Franklin Resources (BEN, $35.74) cutting jobs to reduce costs
California-based Franklin Resources Inc. recently confirmed in a staff memo that the company is looking at reducing as much as 5% of its workforce in an effort to save at least $75 million in employee cost as the fund manager faces continued outflows and economic uncertainty.
However, the company will not be firing its employees directly, but will give them buyout offers eligible for employees who are older than 50 years and with an industry experience of more than 10 years. Those employees have until March 25 to respond to the offer. The firm had a headcount of 9,691 as of September 30, 2018 the end of its fiscal year.
The move came as the company is facing persistent pressure from the changing market scenario and so urgently needs to focus on value.
Other big asset management companies like BlackRock (BLK) and State Street Corp. (STT) have indicated towards job reductions in 2019 as cost-cutting is being driven by the 2018 market decline as well as industry automation and growing pressure to lower fees.
According to the company’s CEO Greg Johnson and President Jenny Johnson, the industry remains in the midst of rapid change and it has put pressure on our business in recent years. Therefore, these difficult decisions are but necessary ones for the long-term health and strength of the organization.
Franklin reported a preliminary assets under management of $712.3 billion as of March 31 2019, while it experienced net outflows in each fiscal year since 2014.
BEN in upward trend: price may ascend as a result of having broken its lower Bollinger Band on December 17, 2024
BEN may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In of 41 cases where BEN's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where BEN's RSI Indicator exited the oversold zone, of 32 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator is in the oversold zone. Keep an eye out for a move up in the foreseeable future.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where BEN advanced for three days, in of 309 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on January 07, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on BEN as a result. In of 101 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
BEN moved below its 50-day moving average on December 18, 2024 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for BEN crossed bearishly below the 50-day moving average on December 23, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 14 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where BEN declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.212) is normal, around the industry mean (2.761). P/E Ratio (14.537) is within average values for comparable stocks, (27.004). Projected Growth (PEG Ratio) (3.111) is also within normal values, averaging (3.172). Dividend Yield (0.044) settles around the average of (0.073) among similar stocks. P/S Ratio (1.720) is also within normal values, averaging (11.618).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. BEN’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. BEN’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 75, placing this stock worse than average.
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General Information
a provider of investment management, marketing and administration services to investment companies
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