Franklin Resources (NYSE:BEN) Shares Gap Up Following Earnings Beat

Franklin Resources, Inc. (NYSE:BEN) shares gapped up before the market opened on Friday after the company announced better than expected quarterly earnings. The stock had previously closed at $20.15, but opened at $20.80. Franklin Resources shares last traded at $20.28, with a volume of 477,998 shares traded.

The closed-end fund reported $0.59 EPS for the quarter, beating analysts’ consensus estimates of $0.56 by $0.03. Franklin Resources had a return on equity of 9.62% and a net margin of 5.48%.

Franklin Resources Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, January 10th. Shareholders of record on Monday, December 30th were paid a dividend of $0.32 per share. The ex-dividend date of this dividend was Monday, December 30th. This represents a $1.28 annualized dividend and a yield of 6.33%. This is an increase from Franklin Resources’s previous quarterly dividend of $0.31. Franklin Resources’s payout ratio is presently 148.84%.

Analysts Set New Price Targets

A number of equities research analysts have recently commented on BEN shares. JPMorgan Chase & Co. cut their price objective on Franklin Resources from $21.00 to $19.00 and set a “neutral” rating for the company in a research report on Thursday, January 16th. Barclays decreased their target price on Franklin Resources from $21.00 to $19.00 and set an “underweight” rating for the company in a research report on Friday, January 17th. UBS Group dropped their target price on shares of Franklin Resources from $24.00 to $21.00 and set a “neutral” rating on the stock in a research report on Tuesday, October 22nd. TD Cowen decreased their price target on shares of Franklin Resources from $20.00 to $18.50 and set a “hold” rating on the stock in a research note on Tuesday, November 5th. Finally, The Goldman Sachs Group upgraded shares of Franklin Resources from a “sell” rating to a “neutral” rating and boosted their price target for the company from $21.00 to $22.00 in a research report on Monday, January 6th. Four research analysts have rated the stock with a sell rating and eight have assigned a hold rating to the company’s stock. Based on data from MarketBeat.com, Franklin Resources presently has an average rating of “Hold” and a consensus target price of $20.18.

Institutional Investors Weigh In On Franklin Resources

Several institutional investors and hedge funds have recently added to or reduced their stakes in BEN. Virtu Financial LLC acquired a new position in Franklin Resources during the third quarter valued at approximately $880,000. FORA Capital LLC bought a new position in shares of Franklin Resources in the third quarter valued at $1,857,000. Principal Financial Group Inc. increased its holdings in Franklin Resources by 9.3% during the third quarter. Principal Financial Group Inc. now owns 381,192 shares of the closed-end fund’s stock worth $7,681,000 after buying an additional 32,490 shares during the last quarter. Charles Schwab Investment Management Inc. raised its position in Franklin Resources by 44.7% during the third quarter. Charles Schwab Investment Management Inc. now owns 2,998,574 shares of the closed-end fund’s stock worth $60,421,000 after acquiring an additional 925,590 shares in the last quarter. Finally, Swedbank AB lifted its stake in Franklin Resources by 78.3% in the third quarter. Swedbank AB now owns 62,076 shares of the closed-end fund’s stock valued at $1,251,000 after acquiring an additional 27,259 shares during the last quarter. 47.56% of the stock is owned by institutional investors.

Franklin Resources Trading Up 0.4 %

The company has a debt-to-equity ratio of 0.92, a quick ratio of 1.63 and a current ratio of 1.63. The business’s 50-day moving average price is $20.85 and its 200 day moving average price is $21.01. The company has a market cap of $10.60 billion, a P/E ratio of 23.54, a P/E/G ratio of 1.35 and a beta of 1.41.

Franklin Resources Company Profile

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.