Franklin Resources Outlook - Technical Neutrality and Mixed Analyst Signals

Market Snapshot

Headline takeaway: Franklin Resources (BEN) remains in technical neutrality with mixed analyst signals, as bearish and bullish indicators balance out.

News Highlights

No recent news was reported in the last 5 days for Franklin Resources. Investors should continue to monitor for any developments that might impact the stock's direction.

Analyst Views & Fundamentals

Analysts have been somewhat divided in their recent ratings, with the simple average rating of 2.25 and a performance-weighted rating of 1.42. These scores suggest a generally pessimistic outlook on the stock.

The rating consistency is low, with a mix of "Sell" and "Neutral" ratings. This dispersion contrasts somewhat with the current price trend, which has seen a decline of -2.89%.

• Revenue-MV ratio: 2.00% (model score: 2)
• Operating cycle: 60.83 days (model score: 1)
• Days sales outstanding: 60.83 days (model score: 1)
• Current liabilities / Total liabilities: 15.24% (model score: 2)
• Non-current assets / Total assets: 40.35% (model score: 1)
• Fixed assets turnover ratio: 4.49 (model score: 2)
• GPOA (Gross Profit over Assets): 5.04% (model score: 0)
• Interest coverage ratio (EBIT / Interest expense): 9.11 (model score: 3)
• Current assets / Total assets: 59.65% (model score: 2)
• Cash-MV (Cash over Market Value): 5.40% (model score: 3)

These fundamental metrics suggest a mixed outlook, with some positive liquidity indicators like the interest coverage ratio and cash-MV, but also some concerning ratios like GPOA and operating cycle length.

Money-Flow Trends

Money flow trends for Franklin Resources show a negative overall trend, with inflow ratios across all categories also trending negatively. The fund flow score is 7.68 (an internal diagnostic score of 0-10), indicating relatively good inflow activity despite the negative trend. This suggests that while large institutional investors are cautious, retail and small investor inflows remain reasonably strong.

Key Technical Signals

The technical score for Franklin Resources is 5.02 (an internal diagnostic score of 0-10), indicating technical neutrality and a wait-and-see stance.

• WR Overbought: 6.37 (an internal diagnostic score of 0-10), suggesting a neutral rise in price.
• WR Oversold: 6.93 (an internal diagnostic score of 0-10), indicating a neutral rise in price.
• Bearish Engulfing: 2.67 (an internal diagnostic score of 0-10), showing a neutral bias.
• MACD Death Cross: 1.00 (an internal diagnostic score of 0-10), a strong bearish signal.
• MACD Golden Cross: 8.11 (an internal diagnostic score of 0-10), a strong bullish signal.

Looking at recent indicator activity, the last 5 days have seen a mix of overbought, death cross, and golden cross signals, indicating a volatile environment. Investors should watch for a clear breakout from this range-bound pattern.

Key insights suggest that the market is in a volatile state, with long and short signals relatively balanced. Investors are advised to closely monitor market changes for a clearer direction.

Conclusion

Actionable takeaway: Franklin Resources is caught in a period of technical neutrality and analyst divergence. While the fundamental metrics show a mixed picture, the technical and fund-flow signals indicate a wait-and-see approach. Investors should consider waiting for a clearer breakout or major news catalyst before making a move.