Stock Price & Analysis

Based on the analysis of Franklin Resources (BEN) stock, considering mixed analyst ratings, recent insider buying activity, and the stock's current performance, it is recommended to sell BEN stock at current levels. The stock has underperformed the broader market, and while insider sentiment is positive, the overall outlook remains cautious due to analyst downgrades and challenging market conditions.

Price Prediction for BEN Stock in 2025

Based on analyst consensus and recent performance, Franklin Resources (BEN) is expected to reach a price target of $21.12 in 2025.

• Reasoning:
  • The stock has shown resilience with strong Q1 earnings, beating revenue and EPS estimates, and positive insider sentiment.
  • Analysts have raised their price targets, with a mean target of $21.12, reflecting confidence in the company's recovery and growth prospects.
  • However, risks include client outflows and regulatory challenges, which could impact long-term performance.

The S1 support level for BEN Stock is $19.11 ,The R1 resistant level for BEN Stock is $20.26.

As of the end of day on 2025-03-18, the price of BEN Stock was $19.88.

The target price for BEN Stock according to analyst rating is 21.07, with the highest price target at 24.00 and the lowest at 18.00. Analysts have a Moderate Sell rating on BEN Stock overall.

The market cap of BEN is $10.4B.

Analysis and Insights

Valuation Metrics

Franklin Resources Inc (BEN) currently has a P/E ratio of 16.19, which is higher than the industry average, suggesting potential overvaluation. The EV/EBITDA ratio of 12.06 and P/S ratio of 1.70 further indicate a premium valuation compared to peers.

Financial Performance

The company's total revenue has remained stable, with Q1 2025 revenue at $2.315 billion. However, net income has been inconsistent, with a notable decline in Q4 2024. The gross margin of 33.54% reflects stable profitability but not significant growth.

Dividend Yield and Insider Sentiment

BEN offers a dividend yield of 4.34%, attractive for income investors. Despite mixed analyst ratings, insider sentiment is positive, with 41 insiders increasing their positions, including a significant purchase by a major shareholder.

Technical Analysis

The stock is trading near its lower Bollinger Band, suggesting potential undervaluation. The RSI of 52.37 indicates a neutral position, with no clear overbought or oversold signal.

Conclusion

While BEN's valuation metrics suggest it may be overvalued, its dividend yield and insider confidence provide support. Investors should monitor earnings consistency and industry trends before making a decision.

Franklin Resources, Inc. is a global investment management company with subsidiaries operating as Franklin Templeton and serving clients in over 150 countries. It offers specialization on a global scale, bringing capabilities in fixed income, equity, alternatives and multi-asset solutions. The Company provides its investment management and related services to retail, institutional and high-net-worth investors in jurisdictions worldwide. Its investment products include sponsored funds, as well as institutional and high-net-worth separate accounts, retail separately managed account programs, sub-advised products, and other investment vehicles. Its funds include registered funds (including exchange-traded funds or ETFs) and unregistered funds. The Company offers its services and products under its various brand names, including Alcentra, K2, Benefit Street Partners, ClearBridge Investments, Martin Currie, O’Shaughnessy, and Lexington Partners. It also focuses on the retirement sector.

Based on analyst projections and current trends, Franklin Resources (BEN) stock could reach $28 by 2030, driven by expense reduction initiatives and improving profitability. Analysts have set an average price target of $21.12, indicating moderate growth potential. Positive insider sentiment and strategic investments further support this outlook.

BEN has a total of 9200 employees.