Franklin Resources (NYSE:BEN) Reaches New 52-Week High on Strong Earnings

Key Points

• Franklin Resources shares reached a new 52-week high of $35.28 after the company reported quarterly EPS of $0.72, beating estimates of $0.66, while revenue rose 14.3% year over year to $2.28 billion.
• The company paid a quarterly dividend of $0.33 per share, equal to an annualized $1.32 dividend and a 3.7% yield; its payout ratio stands at 89.8%.
• Analyst opinions remain mixed: the stock has an average “Hold” rating and a $32.25 price target, despite some recent upgrades and higher targets, including TD Cowen’s $40 “Buy” target.

Franklin Resources, Inc. (NYSE:BEN - Get Free Report)'s share price hit a new 52-week high on Monday following a stronger than expected earnings report. The company traded as high as $35.28 and last traded at $35.2190, with a volume of 727080 shares. The stock had previously closed at $33.86.

The closed-end fund reported $0.72 EPS for the quarter, topping analysts' consensus estimates of $0.66 by $0.06. The business had revenue of $2.28 billion during the quarter, compared to analysts' expectations of $1.76 billion. Franklin Resources had a return on equity of 11.52% and a net margin of 8.72%.The firm's quarterly revenue was up 14.3% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.49 earnings per share.

Franklin Resources Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, July 10th. Stockholders of record on Monday, June 29th were given a dividend of $0.33 per share. This represents a $1.32 annualized dividend and a dividend yield of 3.7%. The ex-dividend date was Monday, June 29th. Franklin Resources's payout ratio is presently 89.80%.

Wall Street Analyst Weigh In

A number of analysts recently weighed in on the stock. JPMorgan Chase & Co. increased their price target on shares of Franklin Resources from $28.00 to $31.00 and gave the company a "neutral" rating in a research report on Wednesday, April 29th. Zacks Research upgraded shares of Franklin Resources from a "hold" rating to a "strong-buy" rating in a report on Monday, June 22nd. Barclays increased their target price on shares of Franklin Resources from $34.00 to $36.00 and gave the stock an "equal weight" rating in a report on Monday. TD Cowen lifted their price target on shares of Franklin Resources from $37.00 to $40.00 and gave the stock a "buy" rating in a research report on Monday, June 22nd. Finally, Wall Street Zen raised shares of Franklin Resources from a "hold" rating to a "buy" rating in a report on Sunday, June 14th. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, three have issued a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Hold" and an average price target of $32.25.

Institutional Trading of Franklin Resources

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Danske Bank A S acquired a new position in Franklin Resources during the fourth quarter valued at approximately $26,000. Rakuten Securities Inc. raised its stake in shares of Franklin Resources by 277.0% during the 4th quarter. Rakuten Securities Inc. now owns 1,150 shares of the closed-end fund's stock worth $27,000 after purchasing an additional 845 shares in the last quarter. Motiv8 Investments LLC acquired a new stake in shares of Franklin Resources in the 4th quarter valued at approximately $28,000. Leonteq Securities AG acquired a new stake in shares of Franklin Resources in the 4th quarter valued at approximately $30,000. Finally, Atlas Capital Advisors Inc. bought a new position in shares of Franklin Resources in the fourth quarter valued at $32,000. Institutional investors and hedge funds own 47.56% of the company's stock.

Franklin Resources Stock Performance

The company has a quick ratio of 1.87, a current ratio of 1.87 and a debt-to-equity ratio of 1.10. The stock's fifty day moving average is $32.67 and its two-hundred day moving average is $28.85. The firm has a market capitalization of $18.34 billion, a price-to-earnings ratio of 24.05, a P/E/G ratio of 0.75 and a beta of 1.54.

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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