Franklin Resources (NYSE:BEN) Hits New 1-Year High Following Strong Earnings

Franklin Resources, Inc. (NYSE:BEN) reached a new 52-week high on Friday after the company announced better than expected quarterly earnings. The stock 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, beating the consensus estimate of $0.55 by $0.15. The firm had revenue of $1.75 billion during the quarter, compared to the consensus estimate of $2.23 billion. Franklin Resources had a return on equity of 9.12% and a net margin of 5.98%.The business’s revenue for the quarter was up 3.4% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.59 EPS.

Franklin Resources Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, January 9th. Shareholders of record on Tuesday, December 30th were issued a dividend of $0.33 per share. The ex-dividend date of this dividend was Tuesday, December 30th. This represents a $1.32 dividend on an annualized basis and a yield of 5.0%. This is an increase from Franklin Resources’s previous quarterly dividend of $0.32. Franklin Resources’s payout ratio is currently 145.05%.

Key Headlines Impacting Franklin Resources

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

Analysts Set New Price Targets

Several research firms have recently commented on BEN. Barclays increased their price target on shares of Franklin Resources from $22.00 to $25.00 and gave the company an “underweight” rating in a research note on Thursday, January 15th. Weiss Ratings reissued a “hold (c+)” rating on shares of Franklin Resources in a research note on Monday, December 29th. Evercore ISI cut their price target on Franklin Resources from $25.00 to $23.00 and set an “underperform” rating on the stock in a research note on Thursday, October 9th. BMO Capital Markets assumed coverage on Franklin Resources in a research report on Friday, October 3rd. They issued an “outperform” rating and a $26.00 price objective for the company. Finally, JPMorgan Chase & Co. cut their target price on shares of Franklin Resources from $26.00 to $25.00 and set a “neutral” rating on the stock in a research report on Monday, November 10th. Three analysts have rated the stock with a Buy rating, five have issued a Hold rating and five have assigned a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Reduce” and a consensus price target of $24.64.

Institutional Investors Weigh In On Franklin Resources

Several large investors have recently bought and sold shares of BEN. Dimensional Fund Advisors LP grew its holdings in shares of Franklin Resources by 5.8% in the 3rd quarter. Dimensional Fund Advisors LP now owns 10,065,908 shares of the closed-end fund’s stock valued at $232,833,000 after buying an additional 553,184 shares during the period. ProShare Advisors LLC grew its stake in Franklin Resources by 1.1% in the second quarter. ProShare Advisors LLC now owns 8,677,417 shares of the closed-end fund’s stock valued at $206,956,000 after acquiring an additional 97,708 shares during the period. Northern Trust Corp increased its holdings in shares of Franklin Resources by 49.8% in the third quarter. Northern Trust Corp now owns 4,118,686 shares of the closed-end fund’s stock worth $95,265,000 after acquiring an additional 1,370,132 shares in the last quarter. Azora Capital LP raised its position in shares of Franklin Resources by 1.7% during the third quarter. Azora Capital LP now owns 3,242,470 shares of the closed-end fund’s stock worth $74,998,000 after purchasing an additional 53,741 shares during the period. Finally, Charles Schwab Investment Management Inc. grew its position in shares of Franklin Resources by 2.5% in the 2nd quarter. Charles Schwab Investment Management Inc. now owns 3,236,553 shares of the closed-end fund’s stock valued at $77,192,000 after purchasing an additional 80,146 shares during the period. Institutional investors own 47.56% of the company’s stock.

Franklin Resources Stock Up 2.6%

The company has a debt-to-equity ratio of 0.95, a quick ratio of 1.40 and a current ratio of 1.40. The firm’s fifty day simple moving average is $24.28 and its 200 day simple moving average is $24.03. 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.

About Franklin Resources

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.