Franklin Resources (NYSE:BEN) Announces Earnings Results

Key Points

• Franklin Resources reported a Q1 EPS of $0.49, exceeding analysts' expectations of $0.46, but experienced a 2.2% decline in revenue year-over-year.
• The company announced a quarterly dividend of $0.32 per share, reflecting a 5.4% yield and a payout ratio of 188.24%.
• On the stock market, Franklin Resources shares fell by 0.4% to $23.91, with a consensus rating of "Hold" and a target price of $21.92 among analysts.

Franklin Resources (NYSE:BEN - Get Free Report) released its earnings results on Friday. The closed-end fund reported $0.49 EPS for the quarter, topping analysts' consensus estimates of $0.46 by $0.03, Briefing.com reports. Franklin Resources had a return on equity of 9.13% and a net margin of 4.65%. The company's revenue for the quarter was down 2.2% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.60 EPS.

Franklin Resources Stock Down 0.4%

NYSE BEN traded down $0.09 during trading on Friday, hitting $23.91. 6,594,184 shares of the company traded hands, compared to its average volume of 4,611,339. Franklin Resources has a 12 month low of $16.25 and a 12 month high of $25.36. The business has a fifty day simple moving average of $23.37 and a 200 day simple moving average of $21.00. The company has a current ratio of 1.95, a quick ratio of 1.95 and a debt-to-equity ratio of 0.93. The company has a market capitalization of $12.57 billion, a P/E ratio of 35.20, a PEG ratio of 1.75 and a beta of 1.45.

Franklin Resources Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, July 11th. Shareholders of record on Friday, June 27th were issued a dividend of $0.32 per share. This represents a $1.28 annualized dividend and a yield of 5.4%. The ex-dividend date was Friday, June 27th. Franklin Resources's dividend payout ratio (DPR) is 188.24%.

Hedge Funds Weigh In On Franklin Resources

Institutional investors have recently bought and sold shares of the stock. Woodline Partners LP increased its stake in shares of Franklin Resources by 41.1% in the first quarter. Woodline Partners LP now owns 26,189 shares of the closed-end fund's stock worth $504,000 after purchasing an additional 7,634 shares during the period. Jones Financial Companies Lllp grew its position in Franklin Resources by 169.3% during the first quarter. Jones Financial Companies Lllp now owns 7,909 shares of the closed-end fund's stock worth $152,000 after buying an additional 4,972 shares in the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in shares of Franklin Resources by 26.2% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 148,049 shares of the closed-end fund's stock worth $2,850,000 after acquiring an additional 30,763 shares in the last quarter. 47.56% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

A number of brokerages have recently weighed in on BEN. Barclays increased their price target on Franklin Resources from $19.00 to $20.00 and gave the stock an "underweight" rating in a research report on Wednesday, July 16th. Cowen restated a "buy" rating on shares of Franklin Resources in a research report on Monday, June 16th. Bank of America lowered their target price on Franklin Resources from $20.00 to $17.00 and set an "underperform" rating on the stock in a research report on Thursday, April 3rd. Wells Fargo & Company raised their target price on Franklin Resources from $21.50 to $26.00 and gave the company an "equal weight" rating in a research report on Friday, July 11th. Finally, The Goldman Sachs Group upgraded Franklin Resources from a "neutral" rating to a "buy" rating and set a $29.00 target price on the stock in a research report on Friday, June 27th. Five analysts have rated the stock with a sell rating, six have given a hold rating and three have issued a buy rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of $21.92.

About Franklin Resources

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.

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