Franklin Resources, Inc. (NYSE:BEN) Sees Large Increase in Short Interest

Franklin Resources, Inc. (NYSE:BEN) was the target of a large growth in short interest in the month of July. As of July 31st, there was short interest totalling 21,820,000 shares, a growth of 14.8% from the July 15th total of 19,000,000 shares. Based on an average daily volume of 3,650,000 shares, the days-to-cover ratio is currently 6.0 days. Currently, 7.7% of the company’s shares are sold short.

Franklin Resources Price Performance

Shares of BEN stock traded up $0.33 during trading hours on Friday, reaching $22.76. 3,197,662 shares of the company were exchanged, compared to its average volume of 3,696,125. The stock’s fifty day moving average is $22.56 and its two-hundred day moving average is $24.65. The company has a market cap of $11.97 billion, a price-to-earnings ratio of 13.01, a P/E/G ratio of 2.46 and a beta of 1.43. Franklin Resources has a fifty-two week low of $20.92 and a fifty-two week high of $30.32. The company has a debt-to-equity ratio of 0.93, a current ratio of 1.71 and a quick ratio of 1.82.

Franklin Resources (NYSE:BEN) last released its earnings results on Friday, July 26th. The closed-end fund reported $0.60 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.57 by $0.03. The company had revenue of $2.12 billion for the quarter, compared to the consensus estimate of $2.09 billion. Franklin Resources had a net margin of 10.24% and a return on equity of 10.60%. Sell-side analysts forecast that Franklin Resources will post 2.42 earnings per share for the current fiscal year.

Franklin Resources Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, July 12th. Stockholders of record on Friday, June 28th were given a dividend of $0.31 per share. The ex-dividend date of this dividend was Friday, June 28th. This represents a $1.24 annualized dividend and a dividend yield of 5.45%. Franklin Resources’s payout ratio is currently 70.86%.

Analyst Ratings Changes

A number of research analysts have commented on BEN shares. Evercore ISI lowered their target price on Franklin Resources from $29.00 to $26.00 and set an “underperform” rating on the stock in a research note on Tuesday, April 30th. BMO Capital Markets cut their price objective on shares of Franklin Resources from $27.00 to $26.00 and set a “market perform” rating on the stock in a research report on Monday, July 29th. TD Cowen boosted their target price on shares of Franklin Resources from $23.00 to $24.00 and gave the stock a “hold” rating in a research report on Monday, July 29th. Deutsche Bank Aktiengesellschaft cut their price target on shares of Franklin Resources from $24.00 to $23.00 and set a “hold” rating on the stock in a report on Monday, July 29th. Finally, Keefe, Bruyette & Woods lowered their target price on shares of Franklin Resources from $25.00 to $23.00 and set an “underperform” rating on the stock in a research report on Monday, July 29th. Three investment analysts have rated the stock with a sell rating and six have issued a hold rating to the stock. According to MarketBeat, Franklin Resources currently has a consensus rating of “Hold” and a consensus target price of $24.90.

Insider Activity at Franklin Resources

In other news, major shareholder Charles B. Johnson purchased 200,000 shares of the business’s stock in a transaction dated Friday, June 21st. The shares were acquired at an average price of $22.80 per share, for a total transaction of $4,560,000.00. Following the completion of the acquisition, the insider now directly owns 88,703,192 shares of the company’s stock, valued at $2,022,432,777.60. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 24.13% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Franklin Resources

Large investors have recently bought and sold shares of the company. Headlands Technologies LLC acquired a new position in shares of Franklin Resources in the first quarter valued at approximately $32,000. Principal Securities Inc. bought a new stake in shares of Franklin Resources during the 4th quarter worth approximately $35,000. Altshuler Shaham Ltd bought a new position in shares of Franklin Resources in the second quarter valued at $27,000. Sentry Investment Management LLC bought a new stake in shares of Franklin Resources in the 2nd quarter valued at about $30,000. Finally, Trust Co. of Vermont bought a new stake in Franklin Resources in the fourth quarter valued at approximately $45,000. Institutional investors own 47.56% of the company’s stock.

About Franklin Resources

Franklin Resources, Inc is a publicly owned asset management holding company. Through its subsidiaries, the firm provides its services to individuals, institutions, pension plans, trusts, and partnerships. It launches equity, fixed income, balanced, and multi-asset mutual funds through its subsidiaries.