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Franklin Hits a New 52-Week High: Is There Further Upside Potential?
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Key Takeaways
BEN hit a 52-week high of $32.24 before closing at $32.04 amid strong momentum.
BEN expansion includes crypto acquisition, Binance deal and AI partnerships boosting digital push.
BEN AUM growth trend and improving revenue outlook are supported by distribution strength and inflows.
Franklin Resources, Inc. (BEN - Free Report) shares touched a new 52-week high of $32.24 during yesterday's trading session. However, the stock closed the session a little lower at $32.04.
Over the past six months, shares of BEN have rallied 44.5% against the industry’s decline of 4.1%. Additionally, its close peers, such as Federated Hermes, Inc. (FHI - Free Report) and T. Rowe Price Group, Inc. (TROW - Free Report) , gained 13.6% and 1.2%, respectively, over the same period.
Price Performance
Image Source: Zacks Investment Research
Does BEN stock have more upside left despite showing recent strength in share price? Let us find out.
Factors Aiding BEN Stock
Acquisitions and Strategic Partnerships to Drive Expansion: Franklin has been actively expanding its business through acquisitions and partnerships to strengthen its investment capabilities and diversify its offerings. In April 2026, the company agreed to acquire 250 Digital, a crypto investment firm spun out of CoinFund, and launched the Franklin Crypto unit to enhance its digital asset capabilities and institutional reach. Earlier, in February 2026, Franklin partnered with Binance to introduce an off-exchange institutional collateral program aimed at improving the safety and capital efficiency of digital asset trading.
The company has also been focusing on strengthening its alternatives and technology platforms. In November 2025, Franklin partnered with Wand AI to scale agentic AI across research and operations as part of its digital transformation initiatives. In October 2025, it acquired Apera Asset Management, which increased its global alternative credit AUM to more than $90 billion and expanded its overall alternatives platform to nearly $270 billion. These initiatives are expected to support long-term growth and strengthen its alternatives platform.
Consistent AUM Expansion: The company has witnessed solid growth in its assets under management (AUM) balance over the years, recording a CAGR of 3.1% over the last five fiscal years (ending fiscal 2025), despite declines in fiscal 2022 and 2025. The growth trend continued in the first six months of fiscal 2026.
AUM Growth Trend
Image Source: Franklin Resources, Inc.
Franklin’s efforts to diversify into asset classes witnessing rising client demand, particularly alternative investments, are expected to support AUM growth in the coming period. Further, its regionally focused distribution model has strengthened the non-U.S. business and supported favorable net flows.
Improving Revenue Base: Franklin has benefited from organic growth over the years. Though revenues declined in fiscal 2023, the company recorded a CAGR of 1.9% over the last three fiscal years ending fiscal 2025. The growth momentum continued in the first six months of fiscal 2026.
The company’s strong distribution platform has supported diversified inflows across funds, vehicles and asset classes, driving business growth. Further, its early presence in several international markets has provided a first-mover advantage. Its efforts to diversify revenue streams, supported by a solid fixed-income pipeline, are expected to aid revenue growth going forward. The Zacks Consensus Estimate for sales is pegged at 3.6% and 1% year-over-year growth for fiscal 2026 and 2027, respectively.
Sales Estimates
Image Source: Zacks Investment Research
Strong Liquidity Position Supports Capital Distribution Activities: The company enjoys a solid balance sheet position. As of March 31, 2026, the company had no short-term debt. Further, its liquidity position, comprising cash and cash equivalents, receivables and investments, was $6.6 billion. Thus, Franklin’s strong liquidity position provides ample financial flexibility to support capital distribution activities while meeting operational and growth needs. In December 2025, its board authorized the repurchase of an additional 20.8 million shares, taking the total authorization to 40 million shares. As of March 31, 2026, shares worth $35.9 million remained available under the authorization.
Apart from the share repurchase program, the company pays regular dividends. In December 2025, BEN raised its cash dividend by 3.1% to 33 cents per share. Over the past five years, the company has raised its dividend five times. Its current dividend yield stands at 4.12%, above the industry average of 2.49%. Meanwhile, Federated Hermes and T. Rowe Price offer dividend yields of 2.72% and 5.05%, respectively.
Dividend Yield
Image Source: Zacks Investment Research
These capital distribution activities, combined with a strong liquidity profile, will likely stoke investors’ confidence in the stock.
Concerns Prevailing for Franklin Resources
Volatile Investment Management Fees: Franklin’s investment management fees, which accounted for 79.3% of total revenues as of March 31, 2026, have witnessed a volatile trend over the years. The metric largely depends on the level and mix of AUM, making it vulnerable to market fluctuations, foreign exchange movements and regulatory changes.
