Franklin Resources (NYSE:BEN) Hits New 1-Year High After Earnings Beat

Franklin Resources, Inc. (NYSE:BEN)’s share price reached a new 52-week high during mid-day trading on Friday after the company announced better than expected quarterly earnings. The company traded as high as $26.82 and last traded at $26.0920, with a volume of 609820 shares. The stock had previously closed at $25.88.

The closed-end fund reported $0.70 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.55 by $0.15. Franklin Resources had a return on equity of 9.12% and a net margin of 5.98%.The firm had revenue of $1.75 billion for the quarter, compared to the consensus estimate of $2.23 billion. During the same quarter in the previous year, the company earned $0.59 EPS. The business’s revenue for the quarter was up 3.4% compared to the same quarter last year.

Franklin Resources Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, January 9th. Investors of record on Tuesday, December 30th were given a $0.33 dividend. This is a boost from Franklin Resources’s previous quarterly dividend of $0.32. The ex-dividend date was Tuesday, December 30th. This represents a $1.32 annualized dividend and a dividend yield of 5.0%. Franklin Resources’s payout ratio is currently 145.05%.

Franklin Resources News Summary

Here are the key news stories impacting Franklin Resources this week:

• Positive Sentiment: Q1 EPS beat and stronger profitability: BEN reported $0.70 EPS vs. a $0.55 consensus and higher net income and operating income versus prior periods — a core driver of the rally because earnings power beat expectations. Investing.com: Earnings beat
• Positive Sentiment: Assets under management and net inflows improved: Several reports note sequential AUM growth and net inflows, which lift fee revenue prospects and support recurring revenue. This helped sentiment alongside the earnings beat. Zacks: AUM rises
• Positive Sentiment: Operational detail and management commentary available: The company released a formal press release, slide deck and an earnings-call transcript with details on margins, flows and strategy — useful for confirming sustainability of the beat. BusinessWire: Q1 results Seeking Alpha: Call transcript
• Neutral Sentiment: Market-driven fee tailwind but revenue mix matters: Coverage notes that market rallies boosted fee income (helpful), but revenue comparisons and sustainability depend on future flows and market levels — worth watching in coming quarters. MSN: Profit rises
• Negative Sentiment: Analyst downgrades and caution: Morgan Stanley issued a “sell” and broker consensus on some screens is “reduce” — these downgrades can cap upside despite the quarter, as analysts point to cautious outlook or valuation concerns. Globe and Mail: Morgan Stanley sell AmericanBankingNews: Consensus Reduce
• Negative Sentiment: Revenue reporting discrepancies and mixed headlines: Some headlines say revenue topped estimates while others highlight misses versus certain analyst models — this mixed signal can create short-term volatility until the market parses the underlying drivers. Yahoo Finance: Q4/CY2025 recap

Analyst Ratings Changes

A number of analysts have recently issued reports on the company. Wall Street Zen upgraded Franklin Resources from a “hold” rating to a “buy” rating in a report on Saturday. Evercore ISI dropped their price target on Franklin Resources from $25.00 to $23.00 and set an “underperform” rating on the stock in a research report on Thursday, October 9th. JPMorgan Chase & Co. decreased their price objective on Franklin Resources from $26.00 to $25.00 and set a “neutral” rating for the company in a research report on Monday, November 10th. Weiss Ratings reiterated a “hold (c+)” rating on shares of Franklin Resources in a report on Monday, December 29th. Finally, TD Cowen reduced their price target on shares of Franklin Resources from $31.00 to $30.00 and set a “buy” rating for the company in a research report on Wednesday, January 14th. Three research analysts have rated the stock with a Buy rating, five have given a Hold rating and five have issued a Sell rating to the company. According to data from MarketBeat, Franklin Resources has a consensus rating of “Reduce” and an average target price of $24.64.

Hedge Funds Weigh In On Franklin Resources

A number of hedge funds have recently added to or reduced their stakes in the company. Capital A Wealth Management LLC lifted its stake in Franklin Resources by 3,869.2% in the second quarter. Capital A Wealth Management LLC now owns 1,032 shares of the closed-end fund’s stock valued at $25,000 after acquiring an additional 1,006 shares during the last quarter. Root Financial Partners LLC bought a new position in shares of Franklin Resources during the 3rd quarter valued at $25,000. Total Investment Management Inc. acquired a new stake in shares of Franklin Resources in the 2nd quarter valued at $27,000. Rakuten Securities Inc. boosted its holdings in Franklin Resources by 277.0% in the fourth quarter. Rakuten Securities Inc. now owns 1,150 shares of the closed-end fund’s stock worth $27,000 after purchasing an additional 845 shares in the last quarter. Finally, Consultiva Wealth Management CORP. boosted its holdings in Franklin Resources by 177.1% in the second quarter. Consultiva Wealth Management CORP. now owns 1,283 shares of the closed-end fund’s stock worth $31,000 after purchasing an additional 820 shares in the last quarter. Institutional investors and hedge funds own 47.56% of the company’s stock.

Franklin Resources Price Performance

The company’s 50-day simple moving average is $24.28 and its 200 day simple moving average is $24.02. The company has a quick ratio of 1.40, a current ratio of 1.40 and a debt-to-equity ratio of 0.95. The stock has a market capitalization of $13.85 billion, a price-to-earnings ratio of 29.19, a P/E/G ratio of 1.25 and a beta of 1.44.

Franklin Resources Company Profile

Franklin Resources, Inc, doing business as Franklin Templeton, is a global investment management organization that offers a wide range of asset management solutions to institutional and individual investors. The firm’s core focus is on delivering active portfolio management across equities, fixed income, multi-asset strategies and alternative investments. Franklin Templeton’s product lineup includes mutual funds, exchange-traded funds (ETFs), closed-end funds, separately managed accounts and sub-advisory services designed to meet varying risk-return objectives and income needs.

Founded in 1947 by Rupert H.