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In a challenging market environment, Franklin Resources, Inc. (NYSE:BEN) stock has touched a 52-week low, reaching a price level of $18.94. The company maintains a robust 6.69% dividend yield and has consistently paid dividends for 44 consecutive years, according to InvestingPro data. This latest dip reflects a broader trend for the global investment management organization, which has seen a significant downturn over the past year. Investors have been cautious as the company's stock price has contracted by -32.96% over the one-year period, signaling a period of bearish sentiment towards the asset manager's performance and future prospects amidst a volatile financial landscape. With a beta of 1.44 and revenue growth of 8.01%, the stock currently appears undervalued based on InvestingPro's Fair Value analysis.
In other recent news, Franklin Resources has seen a mix of developments. The company reported a 22% increase in assets under management (AUM) to $1.68 trillion and an 8% rise in adjusted operating revenues to $6.6 billion for the fiscal year. However, it also disclosed net outflows totaling $32.6 billion and a decrease in performance fees from $383 million to $293 million. Amid these challenges, Goldman Sachs analyst Alexander Blostein upgraded Franklin Resources from Sell to Neutral, with a new price target set at $22.00. This shift reflects a change in perspective regarding the company's financial outlook.
TD Cowen, on the other hand, adjusted the company's outlook downward, reducing the price target from $20.00 to $18.50, due to concerns about Franklin's Western Asset Management Company division and potential client attrition in the fixed income segment. Franklin Resources also revealed a strategic shift, aiming to raise $100 billion in private markets over the next five years and significantly expand its ETF and Canvas AUM. The firm is investing in technology to improve client services and operational efficiency. These are recent developments that investors should consider.
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