/Franklin%20Resources%2C%20Inc_%20logo%20and%20site-by%20Wirestock%20Creators%20via%20Shutterstock.jpg)
With a market cap of $10.1 billion, Franklin Resources, Inc. (BEN) is a global investment management company that provides asset management services through its subsidiaries under brands like Franklin, Templeton, and Legg Mason. Based in San Mateo, California, the firm offers a diverse range of investment products, including mutual funds, institutional accounts, and alternative investments.
Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and Franklin Resources fits this criterion perfectly. With a worldwide presence, Franklin Resources serves individuals, institutions, and pension plans across multiple asset classes, including fixed-income, equity, and multi-asset solutions.
Shares of the investment manager are trading 32.3% below its 52-week high of $28.08. BEN has decreased 6.2% over the past three months, lagging behind the broader Dow Jones Industrials Average’s ($DOWI) 2.3% dip over the same time frame.
In the longer term, Franklin Resources stock is down 6.2% on a YTD basis, underperforming DOWI’s 1.3% decrease. Moreover, shares of BEN have declined 31.1% over the past 52 weeks, compared to DOWI’s 5.5% return over the same time frame.
Despite few fluctuations, BEN has been trading below its 50-day and 200-day moving averages since last year.
Shares of Franklin Resources jumped 10.4% on Jan. 31 due to a strong Q1 2025 earnings report that exceeded Wall Street expectations. The company reported an adjusted EPS of $0.59 and revenue of $2.3 billion, driven by a 9% increase in investment management fees to $1.8 billion. Additionally, assets under management (AUM) grew 8% year-over-year to $1.58 trillion, benefiting from a strong equities market rally. Despite total net outflows widening to $50 billion, investors reacted positively to the company's revenue growth and earnings beat, driving the stock higher.
Franklin Resources has lagged behind its rival, BlackRock, Inc. (BLK), which has gained 13.5% over the past 52 weeks. However, on a YTD basis, BlackRock experienced a 7.7% decline, a slightly larger drop than BEN.
Due to Franklin Resources’ underperformance over the past year, analysts have a slightly negative outlook on the stock. The 14 analysts covering BEN have a consensus rating of “Moderate Sell,” and as of writing, it is trading below the mean price target of $20.95.
