Franklin Resources (NYSE:BEN) Stock Price Down 4.2% - Should You Sell?

Key Points

• Franklin Resources' stock fell 4.2% on Monday, with a trading price of $22.81, following a significant drop in trading volume by 78% compared to its average.
• Analysts have set mixed price targets for the stock, with JPMorgan Chase raising their target to $29 while Barclays set a target at $23, indicating varying outlooks on the stock's performance.
• The company recently announced a quarterly dividend of $0.32 per share, representing a 5.5% dividend yield, although its payout ratio is notably high at 250.98%.

Shares of Franklin Resources, Inc. (NYSE:BEN - Get Free Report) fell 4.2% during trading on Monday . The stock traded as low as $22.82 and last traded at $22.81. 972,204 shares changed hands during mid-day trading, a decline of 78% from the average session volume of 4,397,943 shares. The stock had previously closed at $23.80.

Analysts Set New Price Targets

Several research firms have issued reports on BEN. Barclays reaffirmed an "underweight" rating and set a $23.00 price target (up from $20.00) on shares of Franklin Resources in a research note on Monday, August 4th. JPMorgan Chase & Co. lifted their price objective on Franklin Resources from $22.00 to $29.00 and gave the company a "neutral" rating in a research report on Monday, August 4th. Zacks Research downgraded Franklin Resources from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, August 20th. Morgan Stanley lifted their price target on Franklin Resources from $20.00 to $21.00 and gave the company an "underweight" rating in a report on Tuesday, August 12th. Finally, Evercore ISI increased their price objective on shares of Franklin Resources from $24.00 to $25.00 and gave the stock an "underperform" rating in a report on Monday, August 4th. Four research analysts have rated the stock with a Buy rating, six have issued a Hold rating and five have given a Sell rating to the company's stock. According to data from MarketBeat.com, Franklin Resources presently has a consensus rating of "Reduce" and an average price target of $24.25.

Franklin Resources Trading Down 2.7%

The firm has a fifty day moving average of $24.67 and a 200-day moving average of $22.48. The company has a debt-to-equity ratio of 0.94, a quick ratio of 1.55 and a current ratio of 1.55. The stock has a market capitalization of $12.02 billion, a price-to-earnings ratio of 45.39, a P/E/G ratio of 1.57 and a beta of 1.50.

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

Franklin Resources Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, October 10th. Stockholders of record on Tuesday, September 30th will be given a dividend of $0.32 per share. This represents a $1.28 dividend on an annualized basis and a dividend yield of 5.5%. The ex-dividend date of this dividend is Tuesday, September 30th. Franklin Resources's payout ratio is presently 250.98%.

Institutional Investors Weigh In On Franklin Resources

Hedge funds and other institutional investors have recently bought and sold shares of the business. Capital A Wealth Management LLC grew its position in shares of Franklin Resources by 3,869.2% during the second quarter. Capital A Wealth Management LLC now owns 1,032 shares of the closed-end fund's stock worth $25,000 after buying an additional 1,006 shares in the last quarter. Total Investment Management Inc. acquired a new stake in shares of Franklin Resources in the 2nd quarter valued at about $27,000. Consultiva Wealth Management CORP. lifted its position in shares of Franklin Resources by 177.1% during the second quarter. Consultiva Wealth Management CORP. now owns 1,283 shares of the closed-end fund's stock worth $31,000 after purchasing an additional 820 shares during the last quarter. Manchester Capital Management LLC grew its stake in Franklin Resources by 49.9% in the first quarter. Manchester Capital Management LLC now owns 1,668 shares of the closed-end fund's stock worth $32,000 after purchasing an additional 555 shares in the last quarter. Finally, Signaturefd LLC increased its holdings in Franklin Resources by 39.4% in the first quarter. Signaturefd LLC now owns 2,592 shares of the closed-end fund's stock valued at $50,000 after buying an additional 732 shares during the last quarter. 47.56% of the stock is currently owned by hedge funds and other institutional investors.

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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