Benzinga - by Benzinga Insights, Benzinga Staff Writer.
It was revealed in a recent SEC filing that John Thiel, Board Member at Franklin Resources (NYSE:BEN) made a noteworthy insider purchase on February 7,.
What Happened: Thiel demonstrated confidence in Franklin Resources by purchasing 7,323 shares, as reported in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total value of the transaction is $195,011.
Tracking the Thursday's morning session, Franklin Resources shares are trading at $26.72, showing a down of 0.0%.
Get to Know Franklin Resources Better Franklin Resources provides investment services for individual and institutional investors. At the end of October 2023, Franklin had $1.335 trillion in managed assets, composed primarily of equity (31%), fixed-income (35%), multi-asset/balanced (11%) funds, alternatives (19%) and money market funds (4%). Distribution tends to be weighted equally between retail investors (50% of AUM) and institutional accounts (48%), with high-net-worth clients accounting for the remainder. Franklin is one of the more global of the U.S.-based asset managers we cover, with more than a third of its assets under management invested in global/international strategies and 29% of managed assets sourced from clients domiciled outside the United States.
Key Indicators: Franklin Resources's Financial Health Revenue Growth: Franklin Resources's remarkable performance in 3 months is evident. As of 31 December, 2023, the company achieved an impressive revenue growth rate of 1.22%. This signifies 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.
Profitability Metrics: Unlocking Value
- Gross Margin: The company maintains a high gross margin of 61.24%, indicating strong cost management and profitability compared to its peers.
- Earnings per Share (EPS): Franklin Resources's EPS reflects a decline, falling below the industry average with a current EPS of 0.5.
Understanding Financial Valuation:
- Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 14.06 is lower than the industry average, indicating potential undervaluation for the stock.
- Price to Sales (P/S) Ratio: The P/S ratio of 1.66 is lower than the industry average, implying a discounted valuation for Franklin Resources's stock in relation to sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Franklin Resources's EV/EBITDA ratio at 10.56 suggests potential undervaluation, falling below industry averages.
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Why Pay Attention to Insider Transactions Insider transactions contribute to decision-making but should be supplemented by a comprehensive investment analysis.
Considering the legal perspective, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, according to Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.
Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.
Important Transaction Codes Digging into the details of stock transactions, investors frequently turn their attention to those taking place in the open market, as 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.
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