Franklin Resources, Inc. (BEN) underperformed in recent months due to outflows in a subsidiary

From Yahoo Finance: 2025-06-24 07:41:00

Franklin Resources, Inc. (BEN), based in California, is a global investment firm with a market cap of $12 billion, managing over $1.6 trillion in assets for clients in 150+ countries. BEN is a large-cap stock known for its diverse asset management portfolio, international presence, and strong client relationships.

Despite hitting a 52-week high in July 2024, BEN stock slipped 6.1% recently. Over three months, it gained 15.2%, outperforming the Financial Select Sector SPDR Fund. Long-term, BEN shares rose 12.8% YTD, but marginally over the past year, trading above its moving averages since May.

The weak performance of BEN can be attributed to outflows from Western Asset Management, a subsidiary facing SEC scrutiny. After reporting Q2 results on May 2, BEN shares surged 7%, meeting EPS expectations and beating revenue forecasts. State Street Corporation shares lag behind BEN on a YTD basis but outperformed over the past 52 weeks.

Wall Street analysts are cautious about BEN’s future, giving it a consensus “Hold” rating. Trading above its mean price target of $20.31, BEN has a Street-high target of $28, suggesting a 22.3% upside potential for investors.

Read more: Is BEN Underperforming the Financial Sector?