Franklin Resources (NYSE:BEN) Sets New 12-Month High – Should You Buy?

Franklin Resources, Inc. (NYSE:BEN)’s share price reached a new 52-week high during trading on Thursday . The company traded as high as $26.08 and last traded at $26.0550, with a volume of 787521 shares trading hands. The stock had previously closed at $25.63.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently weighed in on the company. Wall Street Zen downgraded shares of Franklin Resources from a “buy” rating to a “hold” rating in a report on Sunday, December 14th. Cowen reissued a “buy” rating on shares of Franklin Resources in a research report on Wednesday, January 7th. BMO Capital Markets started coverage on shares of Franklin Resources in a report on Friday, October 3rd. They issued an “outperform” rating and a $26.00 price target for the company. Evercore ISI lowered their price objective on shares of Franklin Resources from $25.00 to $23.00 and set an “underperform” rating for the company in a research note on Thursday, October 9th. Finally, TD Cowen cut their target price on Franklin Resources from $31.00 to $30.00 and set a “buy” rating on the stock in a research report on Wednesday. Four research analysts have rated the stock with a Buy rating, five have given a Hold rating and five have assigned a Sell rating to the stock. According to data from MarketBeat.com, Franklin Resources presently has an average rating of “Reduce” and an average target price of $24.64.

Franklin Resources Stock Performance

The firm’s fifty day moving average price is $23.42 and its two-hundred day moving average price is $23.93. The stock has a market capitalization of $13.61 billion, a PE ratio of 28.70, a price-to-earnings-growth ratio of 1.33 and a beta of 1.44. The company has a current ratio of 1.40, a quick ratio of 1.40 and a debt-to-equity ratio of 0.95.

Franklin Resources (NYSE:BEN) last released its quarterly earnings data on Friday, November 7th. The closed-end fund reported $0.67 earnings per share for the quarter, beating analysts’ consensus estimates of $0.57 by $0.10. Franklin Resources had a net margin of 5.98% and a return on equity of 9.12%. The company had revenue of $1.82 billion during the quarter, compared to analysts’ expectations of $2.17 billion. During the same quarter in the previous year, the company earned $0.59 earnings per share. The firm’s revenue for the quarter was up 6.0% on a year-over-year basis. As a group, equities research analysts forecast that Franklin Resources, Inc. will post 2.16 EPS for the current year.

Franklin Resources Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, January 9th. Shareholders of record on Tuesday, December 30th were issued a $0.33 dividend. The ex-dividend date of this dividend was Tuesday, December 30th. This is an increase from Franklin Resources’s previous quarterly dividend of $0.32. This represents a $1.32 annualized dividend and a yield of 5.1%. Franklin Resources’s dividend payout ratio is 145.05%.

Institutional Investors Weigh In On Franklin Resources

Several institutional investors and hedge funds have recently added to or reduced their stakes in BEN. Capital A Wealth Management LLC lifted its holdings in 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 valued at $25,000 after purchasing an additional 1,006 shares in the last quarter. Root Financial Partners LLC purchased a new position in Franklin Resources in the 3rd quarter valued at about $25,000. Total Investment Management Inc. acquired a new stake in Franklin Resources in the 2nd quarter worth about $27,000. Consultiva Wealth Management CORP. increased its stake in Franklin Resources by 177.1% during the 2nd quarter. Consultiva Wealth Management CORP. now owns 1,283 shares of the closed-end fund’s stock worth $31,000 after buying an additional 820 shares in the last quarter. Finally, EverSource Wealth Advisors LLC raised its holdings in shares of Franklin Resources by 129.1% during the third quarter. EverSource Wealth Advisors LLC now owns 1,313 shares of the closed-end fund’s stock valued at $30,000 after acquiring an additional 740 shares during the last quarter. Hedge funds and other institutional investors own 47.56% of the company’s stock.

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.