Jennifer Johnson, President and CEO of Franklin Resources (BEN), recently bought 18,900 shares. The buy increased her stake by less than 1%, and came to a total cost of $396,000.
This marks the first insider buy since June, when a major holder bought 300,000 shares over two transactions, totaling over $6.8 million. Going further back to 2023, two company insiders sold shares. Those represent the only insider sales over the past two years.
Overall, Franklin Resources insiders own 46.7% of shares.
The asset manager is down 22% over the past year. That’s about in-line with the company’s 25% drop in earnings. Revenues are up 8% over the same time.
At current prices, Franklin Resources trades at less than 8 times forward earnings. The asset management space can be prone to changes depending on market moves, but with interest rates set to decline, investors may see further gains in the quarters ahead.
Action to take: Investors may like shares here, as the stock is starting to show signs of life after hitting a 52-week low a few weeks back. At current prices, Franklin also pays a 6% dividend.
For traders, more upside is likely ahead in the coming months. The January 2025 $22.50 calls, last trading for about $0.70, could see high double-digit returns or better into next year.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.