Franklin Resources, Inc. (NYSE:BEN) Given Average Recommendation of “Reduce” by Analysts

Franklin Resources, Inc. (NYSE:BEN) has received a consensus recommendation of “Reduce” from the eleven analysts that are presently covering the company, Marketbeat Ratings reports. Four equities research analysts have rated the stock with a sell rating, five have assigned a hold rating and two have given a buy rating to the company. The average 1-year target price among analysts that have issued a report on the stock in the last year is $25.8889.

BEN has been the topic of several recent research reports. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Franklin Resources in a report on Monday, December 29th. Wall Street Zen upgraded Franklin Resources from a “hold” rating to a “buy” rating in a report on Saturday, January 31st. JPMorgan Chase & Co. decreased their target price on shares of Franklin Resources from $26.00 to $25.00 and set a “neutral” rating for the company in a research report on Monday, November 10th. Morgan Stanley boosted their price target on shares of Franklin Resources from $21.00 to $22.00 and gave the stock an “underweight” rating in a research report on Tuesday. Finally, Evercore ISI increased their price objective on shares of Franklin Resources from $26.00 to $28.00 and gave the stock an “underperform” rating in a research report on Monday.

Franklin Resources News Summary

Here are the key news stories impacting Franklin Resources this week:

• Positive Sentiment: Technical/market-momentum boost — Franklin earned a relative strength rating upgrade and reportedly “hit a key benchmark,” which can attract momentum and institutional buyers. Franklin Resources earns relative strength rating upgrade; hits key benchmark
• Positive Sentiment: Fund flows/AUM improvement — Assets under management rose ~1.4% in January on market moves and inflows, supporting revenue and fee outlooks. Franklin Resources AUM rises 1.4% in January on markets, inflows
• Positive Sentiment: Dividend support — BEN announced a quarterly dividend of $0.33 (annualized yield ~4.7%), which tends to support income-focused demand for the shares. (Company announcement)
• Positive Sentiment: Analyst bullishness / momentum coverage — Several outlets (Zacks, MSN pieces) highlight BEN as a momentum/long-term pick and note analysts growing more bullish on revenue, which can underpin share-price upside. Why Franklin Resources (BEN) is a Top Momentum Stock for the Long-Term
• Neutral Sentiment: Corporate governance routine — Shareholders approved equity plans and elected directors at the annual meeting; mostly procedural but ensures management continuity. Franklin Resources Shareholders Approve Equity Plans and Directors
• Negative Sentiment: Broker downgrade pressure — Barclays reiterated a sell rating and Morgan Stanley issued a sell, signaling institutional skepticism on BEN’s near-term prospects; such sell-side coverage can trigger selling and weigh on sentiment. Need To Know: Analysts Are Much More Bullish On Franklin Resources, Inc. (NYSE:BEN) Revenues Barclays Sticks to Its Sell Rating for Franklin Resources (BEN) Franklin Resources (BEN) Gets a Sell from Morgan Stanley
• Positive Sentiment: Independent bullish take — Evercore ISI reportedly expects BEN’s stock to rise, which may support buy-side interest among investors who follow that shop. Franklin Resources (NYSE:BEN) Stock Price Expected to Rise, Evercore ISI Analyst Says

Hedge Funds Weigh In On Franklin Resources

Institutional investors and hedge funds have recently modified their holdings of the business. Capital A Wealth Management LLC increased its stake in shares of Franklin Resources by 3,869.2% in the 2nd quarter. Capital A Wealth Management LLC now owns 1,032 shares of the closed-end fund’s stock valued at $25,000 after acquiring an additional 1,006 shares in the last quarter. Root Financial Partners LLC bought a new stake in Franklin Resources in the third quarter valued at $25,000. Danske Bank A S acquired a new position in shares of Franklin Resources during the fourth quarter valued at about $26,000. Total Investment Management Inc. bought a new position in shares of Franklin Resources during the 2nd quarter worth about $27,000. Finally, Rakuten Securities Inc. grew its stake in shares of Franklin Resources by 277.0% in the 4th quarter. Rakuten Securities Inc. now owns 1,150 shares of the closed-end fund’s stock valued at $27,000 after buying an additional 845 shares during the period. 47.56% of the stock is currently owned by institutional investors.

Franklin Resources Stock Down 3.4%

Shares of NYSE BEN opened at $26.90 on Friday. The company has a 50 day simple moving average of $24.67 and a 200 day simple moving average of $24.10. The company has a debt-to-equity ratio of 1.01, a current ratio of 1.86 and a quick ratio of 1.40. Franklin Resources has a 1 year low of $16.25 and a 1 year high of $27.94. The firm has a market cap of $14.01 billion, a PE ratio of 24.90, a price-to-earnings-growth ratio of 0.89 and a beta of 1.46.

Franklin Resources (NYSE:BEN) last posted its earnings results on Friday, January 30th. The closed-end fund reported $0.70 earnings per share for the quarter, topping analysts’ consensus estimates of $0.55 by $0.15. The firm had revenue of $1.75 billion for the quarter, compared to analyst estimates of $2.23 billion. Franklin Resources had a net margin of 6.97% and a return on equity of 9.58%. The company’s revenue for the quarter was up 3.4% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.59 EPS. On average, research analysts forecast that Franklin Resources will post 2.16 EPS for the current year.

Franklin Resources Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, April 10th. Stockholders of record on Tuesday, March 31st will be given a $0.33 dividend. The ex-dividend date of this dividend is Tuesday, March 31st. This represents a $1.32 annualized dividend and a dividend yield of 4.9%. Franklin Resources’s dividend payout ratio (DPR) is 122.22%.

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.