Is it Now Time For Investors to Consider Selling Franklin Resources Inc (NYSE:BEN) Stock? Barclays Capital Downgrades The Company


Franklin Resources Inc (NYSE:BEN) Receives a Downgrade

Barclays Capital cut shares of Franklin Resources Inc (NYSE:BEN) stock to a Underweight rating from their previous Equal-weight rating. The news of this change was announced in an analyst note today. The firm presently has $36.00 Estimated Target Price on the shares.

From a total of 17 analysts covering Franklin Resources Inc. (NYSE:BEN) stock, 1 rate it a ”Buy”, 1 a “Sell”, and 16 a ”Hold”. This means that 6% of the ratings are positive. The highest target price is $47 while the lowest target price is $36. The mean of all analyst targets is $41.97 with a 14.65% above today’s ($39.32) stock price. Franklin Resources Inc. was the topic of 28 analyst reports since July 31, 2015 according to the firm StockzIntelligence Inc. Barclays Capital downgraded shares on December 8 to “Underweight” rating. Wood maintained shares with “Market Perform” rating and $46 target share price in a report from a September 3. Jefferies maintained BEN stock in a recent report from October 7 with “Hold” rating. Deutsche Bank maintained the rating on August 17. Deutsche Bank has a “Hold” rating and a $48 price target on shares. Finally, Citigroup maintained the stock with “Neutral” rating in a report issued on a September 10.

The stock decreased 3.67% or $1.5 during the last trading session, striking $39.32. Approximately 4.31 million shares of stock traded hands or 46.60% up from the average. Franklin Resources, Inc. (NYSE:BEN) has declined 24.15% since May 6, 2015 and is downtrending. It has underperformed by 23.36% the S&P500.

The overall sentiment of institutions has increased to 1.06 in Q2 2015. Its up 0.20, from 0.86 in 2015Q2. The ratio improved, as 78 institutions have sold all the shares of Franklin Resources, Inc. that they owned while 188 funds have taken shares off the table. 60 funds have purchased shares for the first time while 223 added to their positions. These institutions now hold 308.56 million shares or 4.16% more than the 296.24 million shares they owned in 2015Q2.

The Fund Gallagher Fiduciary Advisors Llc currently is holding shares equating to 40.43% of its total portfolio in Franklin Resources, Inc. representing a total of 2.20 million shares. Another fund,Wintergreen Advisers Llc, is holding a total of 1.55 million shares equating to 11.93% of their holdings. Additionally, Kenmare Capital Partners L.L.C. has a 345,862 share stake in Franklin Resources, Inc. which represents 8.31% of their total portfolio. The Fund, Rk Asset Management Llc, based out of Michigan, has also built up a stake in the stock, which represents a total of 5.94% of their total portfolio. Finally Highfields Capital Management Lp, a fund which is based in the state of Massachusetts reported a total holdings of 17.27 million shares.

Insider activity is a very important aspect to track on any stock. Going back to May 20, 2015, shareholders of Franklin Resources, Inc. have witnessed 0 buys, and a total of 1 sale equating to a net activity of approximately $513,357 . Johnson Jennifer M sold 13,000 shares worth approximately $513,357. Lusk John M sold 15,000 shares worth approximately $774,507.

Franklin Resources, Inc. , is a holding company. The company has a market cap of $24.55 billion. Franklin together with its various subsidiaries (collectively, the Company), is referred to as Franklin Templeton Investments, is a global investment management organization offering investment management and related services under the Franklin, Templeton, Mutual Series, Bissett, Fiduciary and Darby brand names. It has 11.93 P/E ratio. It provides services to investment funds in jurisdictions globally, which include the United States- and non- United States-registered open-end and closed-end funds, unregistered funds, and institutional, high net-worth and separately-managed accounts.

According to Zacks Investment Research, “Franklin Resources provides investment advisory and related services to retail mutual funds, institutional and private accounts, and other investment products globally. Related services include transfer agency, fund administration, custodial, trustee and fiduciary services. The mutual funds and other products that it advise are sold to the public under three brand names: Franklin, Templeton, and Mutual Series.” Get a free copy of the Zacks research report on Franklin Resources, Inc. (BEN).