President and CEO At Franklin Resources Buys $249K of Stock

On August 30, a substantial insider purchase was made by JENNIFER JOHNSON, President and CEO at Franklin Resources BEN, as per the latest SEC filing.

What Happened: JOHNSON made a significant move by purchasing 12,700 shares of Franklin Resources as reported in a Form 4 filing with the U.S. Securities and Exchange Commission. The transaction's total worth stands at $249,737.

In the Friday's morning session, Franklin Resources's shares are currently trading at $20.13, experiencing a up of 0.8%.

Delving into Franklin Resources's Background

Franklin Resources provides investment services for individual and institutional investors. At the end of July 2024, Franklin had $1.663 trillion in managed assets, composed primarily of equity (36%), fixed-income (34%), 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 30% of its assets under management invested in global/international strategies and just as much 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 30 June, 2024, the company achieved a revenue growth rate of approximately 7.82%. This indicates a substantial increase in the company's top-line earnings. When compared to others in the Financials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Profitability Metrics: Unlocking Value

• Gross Margin: The company maintains a high gross margin of 79.98%, indicating strong cost management and profitability compared to its peers.

• Earnings per Share (EPS): With an EPS below industry norms, Franklin Resources exhibits below-average bottom-line performance with a current EPS of 0.32.

Debt Management: Franklin Resources's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 1.06.

Financial Valuation:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 12.4 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 1.22, 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): The company's EV/EBITDA ratio of 10.46 trails industry averages, indicating a potential disparity in market valuation that could be advantageous for investors.

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

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Delving Into the Significance of Insider Transactions

Insider transactions serve as a piece of the puzzle in investment decisions, rather than the entire picture.

When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Exploring Key Transaction Codes

Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies 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.