Fintel reports that on August 1, 2023, Goldman Sachs maintained coverage of Franklin Resources (NYSE:BEN) with a Sell recommendation.
Analyst Price Forecast Suggests 14.19% Downside
As of July 6, 2023, the average one-year price target for Franklin Resources is 25.09. The forecasts range from a low of 20.20 to a high of $29.40. The average price target represents a decrease of 14.19% from its latest reported closing price of 29.24.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Franklin Resources is 7,507MM, a decrease of 3.78%. The projected annual non-GAAP EPS is 2.50.
Franklin Resources Declares $0.30 Dividend
On June 8, 2023 the company declared a regular quarterly dividend of $0.30 per share ($1.20 annualized). Shareholders of record as of June 30, 2023 received the payment on July 14, 2023. Previously, the company paid $0.30 per share.
At the current share price of $29.24 / share, the stock's dividend yield is 4.10%.
Looking back five years and taking a sample every week, the average dividend yield has been 4.08%, the lowest has been 2.68%, and the highest has been 7.06%. The standard deviation of yields is 0.85 (n=235).
The current dividend yield is 0.03 standard deviations above the historical average.
Additionally, the company's dividend payout ratio is 0.73. 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 is the Fund Sentiment?
There are 1115 funds or institutions reporting positions in Franklin Resources. This is an increase of 11 owner(s) or 1.00% in the last quarter. Average portfolio weight of all funds dedicated to BEN is 0.14%, a decrease of 5.31%. Total shares owned by institutions increased in the last three months by 0.28% to 278,177K shares. 
The put/call ratio of BEN is 0.83, indicating a bullish outlook.
What are Other Shareholders Doing?
Capital Research Global Investors holds 22,341K shares representing 4.46% ownership of the company. In it's prior filing, the firm reported owning 18,003K shares, representing an increase of 19.42%. The firm increased its portfolio allocation in BEN by 19.67% over the last quarter.
AMRMX - AMERICAN MUTUAL FUND holds 13,069K shares representing 2.61% ownership of the company. In it's prior filing, the firm reported owning 10,784K shares, representing an increase of 17.48%. The firm increased its portfolio allocation in BEN by 3.53% over the last quarter.
SDY - SPDR(R) S&P(R) Dividend ETF holds 12,584K shares representing 2.51% ownership of the company. In it's prior filing, the firm reported owning 17,286K shares, representing a decrease of 37.36%. The firm decreased its portfolio allocation in BEN by 23.35% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 9,278K shares representing 1.85% ownership of the company. In it's prior filing, the firm reported owning 9,102K shares, representing an increase of 1.89%. The firm decreased its portfolio allocation in BEN by 3.88% over the last quarter.
DVY - iShares Select Dividend ETF holds 7,401K shares representing 1.48% ownership of the company. In it's prior filing, the firm reported owning 7,437K shares, representing a decrease of 0.49%. The firm decreased its portfolio allocation in BEN by 5.13% over the last quarter.
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.
Additional reading:
- Press Release dated July 28, 2023 issued by Franklin Resources, Inc. Announces Third Quarter Results
- Exhibit 10.1 Published CUSIP Number: 35462DAG3 (Deal) 35462DAH1 (Revolving Facility) CREDIT AGREEMENT dated as of July 25, 2023 among FRANKLIN RESOURCES, INC., as the Borrower, BANK OF AMERICA, N.A., as Administrative Agent, the Lenders party hereto,
- Franklin Resources, Inc. Announces Second Quarter Results
- Franklin Resources, Inc. Announces First Quarter Results
- Representative Forms of Notice of Restricted Stock Unit Award and Restricted Stock Unit Award Agreement (RSU) under our 2002 Universal Stock Incentive Plan for certain time-based awards to executive officers of Registrant (
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.
