FRANKLIN RESOURCES INC recently filed their 13F report for the second quarter of 2022, which ended on 2022-06-30.
The 13F report details which stocks were in a guru’s equity portfolio at the end of the quarter, though investors should note that these filings are limited in scope, containing only a snapshot of long positions in U.S.-listed stocks and American depository receipts as of the quarter’s end. They are not required to include international holdings, short positions or other types of investments. Still, even this limited filing can provide valuable information.
Franklin Resources Inc. is a holding company that, when grouped with its various subsidiaries, is also known as Franklin Templeton Investments. The company was founded in 1847 by Rupert Johnson, Sr., who named the company after Benjamin Franklin because he wanted the company values to reflect Franklin’s “ideas of frugality and prudence when it came to saving and investing.” His son, Charles Johnson, would take over as CEO in 1957, slowly building the company until it went public in 1971, giving the company enough capital to facilitate growth. Just two years later, it would acquire Winfield & Company, bringing total assets under management to close to a quarter billion. Franklin Money Fund, the company’s first billion-dollar fund, would be launched in 1979, reflecting tremendous growth that would continue through the 1980s. From just 1982 to 1987, the assets under management for Franklin would grow from $2 billion to over $40 billion with a heavy emphasis on fixed income investments, which management would address. The 1990s would mark a period of diversification, expanding globally throughout Europe and Asia. In 1992, the company acquired Templeton, Galbraith & Hansberger Ltd., leading to the same of Franklin Templeton. Today the company specializes in conservatively managed mutual funds, offering products under Franklin, Templeton, Mutual Series and Fiduciary. It has over 200 different mutual funds, some notable ones including the Templeton Growth Fund, Mutual Shares Fund, Mutual Discovery Fund. And Templeton Growth (Euro) Fund A. Franklin Resources now has over 8 thousand employees all around the globe with offices in 35 countries and clients in over 150 countries, generating revenues of over $8 billion with total assets from over 25 million private, professional, and institutional investors amounting to over $15 billion. In 2013, the chairman Charlie Johnson retired with Greg Johnson replacing him to become the chairman and CEO.
As of the latest 13F report, the guru’s equity portfolio contained 2313 stocks valued at a total of $199.47Bil. The top holdings were MSFT(3.33%), AMZN(1.70%), and AAPL(1.68%).
According to GuruFocus data, these were FRANKLIN RESOURCES INC’s top five trades of the quarter.
Templeton Global Income Fund
During the quarter, FRANKLIN RESOURCES INC bought 195,440 shares of NYSE:GIM for a total holding of 3,975,434. The trade had a 0% impact on the equity portfolio. During the quarter, the stock traded for an average price of $4.74.
On 08/12/2022, Templeton Global Income Fund traded for a price of $4.81 per share and a market cap of $494.10Mil. The stock has returned -4.27% over the past year.
GuruFocus gives the company a financial strength rating of 8 out of 10 and a profitability rating of 2 out of 10.
In terms of valuation, Templeton Global Income Fund has a price-book ratio of 0.89.
Verizon Communications Inc
FRANKLIN RESOURCES INC reduced their investment in NYSE:VZ by 13,291,252 shares. The trade had a 0.28% impact on the equity portfolio. During the quarter, the stock traded for an average price of $50.59.
On 08/12/2022, Verizon Communications Inc traded for a price of $45.0385 per share and a market cap of $188.86Bil. The stock has returned -14.58% over the past year.
GuruFocus gives the company a financial strength rating of 4 out of 10 and a profitability rating of 7 out of 10.
In terms of valuation, Verizon Communications Inc has a price-earnings ratio of 9.00, a price-book ratio of 2.19, a price-earnings-to-growth (PEG) ratio of 3.10, a EV-to-Ebitda ratio of 7.68 and a price-sales ratio of 1.39.
The price-to-GF Value ratio is 0.78, earning the stock a GF Value rank of 10.
Merck & Co Inc
FRANKLIN RESOURCES INC reduced their investment in NYSE:MRK by 6,727,813 shares. The trade had a 0.22% impact on the equity portfolio. During the quarter, the stock traded for an average price of $88.55.
On 08/12/2022, Merck & Co Inc traded for a price of $90.045 per share and a market cap of $227.31Bil. The stock has returned 21.58% over the past year.
GuruFocus gives the company a financial strength rating of 6 out of 10 and a profitability rating of 8 out of 10.
In terms of valuation, Merck & Co Inc has a price-earnings ratio of 13.75, a price-book ratio of 5.26, a price-earnings-to-growth (PEG) ratio of 1.80, a EV-to-Ebitda ratio of 10.78 and a price-sales ratio of 3.99.
The price-to-GF Value ratio is 0.85, earning the stock a GF Value rank of 9.
Sempra Energy
FRANKLIN RESOURCES INC reduced their investment in NYSE:SRE by 3,258,445 shares. The trade had a 0.22% impact on the equity portfolio. During the quarter, the stock traded for an average price of $160.7.
On 08/12/2022, Sempra Energy traded for a price of $164.69 per share and a market cap of $51.78Bil. The stock has returned 27.80% over the past year.
GuruFocus gives the company a financial strength rating of 4 out of 10 and a profitability rating of 7 out of 10.
In terms of valuation, Sempra Energy has a price-earnings ratio of 46.15, a price-book ratio of 1.98, a EV-to-Ebitda ratio of 22.96 and a price-sales ratio of 3.69.
The price-to-GF Value ratio is 1.07, earning the stock a GF Value rank of 5.
BlackRock Inc
During the quarter, FRANKLIN RESOURCES INC bought 689,874 shares of NYSE:BLK for a total holding of 1,343,027. The trade had a 0.21% impact on the equity portfolio. During the quarter, the stock traded for an average price of $652.94.
On 08/12/2022, BlackRock Inc traded for a price of $745.485 per share and a market cap of $112.17Bil. The stock has returned -17.04% over the past year.
GuruFocus gives the company a financial strength rating of 6 out of 10 and a profitability rating of 9 out of 10.
In terms of valuation, BlackRock Inc has a price-earnings ratio of 19.62, a price-book ratio of 3.03, a price-earnings-to-growth (PEG) ratio of 1.53, a EV-to-Ebitda ratio of 14.36 and a price-sales ratio of 5.91.
The price-to-GF Value ratio is 0.98, earning the stock a GF Value rank of 7.
Please note, the numbers and facts quoted are as of the writing of this article and may not factor in the latest trading data or company announcements.
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