B of A Securities Maintains Franklin Resources (BEN) Underperform Recommendation

Fintel reports that on April 5, 2023, B of A Securities maintained coverage of Franklin Resources (NYSE:BEN) with a Underperform recommendation.

Analyst Price Forecast Suggests 2.80% Upside

As of March 30, 2023, the average one-year price target for Franklin Resources is $27.35. The forecasts range from a low of $23.23 to a high of $35.70. The average price target represents an increase of 2.80% from its latest reported closing price of $26.61.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for Franklin Resources is $7,507MM, a decrease of 6.38%. The projected annual non-GAAP EPS is $2.50.

Franklin Resources Declares $0.30 Dividend

On February 7, 2023 the company declared a regular quarterly dividend of $0.30 per share ($1.20 annualized). Shareholders of record as of March 31, 2023 will receive the payment on April 14, 2023. Previously, the company paid $0.30 per share.

At the current share price of $26.61 / share, the stock's dividend yield is 4.51%. Looking back five years and taking a sample every week, the average dividend yield has been 3.96%, the lowest has been 2.67%, and the highest has been 7.06%. The standard deviation of yields is 0.90 (n=236).

The current dividend yield is 0.61 standard deviations above the historical average.

Additionally, the company's dividend payout ratio is 0.60. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company's 3-Year dividend growth rate is 0.11%, demonstrating that it has increased its dividend over time.

What are Other Shareholders Doing?

BEN / Franklin Resources, Inc. Shares Held by Institutions

Delta Investment Management holds 15K shares representing 0.00% ownership of the company. In it's prior filing, the firm reported owning 14K shares, representing an increase of 6.78%. The firm decreased its portfolio allocation in BEN by 1.50% over the last quarter.

MUTUAL OF AMERICA INVESTMENT CORP - All America Fund Class holds 1K shares representing 0.00% ownership of the company. In it's prior filing, the firm reported owning 1K shares, representing an increase of 4.40%. The firm increased its portfolio allocation in BEN by 22.62% over the last quarter.

CAVAX - Catholic Values Equity Fund Class F, effective 1-31-2017 holds 2K shares representing 0.00% ownership of the company. No change in the last quarter.

Guggenheim Active Allocation Fund holds 20K shares representing 0.00% ownership of the company. No change in the last quarter.

SFLNX - Schwab Fundamental US Large Company Index Fund Institutional Shares holds 177K shares representing 0.04% ownership of the company. In it's prior filing, the firm reported owning 173K shares, representing an increase of 2.39%. The firm increased its portfolio allocation in BEN by 27.71% over the last quarter.

What is the Fund Sentiment?

There are 1111 funds or institutions reporting positions in Franklin Resources. This is an increase of 20 owner(s) or 1.83% in the last quarter. Average portfolio weight of all funds dedicated to BEN is 0.15%, an increase of 1.99%. Total shares owned by institutions increased in the last three months by 6.14% to 280,714K shares. BEN / Franklin Resources, Inc. Put/Call Ratios The put/call ratio of BEN is 1.18, indicating a bearish outlook.

Franklin Resources Background Information
(This description is provided by the company.)

Franklin Resources, Inc. is a global investment management organization with subsidiaries operating as Franklin Templeton and serving clients in over 165 countries. Franklin Templeton's mission is to help clients achieve better outcomes through investment management expertise, wealth management and technology solutions. Through its specialist investment managers, the company brings extensive capabilities in equity, fixed income, multi-asset solutions and alternatives. With offices in more than 30 countries and approximately 1,300 investment professionals, the California-based company has over 70 years of investment experience. The company posts information that may be significant for investors in the Investor Relations and News Center sections of its website, and encourages investors to consult those sections regularly.

See all Franklin Resources regulatory filings.

This story originally appeared on Fintel.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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