Is It Worthwhile For Investors To Follow These Insider Trades On Franklin Resources Inc. (BEN)?

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Franklin Resources Inc. (NYSE:BEN) traded with an addition of $0.64 to close at $26.80 on Thursday, an upside of 2.43 percent. An average of 2,336,405 shares of common stock have been traded in the last five days. There was a fall of -$0.08 in the past week, and it reached a new high 8 times over the past 12 months. The last 20 days have seen an average of 3,258,351 shares traded, while the 50-day average volume stands at 3,385,475.

BEN stock has increased by 0.54% in the last month. The company shares reached their 1-month lowest point of $25.41 on 12/16/22. With the stock rallying to its 52-week high on 01/12/22, shares of the company touched a low of $20.24 and a high of $36.45 in 52 weeks. It has reached a new high 7 times so far this year and lost -21.89% or -$6.67 in price. In spite of this, the price is down -26.49% from the 52-week high.


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Insider Transactions

BEN stock investors should be aware that Franklin Resources Inc. (BEN) stock had its last reported insider trading activity 135 days ago on Nov 08. In this transaction, the insider spent $1,587,211. Executive Vice President, Plafker Jed A., disposed of 19,166 shares at a price of $29.02 on Aug 12. The insider now owns more than $556,188 worth of shares.

Valuation Metrics

Franklin Resources Inc. (BEN) has a trailing price-to-earnings (P/E) ratio of 10.35. The stock’s beta is 1.23. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 1.56, the price-to-book (PB) ratio at 1.11, and the price-to-cash flow ratio at 10.08.

The company has a payout ratio of 45.40%. The company’s most recent quarterly dividend payment was $0.30 a share, representing a up of 3.45% from $0.29 last year. Its latest increase dividend $0.01 reported on Tuesday December 13 2022.

Financial Health

Further, the company has a long term debt to equity ratio of 0.77 and a total debt to equity ratio of 0.77 for the quarter ending September 29. Its gross profit as reported stood at $1.77 billion compared to revenue of $8.28 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Franklin Resources Inc.’s return on assets was 4.60%.

Earnings Surprise

For the three-month period that ended September 29, Franklin Resources Inc. had $3.38 billion in total debt. In the quarter under review, the net income was down than the previous quarter. The company posted a net income of $232.7 million in the quarter, while revenues of $256.4 million were shrunk -186.08%. The analyst consensus anticipated Franklin Resources Inc.’s latest quarter earnings to come in at $0.67 per share, but it turned out to be $0.78, a 16.40% surprise. For the quarter, EBITDA amounted to $472.2 million. At the end of the quarter ending September 29, Franklin Resources Inc.’s stock balance sheet showed total debt was $3.9 billion. Shareholders own equity worth $499.56 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Franklin Resources Inc. (BEN) price momentum. RSI 9-day as of the close on 28 December was 54.08%, suggesting the stock is Neutral, with historical volatility in this time frame at 28.84%.

As of today, BEN’s price is $26.67 -0.32% or -$0.08 from its 5-day moving average. BEN is currently trading +0.06% higher than its 20-day SMA and -3.68% lower than its 100-day SMA. However, the stock’s current price level is +19.12% above the SMA50 and -0.54% below the SMA200.

The stochastic %K and %D were 35.97% and 38.38%, respectively, and the average true range (ATR) was 0.79. With the 14-day stochastic at 41.64% and the average true range at 0.81, the RSI (14) stands at 54.38%. The stock has reached 0.21 on the 9-day MACD Oscillator while the 14-day reading was at 0.04.

Analyst Ratings

Wells Fargo launched coverage on Franklin Resources Inc. (NYSE: BEN) in its analyst report released on December 15, 2022. The firm assigned the stock an Underweight rating. The consensus rating for Franklin Resources Inc. (BEN) among analysts is Underweight. According to current brokerage recommendations, 5 brokerage firms advise that investors sell BEN, while 8 suggest investors hold. There are 2 analysts who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 0 others rate it as a “buy”.

What is BEN’s price target for the next 12 months?

Analysts predict a range of price targets between $19.00 and $27.00, with a median target of $23.00. Taking a look at these predictions, the average price target given by analysts for Franklin Resources Inc. (BEN) stock is $22.62.

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