Franklin Resources Inc. (NYSE: BEN) stock jumped 0.22% on Friday to $27.63 against a previous-day closing price of $27.57. With 1.88 million shares changed hands, the volume of the stock remained lighter than its average volume of 3.03 million shares. During the session, the Asset Management company that operates in wider Financial sector, reached to the highest price of $27.78 whereas the lowest price it dropped to was $27.32. The 52-week range on BEN shows that it touched its highest point at $38.27 and its lowest point at $22.61 during that stretch. It currently has a 1-year price target of $24.56. With its current market cap of 12.80 billion, BEN has annualized dividend of $1.16 while the current yield stands at 4.20%. Beta for the stock currently stands at 1.20.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of BEN was up-trending over the past week, with a rise of 4.03%, but this was up by 16.63% over a month. Three-month performance surged to 3.10% while six-month performance fell -14.09%. The stock lost -9.71% in the past year, while it has lost -17.50% so far this year. A look at the trailing 12-month EPS for BEN yields 3.37 with Next year EPS estimates of 2.96. For the next quarter, that number is 0.73. This implies an EPS growth rate of 124.60% for this year and -16.57% for next year. EPS is expected to decline by -0.83% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 4.00%.
Float and Shares Shorts:
At present, 487.50 million BEN shares are outstanding with a float of 285.04 million shares on hand for trading. On Jul 14, 2022, short shares totaled 17.36 million, which was 3.47% higher than short shares on Jun 14, 2022. In addition to Mr. Gregory Eugene Johnson CPA, CPA as the firm’s Exec. Chairman, Ms. Jennifer M. Johnson serves as its Pres, CEO & Director.
Through their ownership of 46.29% of BEN’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 45.84% of BEN, in contrast to 28.96% held by mutual funds. Shares owned by individuals account for 16.81%. As the largest shareholder in BEN with 6.58% of the stake, The Vanguard Group, Inc. holds 32,888,581 shares worth 32,888,581. A second-largest stockholder of BEN, SSgA Funds Management, Inc., holds 27,203,247 shares, controlling over 5.44% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in BEN, holding 21,599,408 shares or 4.32% stake. With a 2.77% stake in BEN, the SPDR S&P Dividend ETF is the largest stakeholder. A total of 13,859,782 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 1.77% of BEN stock, is the second-largest Mutual Fund holder. It holds 8,828,822 shares valued at 205.8 million. iShares Tr. – Select Dividend ETF holds 1.42% of the stake in BEN, owning 7,098,086 shares worth 165.46 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for BEN since 12 analysts follow the stock currently. There are 0 analysts who recommend BUY ratings, while 4 suggest SELL ratings. Of the remaining analysts, 7 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With BEN analysts setting a high price target of $28.00 and a low target of $21.00, the average target price over the next 12 months is $25.00. Based on these targets, BEN could surge 1.34% to reach the target high and fall by -24.0% to reach the target low. Reaching the average price target will result in a decline of -9.52% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. BEN will report FY 2022 earnings on 10/31/2022. Analysts have provided yearly estimates in a range of $3.82 being high and $3.41 being low. For BEN, this leads to a yearly average estimate of $3.59. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Franklin Resources Inc. surprised analysts by $0.09 when it reported $0.82 EPS against a consensus estimate of $0.73. The surprise factor in the prior quarter was $0.15. Based on analyst estimates, the high estimate for the next quarter is $0.97 and the low estimate is $0.64. The average estimate for the next quarter is thus $0.75.
Summary of Insider Activity:
Insiders traded BEN stock several times over the past three months with 0 Buys and 1 Sells. In these transactions, 0 shares were bought while 3,135 shares were sold. The number of buy transactions has increased to 24 while that of sell transactions has risen to 14 over the past year. The total number of shares bought during that period was 587,098 while 159,884 shares were sold.