Franklin Resources, Inc. (NYSE:BEN) Given Average Rating of "Hold" by Brokerages

Key Points

• Analyst sentiment is neutral: Eleven brokerages give Franklin Resources an average “Hold” rating, with a consensus 12-month price target of approximately $32.44.
• Recent financial results exceeded expectations: The company reported quarterly EPS of $0.72 versus the $0.66 consensus estimate, while revenue rose 14.3% year over year to $2.36 billion.
• Franklin Resources pays a sizable dividend: Its quarterly dividend of $0.33 per share equals $1.32 annually and a 3.9% yield, though the payout ratio is high at 89.8%.

Shares of Franklin Resources, Inc. (NYSE:BEN - Get Free Report) have earned an average recommendation of "Hold" from the eleven brokerages that are covering the firm, MarketBeat reports. Two analysts have rated the stock with a sell rating, four have issued a hold rating, four have assigned a buy rating and one has issued a strong buy rating on the company. The average 12 month price target among analysts that have updated their coverage on the stock in the last year is $32.4444.

A number of equities analysts have issued reports on BEN shares. Morgan Stanley raised their target price on Franklin Resources from $31.00 to $34.00 and gave the stock an "equal weight" rating in a report on Friday, June 26th. JPMorgan Chase & Co. lifted their price objective on shares of Franklin Resources from $28.00 to $31.00 and gave the stock a "neutral" rating in a research note on Wednesday, April 29th. Deutsche Bank Aktiengesellschaft restated a "hold" rating and set a $34.00 price objective on shares of Franklin Resources in a report on Monday, August 3rd. Wall Street Zen upgraded shares of Franklin Resources from a "hold" rating to a "buy" rating in a report on Sunday, June 14th. Finally, Barclays lifted their price target on shares of Franklin Resources from $34.00 to $36.00 and gave the stock an "equal weight" rating in a research report on Monday, August 3rd.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. BlackRock Inc. acquired a new stake in shares of Franklin Resources during the second quarter worth about $961,845,000. Azora Capital LP acquired a new position in shares of Franklin Resources in the 2nd quarter valued at approximately $229,850,000. Bank of New York Mellon Corp acquired a new position in shares of Franklin Resources in the 2nd quarter valued at approximately $152,692,000. Norges Bank bought a new stake in Franklin Resources during the 4th quarter worth approximately $98,168,000. Finally, Squarepoint Ops LLC increased its stake in Franklin Resources by 188.2% during the 4th quarter. Squarepoint Ops LLC now owns 4,131,559 shares of the closed-end fund's stock worth $98,703,000 after purchasing an additional 2,697,743 shares in the last quarter. 47.56% of the stock is owned by institutional investors and hedge funds.

Franklin Resources Price Performance

BEN opened at $34.25 on Tuesday. The company has a fifty day moving average price of $33.32 and a two-hundred day moving average price of $29.52. The company has a debt-to-equity ratio of 1.22, a quick ratio of 1.48 and a current ratio of 1.48. The firm has a market capitalization of $17.40 billion, a PE ratio of 23.30, a P/E/G ratio of 0.72 and a beta of 1.55. Franklin Resources has a 52 week low of $21.10 and a 52 week high of $36.28.

Franklin Resources (NYSE:BEN - Get Free Report) last posted its quarterly earnings results on Friday, July 31st. The closed-end fund reported $0.72 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.66 by $0.06. The business had revenue of $2.36 billion for the quarter, compared to analyst estimates of $1.76 billion. Franklin Resources had a return on equity of 11.55% and a net margin of 8.72%.The firm's revenue was up 14.3% on a year-over-year basis. During the same period last year, the company earned $0.49 EPS. As a group, analysts anticipate that Franklin Resources will post 2.88 earnings per share for the current year.

Franklin Resources Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, July 10th. Investors of record on Monday, June 29th were paid a dividend of $0.33 per share. This represents a $1.32 annualized dividend and a yield of 3.9%. The ex-dividend date of this dividend was Monday, June 29th. Franklin Resources's dividend payout ratio (DPR) is presently 89.80%.

Franklin Resources Company 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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