Time to Sell Franklin Resources, Inc. After Today’s Option Traders Bearish Bets?

 Time to Sell Franklin Resources, Inc. After Today's Option Traders Bearish Bets?

In today’s session Franklin Resources, Inc. (BEN) recorded an unusually high (1,540) contracts volume of put trades. Someone, most probably a professional was a very active buyer of the October, 2016 put, expecting serious BEN decrease. With 1,540 contracts traded and 19714 open interest for the Oct, 16 contract, it seems this is a quite bearish bet. The option with symbol: BEN161021P00035000 closed last at: $1.3 or 13% up. About 514,309 shares traded hands. Franklin Resources, Inc. (NYSE:BEN) has declined 8.89% since March 16, 2016 and is downtrending. It has underperformed by 14.43% the S&P500.

Analysts await Franklin Resources, Inc. (NYSE:BEN) to report earnings on October, 27. They expect $0.67 earnings per share, up 13.56% or $0.08 from last year’s $0.59 per share. BEN’s profit will be $390.74M for 12.92 P/E if the $0.67 EPS becomes a reality. After $0.77 actual earnings per share reported by Franklin Resources, Inc. for the previous quarter, Wall Street now forecasts -12.99% negative EPS growth.

Franklin Resources, Inc. (NYSE:BEN) Ratings Coverage

Out of 14 analysts covering Franklin Resources Inc. (NYSE:BEN), 0 rate it a “Buy”, 5 “Sell”, while 9 “Hold”. This means 0 are positive. Franklin Resources Inc. has been the topic of 64 analyst reports since July 31, 2015 according to StockzIntelligence Inc. As per Monday, October 5, the company rating was maintained by JP Morgan. Jefferies maintained Franklin Resources, Inc. (NYSE:BEN) on Wednesday, October 7 with “Hold” rating. The stock has “Hold” rating given by Deutsche Bank on Thursday, March 17. The company was downgraded on Tuesday, March 15 by Bank of America. The company was maintained on Friday, July 29 by Keefe Bruyette & Woods. Barclays Capital maintained Franklin Resources, Inc. (NYSE:BEN) on Thursday, June 9 with “Underweight” rating. Deutsche Bank downgraded Franklin Resources, Inc. (NYSE:BEN) on Friday, October 9 to “Hold” rating. Jefferies maintained the stock with “Hold” rating in Friday, August 7 report. Barclays Capital downgraded Franklin Resources, Inc. (NYSE:BEN) on Tuesday, December 8 to “Underweight” rating. The stock of Franklin Resources, Inc. (NYSE:BEN) has “Neutral” rating given on Thursday, April 7 by JP Morgan.

According to Zacks Investment Research, “Franklin Resources provides investment advisory and related services to retail mutual funds, institutional and private accounts, and other investment products globally. Related services include transfer agency, fund administration, custodial, trustee and fiduciary services. The mutual funds and other products that it advise are sold to the public under three brand names: Franklin, Templeton, and Mutual Series.”

Insitutional Activity: The institutional sentiment decreased to 0.8 in 2016 Q2. Its down 0.02, from 0.82 in 2016Q1. The ratio dropped, as 64 funds sold all Franklin Resources, Inc. shares owned while 180 reduced positions. 42 funds bought stakes while 154 increased positions. They now own 275.30 million shares or 7.66% less from 298.13 million shares in 2016Q1.
Fayez Sarofim & owns 469,854 shares or 0.09% of their US portfolio. Victory Management Inc has invested 0% of its portfolio in Franklin Resources, Inc. (NYSE:BEN). Moreover, Price Michael F has 0.52% invested in Franklin Resources, Inc. (NYSE:BEN) for 117,500 shares. Vanguard has 25.37M shares for 0.05% of their US portfolio. Timber Hill Ltd Liability Co accumulated 0.01% or 47,884 shares. Teacher Retirement Systems Of Texas accumulated 48,185 shares or 0.01% of the stock. Citigroup Inc holds 159,571 shares or 0.01% of its portfolio. First Republic Invest Mngmt holds 0.02% or 53,717 shares in its portfolio. Retail Bank Of Nova Scotia holds 0.01% of its portfolio in Franklin Resources, Inc. (NYSE:BEN) for 73,441 shares. Moreover, Osborne Partners Capital Ltd Com has 0.16% invested in Franklin Resources, Inc. (NYSE:BEN) for 33,000 shares. Credit Agricole S A owns 197,442 shares or 0.03% of their US portfolio. Sumitomo Mitsui Asset Management Communications owns 29,005 shares or 0.03% of their US portfolio. Airain Ltd, a Guernsey-based fund reported 12,622 shares. Umb Savings Bank N A Mo holds 0.01% or 6,896 shares in its portfolio. Boston Family Office Ltd Llc has invested 0.03% of its portfolio in Franklin Resources, Inc. (NYSE:BEN).

Insider Transactions: Since August 24, 2016, the stock had 0 insider purchases, and 2 sales for $752,868 net activity. Tyle Craig Steven sold 5,000 shares worth $180,901. JOHNSON JENNIFER M sold 15,892 shares worth $571,967.

Franklin Resources, Inc. , is a holding company. The company has a market cap of $20.18 billion. Franklin together with its various subsidiaries (collectively, the Company), is referred to as Franklin Templeton Investments, is a global investment management organization offering investment management and related services under the Franklin, Templeton, Mutual Series, Bissett, Fiduciary and Darby brand names. It has a 12.79 P/E ratio. It provides services to investment funds in jurisdictions globally, which include the United States- and non- United States-registered open-end and closed-end funds, unregistered funds, and institutional, high net-worth and separately-managed accounts.

BEN Company Profile

Franklin Resources, Inc. (Franklin), incorporated on November 28, 1969, is a holding company. Franklin together with its various subsidiaries (collectively, the Company) is referred to as Franklin Templeton Investments, is a global investment management organization offering investment management and related services under the Franklin, Templeton, Mutual Series, Bissett, Fiduciary and Darby brand names. The Company’s investment management and related services provides services to investment funds in jurisdictions globally, which include the United States- and non- United States-registered open-end and closed-end funds, unregistered funds, and institutional, high net-worth and separately-managed accounts (collectively, its sponsored investment products). The Company’s investment management and related services include fund administration, shareholder services, transfer agency, underwriting, distribution, custodial, trustee and other fiduciary services. The Company’s sponsored investment products include a range of equity, hybrid, fixed-income and cash management funds and accounts, including alternative investment products. It also manages certain sub-advised investment products, which may be sold to the public under one of its brand names or that of other companies. Most of the investment funds it manages are open-end mutual funds that offer their shares to investors. It also offers closed-end funds that issue a set number of shares to investors in a public offering and the shares are then traded on a public stock exchange.

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