Franklin Resources, Inc. to Post FY2019 Earnings of $2.58 Per Share, Jefferies Financial Group Forecasts (NYSE:BEN)

Franklin Resources, Inc. (NYSE:BEN) – Investment analysts at Jefferies Financial Group dropped their FY2019 earnings estimates for Franklin Resources in a report released on Tuesday, October 8th. Jefferies Financial Group analyst D. Fannon now expects that the closed-end fund will post earnings per share of $2.58 for the year, down from their previous forecast of $2.59. Jefferies Financial Group also issued estimates for Franklin Resources’ Q4 2019 earnings at $0.66 EPS, Q1 2020 earnings at $0.67 EPS, Q2 2020 earnings at $0.68 EPS, Q3 2020 earnings at $0.70 EPS, Q4 2020 earnings at $0.72 EPS, FY2020 earnings at $2.77 EPS and FY2021 earnings at $3.06 EPS.

Franklin Resources (NYSE:BEN) last issued its earnings results on Tuesday, July 30th. The closed-end fund reported $0.48 EPS for the quarter, missing analysts’ consensus estimates of $0.63 by ($0.15). The business had revenue of $1.48 billion during the quarter, compared to analysts’ expectations of $1.48 billion. Franklin Resources had a return on equity of 13.43% and a net margin of 23.80%. Franklin Resources’s revenue for the quarter was down 5.3% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.75 EPS.

Other equities analysts have also recently issued research reports about the stock. Morgan Stanley decreased their target price on shares of Franklin Resources from $31.00 to $28.00 and set an “underweight” rating on the stock in a research report on Tuesday. ValuEngine cut shares of Franklin Resources from a “hold” rating to a “sell” rating in a research report on Saturday, August 10th. Citigroup lifted their target price on shares of Franklin Resources from $35.00 to $37.00 and gave the stock a “neutral” rating in a research report on Tuesday, July 9th. JPMorgan Chase & Co. upgraded shares of Franklin Resources from an “underweight” rating to a “neutral” rating and set a $32.00 target price on the stock in a research report on Thursday, September 12th. Finally, Barclays reiterated a “sell” rating and issued a $24.00 target price on shares of Franklin Resources in a research report on Wednesday. Eight analysts have rated the stock with a sell rating, four have assigned a hold rating and one has issued a buy rating to the company’s stock. The stock currently has an average rating of “Sell” and a consensus target price of $29.35.

Shares of NYSE:BEN opened at $27.32 on Thursday. The stock has a market cap of $13.87 billion, a PE ratio of 8.56, a PEG ratio of 1.36 and a beta of 1.24. The company’s fifty day moving average is $27.68 and its 200 day moving average is $32.03. Franklin Resources has a 52 week low of $25.57 and a 52 week high of $35.82. The company has a quick ratio of 3.35, a current ratio of 3.35 and a debt-to-equity ratio of 0.07.

The company also recently disclosed a quarterly dividend, which was paid on Friday, October 11th. Shareholders of record on Monday, September 30th were given a $0.26 dividend. This represents a $1.04 dividend on an annualized basis and a dividend yield of 3.81%. The ex-dividend date was Friday, September 27th. Franklin Resources’s payout ratio is 32.60%.

In other Franklin Resources news, EVP Craig Steven Tyle sold 5,000 shares of the business’s stock in a transaction dated Tuesday, September 3rd. The shares were sold at an average price of $26.01, for a total value of $130,050.00. Following the transaction, the executive vice president now owns 100,009 shares in the company, valued at $2,601,234.09. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 22.20% of the stock is currently owned by insiders.

Several hedge funds have recently added to or reduced their stakes in the business. Cambridge Investment Research Advisors Inc. increased its position in shares of Franklin Resources by 15.6% during the first quarter. Cambridge Investment Research Advisors Inc. now owns 14,093 shares of the closed-end fund’s stock valued at $467,000 after buying an additional 1,898 shares during the period. First Trust Advisors LP increased its position in shares of Franklin Resources by 1.9% during the first quarter. First Trust Advisors LP now owns 1,173,178 shares of the closed-end fund’s stock valued at $38,879,000 after buying an additional 21,834 shares during the period. Envestnet Asset Management Inc. increased its position in shares of Franklin Resources by 33.7% during the first quarter. Envestnet Asset Management Inc. now owns 165,368 shares of the closed-end fund’s stock valued at $5,480,000 after buying an additional 41,702 shares during the period. Northwestern Mutual Wealth Management Co. increased its position in shares of Franklin Resources by 19.9% during the first quarter. Northwestern Mutual Wealth Management Co. now owns 4,201 shares of the closed-end fund’s stock valued at $140,000 after buying an additional 696 shares during the period. Finally, State of Wisconsin Investment Board increased its position in shares of Franklin Resources by 31.7% during the first quarter. State of Wisconsin Investment Board now owns 398,470 shares of the closed-end fund’s stock valued at $13,205,000 after buying an additional 95,999 shares during the period. Hedge funds and other institutional investors own 50.46% of the company’s stock.

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.

Further Reading: Net Margin

Earnings History and Estimates for Franklin Resources (NYSE:BEN)

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