why Franklin Resources Inc. [BEN] is a Good Choice for Investors After New Price Target of $24.00

Franklin Resources Inc. [NYSE: BEN] loss -1.26% or -0.27 points to close at $21.11 with a heavy trading volume of 3756523 shares. The company report on October 11, 2022 that Franklin Resources, Inc. Announces Month-End Assets Under Management.

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Franklin Resources, Inc. (Franklin Templeton) (NYSE: BEN) today reported preliminary month-end assets under management (AUM) of $1,297.4 billion at September 30, 2022, compared to $1,387.6 billion at August 31, 2022. This month’s decrease in AUM reflected the impact of negative markets and long-term net outflows. Long-term net outflows include a $2.0 billion fixed income institutional redemption that had minimal impact on revenue.

For the quarter ended September 30, 2022, AUM reflected the negative impact of markets and long-term net outflows of $20.4 billion inclusive of the above mentioned $2.0 billion fixed income institutional redemption.

It opened the trading session at $21.29, the shares rose to $21.42 and dropped to $20.74, the range by which the price of stock traded the whole day. The daily chart for BEN points out that the company has recorded -18.08% loss over the past six months. However, it is still 0.42% lower than its most recent low trading price.

If we look at the average trading volume of 2.80M shares, BEN reached to a volume of 3756523 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 $24.00 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 3.40. 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.

BofA Securities have made an estimate for Franklin Resources Inc. shares, keeping their opinion on the stock as Underperform, with their previous recommendation back on September 08, 2022. While these analysts kept the previous recommendation, Goldman raised their target price to Sell. The new note on the price target was released on June 29, 2022, representing the official price target for Franklin Resources Inc. stock.

The Average True Range (ATR) for Franklin Resources Inc. is set at 0.78, with the Price to Sales ratio for BEN stock in the period of the last 12 months amounting to 1.30. The Price to Book ratio for the last quarter was 0.89, with the Price to Cash per share for the same quarter was set at 8.56. Price to Free Cash Flow for BEN in the course of the last twelve months was 12.03.

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 -9.48. With this latest performance, BEN shares dropped by -14.33% in over the last four-week period, additionally sinking by -18.08% over the last 6 months – not to mention a drop of -26.93% 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 30.25, with the RSI for the last a single of trading hit 28.01, and the three-weeks RSI is set at 32.62 for Franklin Resources Inc. [BEN]. The present Moving Average for the last 50 days of trading for this stock 25.44, while it was recorded at 21.80 for the last single week of trading, and 27.18 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 1.38%.

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

There are presently around $4,806 million, or 47.50% of BEN stock, in the hands of institutional investors. The top three institutional holders of BEN stocks are: VANGUARD GROUP INC with ownership of 34,261,767, which is approximately 0.555% of the company’s market cap and around 0.50% of the total institutional ownership; STATE STREET CORP, holding 32,525,128 shares of the stock with an approximate value of $686.61 million in BEN stocks shares; and BLACKROCK INC., currently with $628.0 million in BEN stock with ownership of nearly 2.916% of the company’s market capitalization.

Positions in Franklin Resources Inc. stocks held by institutional investors increased at the end of October and at the time of the October reporting period, where 285 institutional holders increased their position in Franklin Resources Inc. [NYSE:BEN] by around 20,065,195 shares. Additionally, 251 investors decreased positions by around 12,273,083 shares, while 92 investors held positions by with 195,313,914 shares. The mentioned changes placed institutional holdings at 227,652,192 shares, according to the latest SEC report filing. BEN stock had 64 new institutional investments in for a total of 4,072,950 shares, while 80 institutional investors sold positions of 3,217,113 shares during the same period.


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