Franklin Resources (NYSE:BEN) Reaches New 12-Month High After Strong Earnings

Franklin Resources, Inc. (NYSE:BEN)’s share price hit a new 52-week high during mid-day trading 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 trading hands. The stock had previously closed at $33.86.

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

Franklin Resources Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, July 10th. Shareholders of record on Monday, June 29th were given a dividend of $0.33 per share. This represents a $1.32 dividend on an annualized basis and a yield of 3.7%. The ex-dividend date of this dividend was Monday, June 29th. Franklin Resources’s payout ratio is 89.80%.

Wall Street Analysts Forecast Growth

A number of analysts have recently issued reports on the company. Zacks Research raised Franklin Resources from a “hold” rating to a “strong-buy” rating in a research report on Monday, June 22nd. TD Cowen increased their price target on Franklin Resources from $37.00 to $40.00 and gave the company a “buy” rating in a research note on Monday, June 22nd. JPMorgan Chase & Co. raised their price target on Franklin Resources from $28.00 to $31.00 and gave the company a “neutral” rating in a report on Wednesday, April 29th. Barclays lifted their price objective on shares of Franklin Resources from $34.00 to $36.00 and gave the stock an “equal weight” rating in a research report on Monday. Finally, The Goldman Sachs Group increased their price objective on shares of Franklin Resources from $30.50 to $34.00 and gave the company a “buy” rating in a research report on Wednesday, April 29th. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, three have assigned a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, Franklin Resources currently has a consensus rating of “Hold” and an average price target of $32.25.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in BEN. Tema ETFs LLC boosted its stake in shares of Franklin Resources by 8.4% in the second quarter. Tema ETFs LLC now owns 5,635 shares of the closed-end fund’s stock valued at $187,000 after buying an additional 435 shares during the period. Redhawk Wealth Advisors Inc. bought a new stake in shares of Franklin Resources during the 2nd quarter valued at $908,000. Czech National Bank grew its holdings in shares of Franklin Resources by 4.3% during the 2nd quarter. Czech National Bank now owns 87,266 shares of the closed-end fund’s stock worth $2,903,000 after purchasing an additional 3,588 shares in the last quarter. Dynamic Advisor Solutions LLC bought a new position in shares of Franklin Resources in the second quarter worth $272,000. Finally, GAMMA Investing LLC raised its stake in Franklin Resources by 14.5% in the second quarter. GAMMA Investing LLC now owns 18,605 shares of the closed-end fund’s stock valued at $619,000 after purchasing an additional 2,350 shares in the last quarter. Institutional investors and hedge funds own 47.56% of the company’s stock.

Franklin Resources Price 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 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. The business’s 50 day simple moving average is $32.67 and its 200-day simple moving average is $28.85.

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.