Franklin Resources Inc. (NYSE:BEN) has reported a significant purchase of shares by executive Charles B. Johnson, according to a recent SEC filing. On June 18, 2024, Johnson acquired 100,000 shares of the company's common stock at a weighted average price between $22.105 and $22.425, with the total transaction amounting to approximately $2.23 million.
The transaction was part of Johnson's investment in the company, where he holds a substantial number of shares. Following this latest purchase, Johnson now owns 88,503,192 shares directly. Additionally, the executive has indirect holdings through a 401(k) retirement plan and an Individual Retirement Account (IRA), with 23,689.7474 and 4,059,651 shares respectively.
Investors often monitor the buying and selling activities of company executives as they can provide insights into the company's financial health and future prospects. The purchase by Johnson represents a strong vote of confidence in the future of Franklin Resources, a global investment management organization known for its Franklin, Templeton, and Mutual Series funds, among others.
Franklin Resources has not provided any comments on the transaction. However, the details of the purchase, including the number of shares bought at each separate price within the specified range, will be made available upon request to the issuer, any security holder of the issuer, or the staff of the Securities Exchange Commission.
In other recent news, Franklin Resources, also known as Franklin Templeton, has been the subject of several significant developments. The investment management firm has maintained its quarterly cash dividend at $0.31 per share, marking a 3.3% increase from the dividend paid in the same quarter of the previous year. However, the firm's second-quarter profit has dipped due to rising costs, particularly higher employee compensation, despite an increase in investment management fees.
In the realm of analyst evaluations, TD Cowen has reduced Franklin Resources' stock price target to $25.50, while maintaining a Hold rating. BofA Securities, on the other hand, has cut the price target to $23.00 but also retains an Underperform rating. BMO Capital Markets has also adjusted its outlook, reducing the price target to $27 while keeping a Market Perform rating.
These recent developments highlight the dynamic financial landscape that Franklin Resources is navigating. The firm's future expectations are being closely watched by investors, with analysts from firms like TD Cowen, BofA Securities, and BMO Capital Markets providing their assessments based on the company's financial results and guidance.
InvestingPro Insights
In the wake of Charles B. Johnson's significant share purchase in Franklin Resources Inc. (NYSE:BEN), current and prospective investors may find additional context through key metrics and insights from InvestingPro. The company, as of the last twelve months ending Q2 2024, holds a market capitalization of $11.78 billion and has demonstrated a commitment to shareholder returns, maintaining dividend payments for an impressive 44 consecutive years. This dedication is reflected in a current dividend yield of 5.54%, showcasing a 3.33% growth in dividends over the last twelve months.
An analysis of Franklin Resources' financial health reveals that its liquid assets surpass short-term obligations, indicating a strong liquidity position. Moreover, the company's shares are trading near their 52-week low, with the price having declined by 17.15% over the last three months. Despite this recent performance, analysts remain optimistic about the company's profitability, predicting Franklin Resources will maintain profitability this year, a sentiment supported by a robust operating income margin of 18.33%.
For investors seeking a deeper dive into Franklin Resources' financials and future outlook, InvestingPro offers additional InvestingPro Tips that could be particularly valuable in informing investment decisions. Currently, there are 6 additional tips available for Franklin Resources on InvestingPro. New subscribers can take advantage of these insights with a special offer using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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