.76%.

Analyst Ratings Changes

A number of equities research analysts have commented on the stock. Zacks Research raised shares of Franklin Resources from a "hold" rating to a "strong-buy" rating in a research report on Monday, June 22nd. The Goldman Sachs Group boosted their price target on Franklin Resources from $30.50 to $34.00 and gave the company a "buy" rating in a research note on Wednesday, April 29th. Weiss Ratings upgraded shares of Franklin Resources from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Wednesday, June 3rd. Morgan Stanley raised their price objective on shares of Franklin Resources from $31.00 to $34.00 and gave the stock an "equal weight" rating in a report on Friday, June 26th. Finally, Evercore restated an "underperform" rating and set a $35.00 target price on shares of Franklin Resources in a research report on Friday. One equities research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, three have assigned a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, Franklin Resources currently has an average rating of "Hold" and an average price target of $32.00.

Franklin Resources Profile

Franklin Resources, Inc, doing business as Franklin Templeton, is a global investment management organization that offers a wide range of asset management solutions to institutional and individual investors. The firm's core focus is on delivering active portfolio management across equities, fixed income, multi-asset strategies and alternative investments. Franklin Templeton's product lineup includes mutual funds, exchange-traded funds (ETFs), closed-end funds, separately managed accounts and sub-advisory services designed to meet varying risk-return objectives and income needs.

Founded in 1947 by Rupert H.

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