10% Owner Of Franklin Resources Makes $2.23M Buy

It was revealed in a recent SEC filing that Charles B Johnson, 10% Owner at Franklin Resources BEN made a noteworthy insider purchase on June 20,.

What Happened: In a significant move reported in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday, Johnson purchased 100,000 shares of Franklin Resources, demonstrating confidence in the company's growth potential. The total value of the transaction stands at $2,229,000.

The latest update on Thursday morning shows Franklin Resources shares up by 1.83%, trading at $22.81.

Unveiling the Story Behind Franklin Resources

Franklin Resources provides investment services for individual and institutional investors. At the end of April 2024, Franklin had $1.602 trillion in managed assets, composed primarily of equity (35%), fixed-income (35%), multi-asset/balanced (10%) funds, alternatives (16%) and money market funds (4%). Distribution tends to be weighted equally between retail investors (52% of AUM) and institutional accounts (46%), with high-net-worth clients accounting for the remainder. Franklin is one of the more global of the US-based asset managers we cover, with more than a third of its assets under management invested in global/international strategies and 30% of managed assets sourced from clients domiciled outside the United States.

Franklin Resources: Delving into Financials

Revenue Growth: Franklin Resources's revenue growth over a period of 3 months has been noteworthy. As of 31 March, 2024, the company achieved a revenue growth rate of approximately 11.71%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Financials sector.

Interpreting Earnings Metrics:

• Gross Margin: Achieving a high gross margin of 78.92%, the company performs well in terms of cost management and profitability within its sector.

• Earnings per Share (EPS): With an EPS below industry norms, Franklin Resources exhibits below-average bottom-line performance with a current EPS of 0.23.

Debt Management: With a below-average debt-to-equity ratio of 1.02, Franklin Resources adopts a prudent financial strategy, indicating a balanced approach to debt management.

Financial Valuation Breakdown:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 12.95, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 1.37, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Boasting an EV/EBITDA ratio of 10.69, Franklin Resources demonstrates a robust market valuation, outperforming industry benchmarks.

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

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Navigating the Impact of Insider Transactions on Investments

Insightful as they may be, insider transactions should be considered alongside a thorough examination of other investment criteria.

Exploring the legal landscape, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated by Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and major hedge funds. These insiders are required to report their transactions through a Form 4 filing, which must be submitted within two business days of the transaction.

Highlighted by a company insider's new purchase, there's a positive anticipation for the stock to rise.

But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Breaking Down the Significance of Transaction Codes

Delving into transactions, investors typically prioritize those unfolding in the open market, as precisely outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Franklin Resources's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.