In a recent transaction, Charles B. Johnson, a significant shareholder of Franklin Resources Inc. (NYSE:BEN), has increased his stake in the company through the purchase of 100,000 shares of common stock. The transaction, which took place on September 11, 2024, involved shares bought at a weighted average price of $19.0799, amounting to a total investment of approximately $1.9 million.
The shares were acquired in multiple transactions with prices ranging from $19.01 to $19.15. Following this purchase, Johnson's total direct holdings in Franklin Resources Inc. have reached 89,308,192 shares. Additionally, Johnson indirectly owns 24,941.1625 shares through a 401(k) and 4,059,651 shares through an IRA.
Investors often monitor the buying and selling activities of company insiders as these transactions can provide insights into the executives' confidence in the firm's future performance. The recent purchase by Johnson may be seen as a positive signal to the market, reflecting a strong belief in the company's value and prospects.
Franklin Resources Inc., known for its investment management services under the Franklin Templeton brand, has not provided any specific reason for this substantial purchase by Johnson. However, the details of the transaction are publicly available as per regulatory requirements.
For those interested in following the company's stock performance and insider transactions, Franklin Resources trades under the ticker BEN on the New York Stock Exchange.
In other recent news, Franklin Resources reported an adjusted operating income of $424.9 million in its recent earnings call, marking a 1.3% increase from the previous quarter. The company also recorded a 15% year-over-year increase in assets under management, concluding the quarter with $1.65 trillion. Amidst an SEC inquiry, Franklin Templeton, operating under Franklin Resources, closed its $2 billion Macro Opportunities fund, following the departure of Ken Leech from Western Asset Management. Michael Buchanan has since taken over as the sole chief investment officer of Western Asset Management. Analyst firms like TD Cowen and Barclays have provided differing views on the company, with TD Cowen maintaining a Hold rating and a price target of $24, while Barclays assigned an Underweight rating with a price target of $20.00. These assessments were made in light of the company's recent developments and ongoing challenges. Franklin Resources also launched the first U.S. exchange-traded funds tied to ether, alongside several other financial institutions, and maintained its quarterly cash dividend at $0.31 per share, a 3.3% increase from the same quarter of the previous year.
InvestingPro Insights
Charles B. Johnson's recent substantial share purchase in Franklin Resources Inc. (NYSE:BEN) aligns with several noteworthy aspects of the company's financial health and market performance as reflected in real-time data from InvestingPro. With a market capitalization of $10.45 billion, Franklin Resources appears to be a significant player in the investment management sector. Despite a challenging market environment, the company has maintained a consistent dividend, rewarding shareholders with a notable dividend yield of 6.3% as of the last twelve months leading up to Q3 2024. This commitment to returning value to shareholders is further underscored by the company's track record of 44 consecutive years of dividend payments, an InvestingPro Tip that underscores the firm's financial stability and investor-friendly approach.
From a valuation standpoint, Franklin Resources is trading at a P/E ratio of 12.36, which suggests that the stock may be trading at a high valuation relative to its near-term earnings growth. This is an important consideration for investors looking for growth opportunities. Furthermore, the company's stock is trading near its 52-week low, which could indicate a potential value opportunity for investors, as suggested by another InvestingPro Tip.
InvestingPro data also reveals that the company's revenue has grown by 5.78% over the last twelve months as of Q3 2024, indicating a steady increase in its core business operations. Additionally, Franklin Resources' liquid assets exceed its short-term obligations, which may provide a cushion against market volatility and unexpected financial challenges.
For investors seeking more in-depth analysis, there are additional InvestingPro Tips available, which can offer further insights into Franklin Resources' financial performance, stock valuation, and market position. With the next earnings date set for October 29, 2024, stakeholders and potential investors may want to keep an eye on how the company's financial results align with current market expectations.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.