Franklin Resources Inc. [BEN] fell -23.71% so far this year. What now?



Franklin Resources Inc. [NYSE: BEN] gained 0.87% or 0.22 points to close at $25.55 with a heavy trading volume of 7039794 shares. The company report on May 3, 2022 that Franklin Resources, Inc. Announces Second Quarter Results.

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Franklin Resources, Inc. (the “Company”) [NYSE: BEN] today announced net income1 of $349.6 million or $0.68 per diluted share for the quarter ended March 31, 2022, as compared to $453.2 million or $0.88 per diluted share for the previous quarter, and $381.8 million or $0.74 per diluted share for the quarter ended March 31, 2021. Operating income was $463.0 million for the quarter ended March 31, 2022, as compared to $557.7 million for the previous quarter and $456.3 million for the prior year.

As supplemental information, the Company is providing certain adjusted performance measures which are based on methodologies other than generally accepted accounting principles. Adjusted net income2 was $491.6 million and adjusted diluted earnings per share2 was $0.96 for the quarter ended March 31, 2022, as compared to $553.6 million and $1.08 for the previous quarter, and $403.5 million and $0.79 for the quarter ended March 31, 2021. Adjusted operating income2 was $576.6 million for the quarter ended March 31, 2022, as compared to $685.9 million for the previous quarter and $581.1 million for the prior year.

It opened the trading session at $25.07, the shares rose to $26.36 and dropped to $24.93, the range by which the price of stock traded the whole day. The daily chart for BEN points out that the company has recorded -27.31% loss over the past six months. However, it is still -4.5% lower than its most recent low trading price.

If we look at the average trading volume of 3.22M shares, BEN reached to a volume of 7039794 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 $30.11 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 2.90. 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.

Keefe Bruyette have made an estimate for Franklin Resources Inc. shares, keeping their opinion on the stock as Mkt Perform, with their previous recommendation back on April 12, 2022. While these analysts kept the previous recommendation, Citigroup dropped their target price from $44.50 to $28. The new note on the price target was released on April 12, 2022, representing the official price target for Franklin Resources Inc. stock. Previously, the target price had yet another raise to $38, while BMO Capital Markets analysts kept a Market Perform rating on BEN stock.

The Average True Range (ATR) for Franklin Resources Inc. is set at 0.89, with the Price to Sales ratio for BEN stock in the period of the last 12 months amounting to 1.56. The Price to Book ratio for the last quarter was 1.08, 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 28.79.

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 -0.89. With this latest performance, BEN shares dropped by -8.52% in over the last four-week period, additionally sinking by -27.31% over the last 6 months – not to mention a drop of -20.26% 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 42.04, with the RSI for the last a single of trading hit 43.20, and the three-weeks RSI is set at 41.56 for Franklin Resources Inc. [BEN]. The present Moving Average for the last 50 days of trading for this stock 27.35, while it was recorded at 25.41 for the last single week of trading, and 31.01 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 +25.52 and a Gross Margin at +71.09. Franklin Resources Inc.’s Net Margin is presently recorded at +20.59.

Return on Total Capital for BEN is now 11.81, given the latest momentum, and Return on Invested Capital for the company is 10.47. Return on Equity for this stock inclined to 16.44, with Return on Assets sitting at 7.90. When it comes to the capital structure of this company, Franklin Resources Inc. [BEN] has a Total Debt to Total Equity ratio set at 67.62. Additionally, BEN Total Debt to Total Capital is recorded at 40.34, with Total Debt to Total Assets ending up at 31.40. Long-Term Debt to Equity for the company is recorded at 65.81, with the Long-Term Debt to Total Capital now at 39.26.

Reflecting on the efficiency of the workforce at the company, Franklin Resources Inc. [BEN] managed to generate an average of $170,243 per employee. Receivables Turnover for the company is 6.48 with a Total Asset Turnover recorded at a value of 0.38.

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 -1.64%.

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

There are presently around $5,600 million, or 45.40% of BEN stock, in the hands of institutional investors. The top three institutional holders of BEN stocks are: VANGUARD GROUP INC with ownership of 32,682,023, which is approximately 0.37% of the company’s market cap and around 18.70% of the total institutional ownership; STATE STREET CORP, holding 27,532,069 shares of the stock with an approximate value of $697.39 million in BEN stocks shares; and BLACKROCK INC., currently with $684.3 million in BEN stock with ownership of nearly 3.588% of the company’s market capitalization.

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 283 institutional holders increased their position in Franklin Resources Inc. [NYSE:BEN] by around 14,699,410 shares. Additionally, 253 investors decreased positions by around 13,014,374 shares, while 93 investors held positions by with 193,361,766 shares. The mentioned changes placed institutional holdings at 221,075,550 shares, according to the latest SEC report filing. BEN stock had 80 new institutional investments in for a total of 2,561,049 shares, while 56 institutional investors sold positions of 2,477,937 shares during the same period.