Franklin Resources, Inc. (NYSE:BEN) Sees Significant Growth in Short Interest

Franklin Resources, Inc. (NYSE:BEN) was the target of a large increase in short interest in August. As of August 31st, there was short interest totalling 26,460,000 shares, an increase of 12.7% from the August 15th total of 23,480,000 shares. Currently, 9.4% of the shares of the stock are sold short. Based on an average daily trading volume, of 4,400,000 shares, the short-interest ratio is currently 6.0 days.

Insider Buying and Selling

In related news, major shareholder Charles B. Johnson purchased 200,000 shares of Franklin Resources stock in a transaction that occurred on Friday, June 21st. The shares were acquired at an average price of $22.80 per share, for a total transaction of $4,560,000.00. Following the transaction, the insider now directly owns 88,703,192 shares in the company, valued at $2,022,432,777.60. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. In other Franklin Resources news, CEO Jennifer M. Johnson bought 18,900 shares of the business’s stock in a transaction on Friday, August 23rd. The shares were bought at an average cost of $20.95 per share, for a total transaction of $395,955.00. Following the transaction, the chief executive officer now owns 216,900 shares in the company, valued at approximately $4,544,055. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, major shareholder Charles B. Johnson bought 200,000 shares of the business’s stock in a transaction on Friday, June 21st. The shares were acquired at an average price of $22.80 per share, for a total transaction of $4,560,000.00. Following the completion of the transaction, the insider now owns 88,703,192 shares in the company, valued at approximately $2,022,432,777.60. The disclosure for this purchase can be found here. Insiders have purchased a total of 431,600 shares of company stock worth $9,097,637 in the last 90 days. Corporate insiders own 24.13% of the company’s stock.

Hedge Funds Weigh In On Franklin Resources

Several hedge funds have recently made changes to their positions in the business. Vanguard Group Inc. grew its stake in shares of Franklin Resources by 11.1% during the 1st quarter. Vanguard Group Inc. now owns 35,889,477 shares of the closed-end fund’s stock worth $1,008,853,000 after acquiring an additional 3,592,943 shares in the last quarter. Power Corp of Canada boosted its holdings in shares of Franklin Resources by 18,266.0% in the 1st quarter. Power Corp of Canada now owns 31,557,117 shares of the closed-end fund’s stock valued at $887,071,000 after buying an additional 31,385,293 shares during the last quarter. Capital Research Global Investors boosted its holdings in shares of Franklin Resources by 17.9% in the 4th quarter. Capital Research Global Investors now owns 26,652,644 shares of the closed-end fund’s stock valued at $793,983,000 after buying an additional 4,043,808 shares during the last quarter. ProShare Advisors LLC boosted its holdings in shares of Franklin Resources by 10.5% in the 2nd quarter. ProShare Advisors LLC now owns 7,095,390 shares of the closed-end fund’s stock valued at $158,582,000 after buying an additional 676,760 shares during the last quarter. Finally, Dimensional Fund Advisors LP boosted its holdings in shares of Franklin Resources by 1.7% in the 2nd quarter. Dimensional Fund Advisors LP now owns 3,183,950 shares of the closed-end fund’s stock valued at $71,171,000 after buying an additional 54,063 shares during the last quarter. 47.56% of the stock is owned by institutional investors.

Franklin Resources Price Performance

NYSE BEN opened at $20.35 on Wednesday. The stock has a market cap of $10.71 billion, a price-to-earnings ratio of 11.63, a PEG ratio of 2.45 and a beta of 1.39. Franklin Resources has a 52-week low of $18.94 and a 52-week high of $30.32. The business has a 50 day simple moving average of $21.60 and a 200 day simple moving average of $23.59. The company has a debt-to-equity ratio of 0.93, a quick ratio of 1.71 and a current ratio of 1.71.

Franklin Resources (NYSE:BEN) last issued its quarterly earnings results on Friday, July 26th. The closed-end fund reported $0.60 earnings per share for the quarter, topping the consensus estimate of $0.57 by $0.03. The company had revenue of $2.12 billion during the quarter, compared to analysts’ expectations of $2.09 billion. Franklin Resources had a net margin of 10.24% and a return on equity of 10.60%. Analysts anticipate that Franklin Resources will post 2.41 earnings per share for the current fiscal year.

Franklin Resources Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, October 11th. Stockholders of record on Monday, September 30th will be paid a dividend of $0.31 per share. The ex-dividend date of this dividend is Monday, September 30th. This represents a $1.24 annualized dividend and a dividend yield of 6.09%. Franklin Resources’s dividend payout ratio is currently 70.86%.

Analyst Ratings Changes

A number of research analysts have issued reports on the stock. Barclays assumed coverage on shares of Franklin Resources in a research report on Tuesday, August 27th. They set an “underweight” rating and a $20.00 target price on the stock. Keefe, Bruyette & Woods reiterated an “underperform” rating and issued a $23.00 price target on shares of Franklin Resources in a research report on Thursday, August 22nd. TD Cowen increased their price target on shares of Franklin Resources from $23.00 to $24.00 and gave the company a “hold” rating in a research report on Monday, July 29th. Wells Fargo & Company initiated coverage on shares of Franklin Resources in a research report on Thursday, September 12th. They issued an “equal weight” rating and a $20.00 price target on the stock. Finally, Deutsche Bank Aktiengesellschaft cut their price target on shares of Franklin Resources from $24.00 to $23.00 and set a “hold” rating on the stock in a research report on Monday, July 29th. Four research analysts have rated the stock with a sell rating and six have issued a hold rating to the company. According to data from MarketBeat, Franklin Resources presently has a consensus rating of “Hold” and an average price target of $23.00.

About Franklin Resources

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.