While investment management fees declined in fiscal 2020 and fiscal 2023, the metric improved in fiscal 2021, fiscal 2022, fiscal 2024 and fiscal 2025. The uptrend continued in the first six months of fiscal 2026. Nevertheless, unfavorable changes in AUM and market conditions may hurt fee revenues going forward.
Rising Expense Base Remains a Concern: Franklin’s escalating expense base continues to be a headwind. Though expenses declined in 2022 due to lower sales and marketing costs and synergy benefits from the Legg Mason acquisition, the metric witnessed a CAGR of 7.9% over the last three years ended fiscal 2025. The uptrend continued in the first six months of fiscal 2026.
Further, the Apera acquisition is expected to add nearly $30 million in expenses in fiscal 2026. Ongoing technology investments, higher fundraising-related costs and integration expenses are likely to keep costs elevated and pressure bottom-line growth.
BEN's Earnings Estimates and Valuation Analysis
Analysts are optimistic regarding Franklin’s earnings growth potential. Over the past week, the Zacks Consensus Estimate for the company’s fiscal 2026 and 2027 earnings has been revised upward. The estimated figures reflect respective year-over-year growth rates of 22.1% and 8.5%.
Earnings Estimate
Image Source: Zacks Investment Research
In terms of valuation, BEN stock appears inexpensive relative to the industry. The company is currently trading at a forward 12-month price-to-earnings (P/E) multiple of 11.23X, which is below the industry’s P/E of 13.95X.
Price-to-Earnings F12M
Image Source: Zacks Investment Research
Meanwhile, Federated Hermes holds a P/E ratio of 10.56X, while T. Rowe Price’s P/E ratio stands at 10.74X.
Parting Thoughts on Franklin Resources
Franklin’s strategic acquisitions and partnerships, expanding alternatives platform, and growing focus on customized portfolio solutions are expected to support long-term AUM and revenue growth. Further, strong liquidity and consistent capital distribution activities underscore the company’s financial stability and shareholder-friendly approach.
The company’s improving earnings performance, diversified investment offerings and strengthening global distribution platform also position it well for long-term growth. Additionally, BEN stock appears attractively valued relative to the industry.
However, volatility in investment management fees due to market fluctuations and a rising expense base remains a concern. Higher technology investments, integration costs and fundraising-related expenses are likely to pressure margins in the near term.
Hence, it may not be the ideal time to buy the stock. However, long-term investors with existing holdings may find value in maintaining their stake, given its solid fundamentals.
View the Zacks #1 Rank List
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Franklin Hits a New 52-Week High: Is There Further Upside Potential?
Key Takeaways
Franklin Resources, Inc. (BEN - Free Report) shares touched a new 52-week high of $32.24 during yesterday's trading session. However, the stock closed the session a little lower at $32.04.
Over the past six months, shares of BEN have rallied 44.5% against the industry’s decline of 4.1%. Additionally, its close peers, such as Federated Hermes, Inc. (FHI - Free Report) and T. Rowe Price Group, Inc. (TROW - Free Report) , gained 13.6% and 1.2%, respectively, over the same period.
Price Performance
Image Source: Zacks Investment Research
Does BEN stock have more upside left despite showing recent strength in share price? Let us find out.
Factors Aiding BEN Stock
Acquisitions and Strategic Partnerships to Drive Expansion: Franklin has been actively expanding its business through acquisitions and partnerships to strengthen its investment capabilities and diversify its offerings. In April 2026, the company agreed to acquire 250 Digital, a crypto investment firm spun out of CoinFund, and launched the Franklin Crypto unit to enhance its digital asset capabilities and institutional reach. Earlier, in February 2026, Franklin partnered with Binance to introduce an off-exchange institutional collateral program aimed at improving the safety and capital efficiency of digital asset trading.
The company has also been focusing on strengthening its alternatives and technology platforms. In November 2025, Franklin partnered with Wand AI to scale agentic AI across research and operations as part of its digital transformation initiatives. In October 2025, it acquired Apera Asset Management, which increased its global alternative credit AUM to more than $90 billion and expanded its overall alternatives platform to nearly $270 billion. These initiatives are expected to support long-term growth and strengthen its alternatives platform.
Consistent AUM Expansion: The company has witnessed solid growth in its assets under management (AUM) balance over the years, recording a CAGR of 3.1% over the last five fiscal years (ending fiscal 2025), despite declines in fiscal 2022 and 2025. The growth trend continued in the first six months of fiscal 2026.
AUM Growth Trend
Image Source: Franklin Resources, Inc.
Franklin’s efforts to diversify into asset classes witnessing rising client demand, particularly alternative investments, are expected to support AUM growth in the coming period. Further, its regionally focused distribution model has strengthened the non-U.S. business and supported favorable net flows.
