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Valued at a market cap of $12.4 billion, Franklin Resources, Inc. (BEN) is an investment management organization based in San Mateo, California. It provides a broad range of financial services to individuals and institutions.
Companies worth $10 billion or more are typically classified as “large-cap stocks,” and BEN fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the asset management industry. The company specializes in managing diverse asset classes, including equity, fixed income, alternatives, and multi-asset solutions, through a network of distinct specialist investment managers.
This asset management company is currently trading 17.2% below its 52-week high of $28.32, reached on Feb. 11. Shares of BEN have declined 2.3% over the past three months, outperforming the Nasdaq Composite’s ($NASX) 7.1% drop during the same time frame.
Moreover, on a YTD basis, shares of BEN are down 1.8%, compared to NASX’s 6.9% fall. However, over the past 52 weeks, BEN has gained 17.2%, underperforming NASX’s 22.4% gain.
To confirm its bearish trend, BEN has started trading below its 200-day moving average since mid-March, with slight fluctuations and has remained below its 50-day moving average since early March.
On Jan. 30, shares of BEN surged 2.9% after its better-than-expected Q1 earnings release. The company’s long-term net inflows were $28 billion, with record AUM and positive net flows across equity, multi-asset and alternatives strategies, as well as ETFs, retail SMAs and Canvas. Its operating revenue increased 3.4% year-over-year to $2.3 billion, topping consensus estimates by 8.4%. Moreover, its adjusted EPS of $0.70 advanced 18.6% from the year-ago quarter, handily exceeding analyst expectations of $0.55.
BEN has outpaced its rival, T. Rowe Price Group, Inc. (TROW), which declined 7.4% over the past 52 weeks and 15.8% on a YTD basis.
Despite BEN’s recent outperformance, analysts remain cautious about its prospects. The stock has a consensus rating of "Hold” from the 12 analysts covering it, and the mean price target of $27.27 suggests a 16.2% premium to its current price levels.
