Franklin Resources (NYSE:BEN) Rating Lowered to "Hold" at Zacks Research

Key Points

• Franklin Resources (NYSE:BEN) was downgraded from a "strong-buy" to a "hold" rating by Zacks Research.
• Several investment firms have raised their target prices for Franklin Resources, with Barclays setting a target at $23.00 while Goldman Sachs increased it to $29.00.
• Institutional investors currently own 47.56% of Franklin Resources, with notable increases in holdings reported by multiple firms during the previous quarters.

Zacks Research downgraded shares of Franklin Resources (NYSE:BEN - Free Report) from a strong-buy rating to a hold rating in a report published on Wednesday, August 20th,Zacks.com reports.

BEN has been the topic of several other reports. TD Cowen raised Franklin Resources from a "hold" rating to a "buy" rating and set a $27.00 price objective on the stock in a research report on Wednesday, May 14th. Barclays restated an "underweight" rating and set a $23.00 target price (up from $20.00) on shares of Franklin Resources in a research note on Monday, August 4th. The Goldman Sachs Group upgraded Franklin Resources from a "neutral" rating to a "buy" rating and set a $29.00 target price for the company in a research note on Friday, June 27th. JPMorgan Chase & Co. boosted their price objective on Franklin Resources from $22.00 to $29.00 and gave the company a "neutral" rating in a report on Monday, August 4th. Finally, Cowen restated a "buy" rating on shares of Franklin Resources in a research note on Monday, June 16th. Three investment analysts have rated the stock with a Buy rating, six have given a Hold rating and five have issued a Sell rating to the company. According to MarketBeat.com, Franklin Resources currently has a consensus rating of "Reduce" and a consensus price target of $23.58.

Franklin Resources Price Performance

NYSE:BEN traded up $0.31 during trading hours on Wednesday, reaching $25.60. 1,201,297 shares of the company traded hands, compared to its average volume of 4,470,629. The firm's 50-day moving average is $24.53 and its 200-day moving average is $21.63. The stock has a market cap of $13.29 billion, a P/E ratio of 50.21, a P/E/G ratio of 1.47 and a beta of 1.46. The company has a debt-to-equity ratio of 0.94, a current ratio of 1.55 and a quick ratio of 1.55. Franklin Resources has a 1-year low of $16.25 and a 1-year high of $26.08.

Franklin Resources (NYSE:BEN - Get Free Report) last issued its quarterly earnings results on Friday, August 1st. The closed-end fund reported $0.49 earnings per share for the quarter, topping analysts' consensus estimates of $0.46 by $0.03. The company had revenue of $2.06 billion for the quarter, compared to analyst estimates of $2.38 billion. Franklin Resources had a return on equity of 8.76% and a net margin of 3.73%.The business's revenue for the quarter was down 2.2% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.60 EPS. Equities research analysts expect that Franklin Resources will post 2.16 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Azora Capital LP acquired a new stake in shares of Franklin Resources during the second quarter worth approximately $76,051,000. Evergreen Quality Fund GP Ltd. lifted its position in Franklin Resources by 99.1% in the 1st quarter. Evergreen Quality Fund GP Ltd. now owns 5,237,650 shares of the closed-end fund's stock valued at $100,825,000 after acquiring an additional 2,607,460 shares in the last quarter. Norges Bank bought a new stake in Franklin Resources during the 2nd quarter worth about $60,618,000. Two Sigma Advisers LP lifted its position in Franklin Resources by 173.7% during the 4th quarter. Two Sigma Advisers LP now owns 3,531,700 shares of the closed-end fund's stock worth $71,658,000 after buying an additional 2,241,500 shares in the last quarter. Finally, Holocene Advisors LP bought a new stake in shares of Franklin Resources in the 2nd quarter valued at about $51,384,000. Institutional investors own 47.56% of the company's stock.

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.