Think Twice Before Hating Franklin Resources, Inc. (BEN) Stock

On December 03, 2019, Franklin Resources, Inc. (NYSE:BEN) shares lost -2.22% or -0.6 points to close at $26.38 with a thin trading volume of 3.242 million shares. It opened the trading session at $26.58, the shares rose to $26.605 and dropped to $26.06, the range by which the price of stock traded the whole day. The company now has a market cap of $13.3 billion and currently has 505.14 million outstanding shares. Franklin Resources, Inc. (BEN) stock has plunged -5.95 percent of market value in 21 trading days.

BEN stock’s trailing 3-year beta is 1.22, meaning there will be a greater rate of return, although posing a higher risk. The part of a firm’s profit given to each outstanding share of regular stock was $2.35 share in the trailing 52 weeks. The stock’s value fallen -11.06 percent year to date (YTD) compared to a decline of -22.16 percent in 52 week’s period. The firm’s shares are still trading -26.35 percent below its 1-year high of $35.82 and 3.17 percent up from 52-week low of $25.57. The average consensus ranking on the company is 3.6, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a hold.

Franklin Resources, Inc. (BEN) is most likely going to rise -1.44 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $31-month high price target. This represents a whopping 17.51 percent increase from the current trading of shares. The 52-week median price target given by the analysts is $27.5, which means a return possibility of 4.25 percent in comparison with the closing price of the stock of $26.38 on December 03. The lowest price set for the stock is $16 — just above -39.35 percent from BEN share price now.

Let’s take a glimpse at some insider activity at Franklin Resources, Inc. (NYSE:BEN) and observe the pattern. The earliest insider trade happened on 12/02/2019. Tyle Craig Steven parted with a total of 5 thousand shares of the firm at average share price of $27.57. The total amount for the sale was set at $137.85 thousand. On completing this exchange, the EVP & General Counsel account balance was 108.79 thousand shares. The stock lost -2.14 percent from that insider sale. On 09/03/2019, Tyle Craig Steven, EVP & General Counsel, did a sale of 5 thousand shares at a price of $26.01 per share. This got rid of 130.05 thousand shares from the insider’s fortune and the stock experienced a 3.73 percent rally in price since the news became public. This exchange saw 95.01 thousand shares get out from the EVP & General Counsel account.

On 06/03/2019, EVP, Gen. Counsel & Secretary Tyle Craig Steven recorded a sale transaction valued at $350 thousand. The sale at $32.04 a share has eliminated 10.92 thousand shares from the insider’s portfolio position. Meanwhile, shares price witnessed -15.79 percent decrease since the transaction reporting date. The company insider is left with 104.24 thousand shares remaining in the account. Tyle Craig Steven, who works as EVP and General Counsel at the company, performed a sale of 10.66 thousand shares in a transaction worth $349.96 thousand. The disposal recorded on 03/01/2019 was priced at $32.82 per share. The stock price plunged -17.79 percent since the transaction. Tyle Craig Steven currently holds a stake of 115.17 thousand in BEN stock which is worth $3.04 million after the insider selling.

The stock is lingering around the initial support level of $26.09. After this, the following support is at the zone of $25.8. Up until the time the BEN stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 36.29 on the daily chart, and this may be a cause for comfort. In case the price goes below $25.8 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $26.64 level may cause a pull-back move approaching $26.89 mark.

Franklin Resources, Inc. (BEN) shares are trading at a P/E ratio of 11.2 times earnings posted in the trailing 12 months. The industry BEN deals with has an average P/E of 17.3. Its P/B ratio is standing at 1.3X compared to the 1.6 industry average. It is additionally sporting a 2.3 on the Price-to-Sales ratio, compared to the industry’s P/S average of 2.8.