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's MACD Histogram just turned positive
The Moving Average Convergence Divergence (MACD) for BEN turned positive on June 20, 2025. Looking at past instances where BEN's MACD turned positive, the stock continued to rise in of 49 cases over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on June 11, 2025. You may want to consider a long position or call options on BEN as a result. In of 97 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The 50-day moving average for BEN moved above the 200-day moving average on June 10, 2025. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where BEN advanced for three days, in of 314 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 176 cases where BEN Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The RSI Indicator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 11 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
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 .
BEN broke above its upper Bollinger Band on June 27, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
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 Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. BEN’s price grows at a higher rate over the last 12 months as compared to 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 (2.741). P/E Ratio (14.537) is within average values for comparable stocks, (26.261). Projected Growth (PEG Ratio) (3.111) is also within normal values, averaging (3.172). Dividend Yield (0.044) settles around the average of (0.071) among similar stocks. P/S Ratio (1.720) is also within normal values, averaging (11.907).
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 69, placing this stock slightly better than average.
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.
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a provider of investment management, marketing and administration services to investment companies
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