Franklin Resources (NYSE:BEN) Reaches New 12-Month High After Better-Than-Expected Earnings

Key Points

• Franklin Resources shares climbed to a new 52-week high after reporting Q1 EPS of $0.71 versus a $0.57 consensus and revenue of $1.75 billion (up 8.7% year‑over‑year), topping expectations.
• The firm paid a quarterly dividend of $0.33 (annualized $1.32), implying a 4.7% yield, but the dividend payout ratio is elevated at 122.22%.
• Analyst coverage is mixed and cautious: the MarketBeat consensus rating is "Reduce" with an average price target of $25.89, below the current share price, despite some firms maintaining buy calls or raising targets.

Franklin Resources, Inc. (NYSE:BEN - Get Free Report)'s stock price hit a new 52-week high during mid-day trading on Tuesday following a better than expected earnings announcement. The company traded as high as $28.59 and last traded at $28.3760, with a volume of 84799 shares. The stock had previously closed at $27.57.

The closed-end fund reported $0.71 earnings per share for the quarter, topping the consensus estimate of $0.57 by $0.14. Franklin Resources had a return on equity of 9.58% and a net margin of 6.97%.The business had revenue of $1.75 billion during the quarter, compared to analysts' expectations of $1.70 billion. During the same quarter last year, the business posted $0.47 EPS. The business's revenue was up 8.7% on a year-over-year basis.

Franklin Resources Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, April 10th. Shareholders of record on Tuesday, March 31st were issued a $0.33 dividend. The ex-dividend date was Tuesday, March 31st. This represents a $1.32 annualized dividend and a yield of 4.7%. Franklin Resources's dividend payout ratio is 122.22%.

Analysts Set New Price Targets

A number of equities research analysts have recently weighed in on the stock. Wall Street Zen lowered shares of Franklin Resources from a "buy" rating to a "hold" rating in a research note on Saturday, March 21st. Weiss Ratings raised shares of Franklin Resources from a "hold (c)" rating to a "hold (c+)" rating in a research note on Wednesday, April 22nd. Barclays raised their price objective on shares of Franklin Resources from $25.00 to $26.00 and gave the stock an "underweight" rating in a report on Friday, April 17th. TD Cowen reiterated a "buy" rating on shares of Franklin Resources in a report on Thursday, April 9th. Finally, Evercore set a $27.00 target price on Franklin Resources in a research note on Friday, April 10th. Three research analysts have rated the stock with a Buy rating, four have issued a Hold rating and four have assigned a Sell rating to the company. According to data from MarketBeat, Franklin Resources presently has a consensus rating of "Reduce" and an average price target of $25.89.

Institutional Investors Weigh In On Franklin Resources

Several institutional investors have recently modified their holdings of the business. Dimensional Fund Advisors LP raised its position in Franklin Resources by 8.1% in the 4th quarter. Dimensional Fund Advisors LP now owns 10,882,860 shares of the closed-end fund's stock worth $259,988,000 after buying an additional 816,952 shares during the last quarter. Invesco Ltd. lifted its stake in Franklin Resources by 8.2% during the 4th quarter. Invesco Ltd. now owns 10,122,937 shares of the closed-end fund's stock valued at $241,837,000 after acquiring an additional 768,707 shares during the period. Geode Capital Management LLC boosted its holdings in shares of Franklin Resources by 3.5% during the 4th quarter. Geode Capital Management LLC now owns 8,069,495 shares of the closed-end fund's stock valued at $192,774,000 after acquiring an additional 272,335 shares during the last quarter. ProShare Advisors LLC grew its stake in shares of Franklin Resources by 3.6% in the fourth quarter. ProShare Advisors LLC now owns 7,083,168 shares of the closed-end fund's stock worth $169,217,000 after acquiring an additional 243,836 shares during the period. Finally, Azora Capital LP raised its holdings in shares of Franklin Resources by 78.8% during the fourth quarter. Azora Capital LP now owns 5,796,575 shares of the closed-end fund's stock valued at $138,480,000 after purchasing an additional 2,554,105 shares during the last quarter. 47.56% of the stock is owned by hedge funds and other institutional investors.

Franklin Resources Price Performance

The stock has a market capitalization of $14.68 billion, a PE ratio of 25.90, a PEG ratio of 1.04 and a beta of 1.44. The firm's fifty day moving average price is $25.52 and its two-hundred day moving average price is $24.57. The company has a quick ratio of 1.86, a current ratio of 1.86 and a debt-to-equity ratio of 1.01.

About Franklin Resources

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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