Is Franklin Resources Stock Underperforming the S&P 500?

Company Overview - Franklin Resources, Inc. (BEN) is an investment management firm based in San Mateo, California, with a market cap of $12.3 billion, providing a diversified range of investment products across equities, fixed income, multi-asset, alternatives, and ETFs [1] - BEN is classified as a "large-cap stock," highlighting its size, influence, and dominance in the asset management industry, with a focus on active management and global distribution [2] Financial Performance - BEN's operating revenue increased by 6% year-over-year to $2.3 billion, and its adjusted EPS rose by 13.6% to $0.67, exceeding consensus estimates by 17.5% [5] - Despite the revenue and EPS growth, the adjusted operating margin fell by 30 basis points, and both ending and average Assets Under Management (AUM) declined compared to the previous year [5] Stock Performance - Shares of BEN have decreased by 9.4% from its 52-week high of $26.08, and have declined 3% over the past three months, underperforming the S&P 500 Index's 3% rise [3] - Over the past 52 weeks, BEN has gained 7.5%, lagging behind the S&P 500's 12.7% increase, but on a year-to-date basis, shares are up 16.4%, slightly outperforming the S&P 500's 15.9% return [4] - BEN has been trading above its 200-day moving average since early May and above its 50-day moving average since early December, indicating a bullish trend [4] Competitive Position - BEN has outperformed its rival, BlackRock, Inc. (BLK), which gained 1.3% over the past 52 weeks and 5.2% year-to-date [6] - Analysts remain cautious about BEN's prospects, with a consensus rating of "Hold" from 12 analysts and a mean price target of $24.36, suggesting a 2.8% premium to its current price levels [6]