Market Analysts see Franklin Resources Inc. [BEN] gaining to $36. Time to buy?

Franklin Resources Inc. [NYSE: BEN] price plunged by -1.91 percent to reach at -$0.62. The company report on June 28, 2021 that Western Asset Diversified Income Fund Raises $1.0 Billion in Initial Public Offering, Starts Trading on New York Stock Exchange.

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Franklin Templeton, one of the world’s largest asset managers, has announced that Western Asset Diversified Income Fund (the “Fund”) has raised $1,000,000,000 in its initial public offering (excluding any exercise of the underwriters’ option to purchase additional common shares). The Fund’s common shares began trading on Friday, June 25, 2021, on the New York Stock Exchange under the symbol “WDI,” and the offering is expected to close on Tuesday, June 29, 2021, subject to customary closing conditions.

The Fund sold 50,000,000 common shares at $20.00 per share, with Morgan Stanley, BofA Securities and Wells Fargo Securities acting as lead underwriters. In addition, the Fund has granted the underwriters an option to purchase an additional 6,833,830 common shares at the public offering price within 45 days of the date of the prospectus, June 24, 2021. If the underwriters exercise in full their option to purchase additional shares of the Fund, which may or may not occur, the Fund will have raised approximately $1,136,676,600 million.

A sum of 2795787 shares traded at recent session while its average daily volume was at 2.81M shares. Franklin Resources Inc. shares reached a high of $32.74 and dropped to a low of $31.75 until finishing in the latest session at $31.92.

The one-year BEN stock forecast points to a potential downside of -0.79. The average equity rating for BEN stock is currently 3.20, trading closer to a bullish pattern in the stock market.

Guru’s Opinion on Franklin Resources Inc. [BEN]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for BEN shares is $31.67 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on BEN stock is a recommendation set at 3.20. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

BMO Capital Markets have made an estimate for Franklin Resources Inc. shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on March 29, 2021. The new note on the price target was released on January 05, 2021, representing the official price target for Franklin Resources Inc. stock. Previously, the target price had yet another raise to $23, while Keefe Bruyette analysts kept a Mkt Perform rating on BEN stock. On October 19, 2020, analysts increased their price target for BEN shares from 24 to 28.

The Average True Range (ATR) for Franklin Resources Inc. is set at 0.77, with the Price to Sales ratio for BEN stock in the period of the last 12 months amounting to 2.29. The Price to Book ratio for the last quarter was 1.48, with the Price to Cash per share for the same quarter was set at 8.83. Price to Free Cash Flow for BEN in the course of the last twelve months was 19.98.

BEN Stock Performance Analysis:

Franklin Resources Inc. [BEN] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -0.84. With this latest performance, BEN shares dropped by -6.69% in over the last four-week period, additionally plugging by 27.48% over the last 6 months – not to mention a rise of 56.16% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for BEN stock in for the last two-week period is set at 41.50, with the RSI for the last a single of trading hit 37.76, and the three-weeks RSI is set at 45.07 for Franklin Resources Inc. [BEN]. The present Moving Average for the last 50 days of trading for this stock 32.91, while it was recorded at 32.45 for the last single week of trading, and 26.84 for the last 200 days.

Insight into Franklin Resources Inc. Fundamentals:

Operating Margin for any stock indicates how profitable investing would be, and Franklin Resources Inc. [BEN] shares currently have an operating margin of +24.25 and a Gross Margin at +66.68. Franklin Resources Inc.’s Net Margin is presently recorded at +14.10.

Return on Total Capital for BEN is now 9.43, given the latest momentum, and Return on Invested Capital for the company is 6.14. Return on Equity for this stock inclined to 7.83, with Return on Assets sitting at 4.51. When it comes to the capital structure of this company, Franklin Resources Inc. [BEN] has a Total Debt to Total Equity ratio set at 49.15. Additionally, BEN Total Debt to Total Capital is recorded at 32.95, with Total Debt to Total Assets ending up at 24.59. Long-Term Debt to Equity for the company is recorded at 47.06, with the Long-Term Debt to Total Capital now at 31.55.

Reflecting on the efficiency of the workforce at the company, Franklin Resources Inc. [BEN] managed to generate an average of $66,407 per employee. Receivables Turnover for the company is 5.45 with a Total Asset Turnover recorded at a value of 0.32.

BEN Stock EPS

With the latest financial reports released by the company, Franklin Resources Inc. posted 0.7/share EPS, while the average EPS was predicted by analysts to be reported at 0.55/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 27.30%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for BEN. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Franklin Resources Inc. go to 9.91%.

Franklin Resources Inc. [BEN] Insider Position Details

There are presently around $7,375 million, or 47.80% of BEN stock, in the hands of institutional investors. The top three institutional holders of BEN stocks are: VANGUARD GROUP INC with ownership of 31,932,593, which is approximately 1.413% of the company’s market cap and around 0.10% of the total institutional ownership; BLACKROCK INC., holding 27,403,208 shares of the stock with an approximate value of $891.7 million in BEN stocks shares; and STATE STREET CORP, currently with $886.12 million in BEN stock with ownership of nearly -0.626% of the company’s market capitalization.

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Positions in Franklin Resources Inc. stocks held by institutional investors increased at the end of May and at the time of the May reporting period, where 249 institutional holders increased their position in Franklin Resources Inc. [NYSE:BEN] by around 15,223,667 shares. Additionally, 249 investors decreased positions by around 19,266,868 shares, while 100 investors held positions by with 192,142,098 shares. The mentioned changes placed institutional holdings at 226,632,633 shares, according to the latest SEC report filing. BEN stock had 83 new institutional investments in for a total of 3,091,756 shares, while 51 institutional investors sold positions of 3,965,493 shares during the same period.

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