Franklin Resources Inc. [BEN] Stock trading around $29.77 per share: What’s Next?

Franklin Resources Inc. [NYSE: BEN] gained 0.74% or 0.22 points to close at $29.77 with a heavy trading volume of 3793727 shares. The company report on August 2, 2021 that Templeton Global Income Fund (“GIM”) Announces Distribution.

Templeton Global Income Fund [NYSE: GIM] announced a monthly distribution from net investment income of $0.0369 per share, payable on August 31, 2021, to shareholders of record on August 16, 2021 (Ex-Dividend Date: August 13, 2021).

The Fund’s Board authorized a managed distribution plan pursuant to which the Fund will make monthly distributions to shareholders at an annual minimum fixed rate of 7.5%, based on the average monthly net asset value (NAV) of the Fund’s common shares (the “Plan”). The Fund will calculate the average NAV from the previous month based on the number of business days in the month on which the NAV is calculated. The Plan is intended to provide shareholders with a constant, but not guaranteed, fixed minimum rate of distribution each month and is intended to narrow the discount between the market price and the NAV of the Fund’s common shares, but there can be no assurance that the Plan will be successful in doing so. The Fund is managed with a goal of generating as much of the distribution as possible from net ordinary income and short-term capital gains, that is consistent with the Fund’s investment strategy and risk profile. To the extent that sufficient distributable income is not available on a monthly basis, the Fund will distribute long-term capital gains and/or return of capital in order to maintain its managed distribution rate. A return of capital may occur, for example, when some or all of the money that was invested in the Fund is paid back to shareholders. A return of capital distribution does not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”. Even though the Fund may realize current year capital gains, such gains may be offset, in whole or in part, by the Fund’s capital loss carryovers from prior years. The Plan is subject to periodic review by the Board and may be amended or terminated at any time.

It opened the trading session at $29.88, the shares rose to $30.51 and dropped to $29.59, the range by which the price of stock traded the whole day. The daily chart for BEN points out that the company has recorded 12.00% gains over the past six months. However, it is still -65.66% lower than its most recent low trading price.

If we look at the average trading volume of 2.89M shares, BEN reached to a volume of 3793727 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about 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 $31.75 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 0.84, with the Price to Sales ratio for BEN stock in the period of the last 12 months amounting to 2.20. The Price to Book ratio for the last quarter was 1.38, with the Price to Cash per share for the same quarter was set at 8.58. Price to Free Cash Flow for BEN in the course of the last twelve months was 19.17.

Trading performance analysis for BEN stock

Franklin Resources Inc. [BEN] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -0.30. With this latest performance, BEN shares dropped by -7.72% in over the last four-week period, additionally plugging by 12.00% over the last 6 months – not to mention a rise of 41.43% 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 43.57, with the RSI for the last a single of trading hit 45.94, and the three-weeks RSI is set at 43.60 for Franklin Resources Inc. [BEN]. The present Moving Average for the last 50 days of trading for this stock 32.20, while it was recorded at 29.55 for the last single week of trading, and 27.93 for the last 200 days.

Franklin Resources Inc. [BEN]: A deeper dive into fundamental analysis

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.

Franklin Resources Inc. [BEN]: An earnings per share (EPS) analysis

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 11.10%.

An analysis of insider ownership at Franklin Resources Inc. [BEN]

There are presently around $6,742 million, or 47.10% 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 $815.79 million in BEN stocks shares; and STATE STREET CORP, currently with $810.68 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 August and at the time of the August reporting period, where 258 institutional holders increased their position in Franklin Resources Inc. [NYSE:BEN] by around 15,229,527 shares. Additionally, 245 investors decreased positions by around 19,074,885 shares, while 96 investors held positions by with 192,152,657 shares. The mentioned changes placed institutional holdings at 226,457,069 shares, according to the latest SEC report filing. BEN stock had 73 new institutional investments in for a total of 2,886,462 shares, while 48 institutional investors sold positions of 3,912,979 shares during the same period.

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