Improving Revenue Base: Franklin has benefited from organic growth over the years. Though revenues declined in fiscal 2023, the company recorded a CAGR of 1.9% over the last three fiscal years ending fiscal 2025. The growth momentum continued in the first six months of fiscal 2026.
The company’s strong distribution platform has supported diversified inflows across funds, vehicles and asset classes, driving business growth. Further, its early presence in several international markets has provided a first-mover advantage. Its efforts to diversify revenue streams, supported by a solid fixed-income pipeline, are expected to aid revenue growth going forward. The Zacks Consensus Estimate for sales is pegged at 3.6% and 1% year-over-year growth for fiscal 2026 and 2027, respectively.
Sales Estimates
Image Source: Zacks Investment Research
Strong Liquidity Position Supports Capital Distribution Activities: The company enjoys a solid balance sheet position. As of March 31, 2026, the company had no short-term debt. Further, its liquidity position, comprising cash and cash equivalents, receivables and investments, was $6.6 billion. Thus, Franklin’s strong liquidity position provides ample financial flexibility to support capital distribution activities while meeting operational and growth needs. In December 2025, its board authorized the repurchase of an additional 20.8 million shares, taking the total authorization to 40 million shares. As of March 31, 2026, shares worth $35.9 million remained available under the authorization.
Apart from the share repurchase program, the company pays regular dividends. In December 2025, BEN raised its cash dividend by 3.1% to 33 cents per share. Over the past five years, the company has raised its dividend five times. Its current dividend yield stands at 4.12%, above the industry average of 2.49%. Meanwhile, Federated Hermes and T. Rowe Price offer dividend yields of 2.72% and 5.05%, respectively.
Dividend Yield
These capital distribution activities, combined with a strong liquidity profile, will likely stoke investors’ confidence in the stock.
Concerns Prevailing for Franklin Resources
Volatile Investment Management Fees: Franklin’s investment management fees, which accounted for 79.3% of total revenues as of March 31, 2026, have witnessed a volatile trend over the years. The metric largely depends on the level and mix of AUM, making it vulnerable to market fluctuations, foreign exchange movements and regulatory changes.
While investment management fees declined in fiscal 2020 and fiscal 2023, the metric improved in fiscal 2021, fiscal 2022, fiscal 2024 and fiscal 2025. The uptrend continued in the first six months of fiscal 2026. Nevertheless, unfavorable changes in AUM and market conditions may hurt fee revenues going forward.
Rising Expense Base Remains a Concern: Franklin’s escalating expense base continues to be a headwind. Though expenses declined in 2022 due to lower sales and marketing costs and synergy benefits from the Legg Mason acquisition, the metric witnessed a CAGR of 7.9% over the last three years ended fiscal 2025. The uptrend continued in the first six months of fiscal 2026.
Further, the Apera acquisition is expected to add nearly $30 million in expenses in fiscal 2026. Ongoing technology investments, higher fundraising-related costs and integration expenses are likely to keep costs elevated and pressure bottom-line growth.
BEN's Earnings Estimates and Valuation Analysis
Analysts are optimistic regarding Franklin’s earnings growth potential. Over the past week, the Zacks Consensus Estimate for the company’s fiscal 2026 and 2027 earnings has been revised upward. The estimated figures reflect respective year-over-year growth rates of 22.1% and 8.5%.
Earnings Estimate
Image Source: Zacks Investment Research
In terms of valuation, BEN stock appears inexpensive relative to the industry. The company is currently trading at a forward 12-month price-to-earnings (P/E) multiple of 11.23X, which is below the industry’s P/E of 13.95X.
Price-to-Earnings F12M
Image Source: Zacks Investment Research
Meanwhile, Federated Hermes holds a P/E ratio of 10.56X, while T. Rowe Price’s P/E ratio stands at 10.74X.
Parting Thoughts on Franklin Resources
Franklin’s strategic acquisitions and partnerships, expanding alternatives platform, and growing focus on customized portfolio solutions are expected to support long-term AUM and revenue growth. Further, strong liquidity and consistent capital distribution activities underscore the company’s financial stability and shareholder-friendly approach.
The company’s improving earnings performance, diversified investment offerings and strengthening global distribution platform also position it well for long-term growth. Additionally, BEN stock appears attractively valued relative to the industry.
However, volatility in investment management fees due to market fluctuations and a rising expense base remains a concern. Higher technology investments, integration costs and fundraising-related expenses are likely to pressure margins in the near term.
Hence, it may not be the ideal time to buy the stock. However, long-term investors with existing holdings may find value in maintaining their stake, given its solid fundamentals.
The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.