Franklin Resources executive buys $1.98m in company stock

In a recent transaction, Charles B. Johnson, a key shareholder of Franklin Resources Inc. (NYSE:BEN), has increased his stake in the company with the purchase of 100,000 shares of common stock. The transaction, which took place on August 29, involved a weighted average price of $19.842 per share, amounting to a total investment of $1.98 million.

The shares were acquired in multiple transactions at prices ranging from $19.585 to $19.965. This latest acquisition brings Johnson's total direct holdings in Franklin Resources to 89,208,192 shares. Additionally, Johnson indirectly owns shares through a 401(k) and an IRA, with 23,941.1625 shares in the former and 4,059,651 shares in the latter.

Investors often keep an eye on purchases and sales of stock by executives as they can provide insights into the leadership's confidence in the company's future performance. Charles B. Johnson's significant investment in Franklin Resources reaffirms his position as a major stakeholder and his continued commitment to the company.

Franklin Resources, known for its investment management services under the Franklin Templeton brand, has a diverse portfolio of investment vehicles catering to clients worldwide. The company's stock performance and strategic decisions are closely monitored by investors, making transactions by executives like Johnson noteworthy events in the financial community.

The details of the transactions, including the range of prices at which the stock was bought, are available upon request from the company, any security holder of the issuer, or the staff of the Securities Exchange Commission. This transparency ensures that all interested parties have access to the specifics of the transaction, should they wish to obtain them.

In other recent news, Franklin Resources has experienced various significant developments. The company reported an adjusted operating income of $424.9 million in its recent earnings call, marking a 1.3% increase from the previous quarter, and a 15% year-over-year increase in assets under management, concluding the quarter with $1.65 trillion. Amidst an SEC inquiry, Franklin Templeton closed its $2 billion Macro Opportunities fund, following Ken Leech's departure from Western Asset Management. In his stead, Michael Buchanan has been appointed as the sole chief investment officer of Western Asset Management.

Analysts' opinions on Franklin Resources have varied. Barclays initiated coverage on Franklin Resources with an Underweight rating and a price target of $20.00, indicating a mixed financial outlook for the company. TD Cowen maintained a Hold rating on Franklin Resources, raising the price target to $24. Conversely, BMO Capital lowered its price target to $26 due to concerns about the company's financial performance.

Franklin Templeton, along with several other financial institutions, launched the first U.S. exchange-traded funds tied to ether. This significant step marks a milestone in integrating digital assets into the broader financial sector. Lastly, the company maintained its quarterly cash dividend at $0.31 per share, a 3.3% increase from the same quarter of the previous year. These recent developments reflect the dynamic environment in which Franklin Resources operates.

InvestingPro Insights

In light of Charles B. Johnson’s recent purchase of Franklin Resources Inc. (NYSE:BEN) shares, investors considering this company will find the following insights from InvestingPro valuable. With a current market capitalization of $10.41 billion, Franklin Resources appears to be navigating through challenging market conditions.

One of the InvestingPro Tips highlights that Franklin Resources is trading near its 52-week low, which may have been a factor in Johnson’s decision to increase his stake. The company’s stock price closed at $19.97, down significantly over various time frames, with a six-month price total return of -25.38%. This suggests that Johnson may see current prices as an attractive entry point.

Another relevant InvestingPro Tip is that Franklin Resources pays a significant dividend to shareholders. With a dividend yield of 6.21% as of the last twelve months ending Q3 2024, the company not only offers a substantial income stream for investors but has also maintained dividend payments for 44 consecutive years, indicating a strong commitment to returning value to shareholders.

From the data provided, the P/E ratio stands at 12.37, which, according to another InvestingPro Tip, is high relative to near-term earnings growth. This may signify that the market has priced in the potential for future earnings expansion or that investors are willing to pay a premium for the company's stable dividend history and financial health.

For those interested in further insights and tips, InvestingPro offers additional analysis and metrics to help investors make more informed decisions. There are more tips available on InvestingPro's platform for Franklin Resources Inc., which can be accessed at https://www.investing.com/pro/BEN.

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