In a recent transaction, Charles B. Johnson, a significant shareholder of Franklin Resources Inc. (NYSE:BEN), acquired a substantial number of shares in the company. On June 21, Johnson purchased 200,000 shares of Franklin Resources at an average price range of $22.685 to $22.915, with a weighted average price of $22.7952 per share. This investment amounted to a total of approximately $4.56 million.
The purchase is a notable move by Johnson, who, as a ten percent owner, already holds a significant stake in the investment management firm. Following the transaction, Johnson's total direct ownership in Franklin Resources has increased to 88,703,192 shares. Additionally, he has indirect holdings through a 401(k) and an IRA, which amount to 23,689.7474 and 4,059,651 shares, respectively. These indirect holdings are managed as part of retirement accounts, with the 401(k) shares being part of the Franklin Templeton 401(k) Retirement Plan.
Franklin Resources, known for its global investment management services, continues to be a significant player in the financial sector. The acquisition by one of its major shareholders reaffirms confidence in the company's value and future prospects. As of the latest transaction, Johnson's total investment in Franklin Resources reflects his commitment and belief in the company's ongoing growth and performance.
In other recent news, Franklin Resources has maintained its quarterly cash dividend at $0.31 per share. However, the investment firm has seen a downward adjustment in stock price targets by TD Cowen, BofA Securities, and BMO Capital Markets, following a reported decline in second-quarter profits due to rising costs. Franklin Resources' earnings per share for the January-March quarter was reported at 56 cents, a decrease from the 61 cents reported in the previous year. This decline was attributed to increased expenses, particularly higher employee compensation.
Despite this, analysts from BMO Capital Markets and BofA Securities predict positive net flows for Franklin Resources in the latter half of 2024, bolstered by a larger institutional pipeline and allocations from Great-West Lifeco. However, BofA Securities also anticipates a return to net outflows by the fourth fiscal quarter due to seasonal factors. These are recent developments that investors should monitor closely as they reflect the current financial health of Franklin Resources.
InvestingPro Insights
As Charles B. Johnson demonstrates his unwavering confidence in Franklin Resources Inc. (NYSE:BEN) with a substantial share purchase, a look at some key InvestingPro Data and InvestingPro Tips can offer additional context to this strategic move.
InvestingPro Data indicates that Franklin Resources has a market capitalization of $12.18 billion, with a P/E ratio of 13.3, reflecting the market's valuation of the company relative to its earnings. The company's revenue for the last twelve months as of Q2 2024 stands at $8.099 billion, with a growth rate of 2.98%. This sustained revenue growth aligns with Johnson's investment, signaling potential for continued performance. Additionally, Franklin Resources boasts a strong dividend yield of 5.43%, underscoring its appeal to income-focused investors.
Turning to InvestingPro Tips, it's noteworthy that Franklin Resources has maintained dividend payments for an impressive 44 consecutive years, highlighting a track record of returning value to shareholders. Moreover, despite a recent price decline of 15.62% over the past three months, analysts remain optimistic, predicting that the company will be profitable this year. This is further corroborated by the fact that the company has been profitable over the last twelve months.
For investors intrigued by these insights, there are additional InvestingPro Tips available at https://www.investing.com/pro/BEN. These tips provide a deeper dive into the company's financial health and market position. Furthermore, by using the coupon code PRONEWS24, readers can enjoy an additional 10% off a yearly or biyearly Pro and Pro+ subscription, granting access to even more valuable investment information. Franklin Resources currently has a total of 6 additional InvestingPro Tips listed, which could further inform investment decisions and strategies.
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