Franklin Resources Faces Challenges Amid Market Fluctuations

Franklin Resources, Inc. (BEN), based in San Mateo, California, operates as a global investment management firm serving clients in over 150 countries. With a market capitalization of $10.5 billion, the company manages more than $1.6 trillion in assets, providing a diverse range of services in equity, fixed income, alternative investments, and multi-asset strategies.

Recent Performance Compared to Market Trends

Over the past year, shares of BEN have lagged behind the broader market. During this period, BEN has declined 14.3%, while the S&P 500 Index ($SPX) has increased by nearly 8.2%. As of 2025, BEN has experienced a 1.1% year-to-date decline, outperforming the SPX’s 4.7% drop.

When compared to the Financial Select Sector SPDR Fund (XLF), BEN’s underperformance becomes even clearer. The ETF has gained approximately 19.7% in the last year. Year-to-date, XLF’s 1.7% returns also surpass BEN’s decline in the same timeframe.

Factors Influencing BEN’s Weak Performance

BEN’s recent struggles can be attributed to significant outflows from its subsidiary, Western Asset Management. This unit is currently under scrutiny from the SEC due to allegations of trading misconduct by former co-CIO Ken Leech.

Quarterly Results and Analyst Insights

On May 2, BEN saw a 7% increase in its share price following the release of its Q2 results. The adjusted earnings per share (EPS) of $0.47 met Wall Street expectations, and the company reported revenue of $2.1 billion, surpassing forecasts of $2 billion.

Looking ahead to the current fiscal year ending in September, analysts project a 16.3% decline in BEN’s EPS to $2 on a diluted basis. The company’s past earnings surprise history is varied, having met or exceeded consensus estimates in three of the last four quarters, while missing on another occasion.

Analyst Ratings and Future Outlook

Among the 14 analysts covering BEN, the consensus rating is a “Moderate Sell.” This is based on eight “Hold” ratings, two “Moderate Sells,” and four “Strong Sells.” This pattern has remained consistent over the past three months.

On May 4, Evercore ISI analyst Glenn Schorr reiterated a “Sell” rating for BEN, establishing a price target of $20. Presently, the stock trades above its average price target of $18.39, yet the highest target of $23 indicates a potential upside of 14.6%.

On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.