BEN.NYSEFranklin Resources INC
SCHEDULE 13G/A: Franklin Resources Discloses 1.7% Beneficial Ownership in Applied Therapeutics
Sentiment:
Beneficial Ownership Report
Franklin Resources, Inc. has filed an amended Schedule 13G, reporting a 1.7% beneficial ownership stake in Applied Therapeutics, Inc. as of December 31, 2024.
Summary
- Franklin Resources, Inc. (FRI) reported beneficial ownership of 2,003,400 shares of Common Stock in Applied Therapeutics, Inc., representing 1.7% of the class.
- The filing is an Amendment No. 6 to a Schedule 13G, indicating previous filings regarding this ownership.
- FRI holds sole voting power and sole dispositive power over all 2,003,400 shares.
- The beneficial ownership is primarily held through FRI's investment management subsidiaries: Franklin Advisers, Inc. (2,003,338 shares) and Fiduciary Trust International LLC (62 shares).
- Charles B. Johnson and Rupert H. Johnson, Jr., principal stockholders of FRI, are also listed as reporting persons but report 0% direct beneficial ownership, disclaiming pecuniary interest in the reported securities.
- The securities were acquired and are held in the ordinary course of business and not for the purpose of changing or influencing the control of Applied Therapeutics, Inc.
Sentiment
Score: 5
Explanation: This is a routine compliance filing (Schedule 13G) disclosing beneficial ownership, which is inherently neutral in sentiment as it reports factual ownership data without commentary on company performance or outlook.
Positives
- The filing explicitly states that the securities were acquired and are held in the ordinary course of business, indicating a passive investment rather than an activist stance.
- The reporting persons certify that the shares were not acquired or held for the purpose of or with the effect of changing or influencing the control of the issuer, which can provide stability to the company's management.
Risks
- The reporting persons, including Franklin Resources, Inc., Charles B. Johnson, and Rupert H. Johnson, Jr., disclaim that they are a 'group' within the meaning of Rule 13d-5 under the Act, mitigating the perception of coordinated action that could trigger additional regulatory scrutiny or obligations.
Future Outlook
NA
Industry Context
NA
Corporate Governance
| Change Type | Description | Effective Date | Impact Assessment |
|---|---|---|---|
| Reporting Structure Clarification | The document details the reporting structure for beneficial ownership, clarifying how shares held by various investment management subsidiaries of Franklin Resources, Inc. are aggregated and disaggregated for reporting purposes, in conformity with SEC guidelines (1998 Release). | NA | Enhances transparency regarding the complex ownership structure of a large institutional investor and its affiliates. |
| Power of Attorney Grant | Charles B. Johnson and Rupert H. Johnson, Jr. granted a Limited Power of Attorney to specific individuals (e.g., Thomas C. Mandia) to prepare, execute, and file SEC Forms ID, Schedules 13D/13G, and Forms 3/4/5 on their behalf. | 2023-12-11 | Streamlines the compliance process for SEC reporting obligations for key individuals associated with Franklin Resources, Inc. |
| Joint Filing Agreement | A joint filing agreement confirms that Franklin Resources, Inc., Charles B. Johnson, and Rupert H. Johnson, Jr. are jointly filing this Schedule 13G. | 2025-01-24 | Ensures compliance with SEC rules for multiple parties reporting on the same securities. |
| Group Status Disclaimer | Franklin Resources, Inc., its principal shareholders, and investment management subsidiaries explicitly state their belief that they are not a 'group' within the meaning of Rule 13d-5 under the Exchange Act. | NA | Clarifies their legal position regarding coordinated control or influence over the issuer, potentially avoiding more stringent reporting requirements or implications of collective action. |
Stakeholder Impact
- Shareholders of Applied Therapeutics, Inc. are informed of the beneficial ownership stake held by a significant institutional investor, Franklin Resources, Inc., which can influence market perception and trading activity.
Key Dates
| Date | Description |
|---|---|
| 2023-12-11 | Date of execution for the Limited Power of Attorney for Charles B. Johnson and Rupert H. Johnson, Jr. |
| 2024-12-31 | Date of event which requires filing of this statement (end of reporting period). |
| 2025-01-24 | Date of filing of this Schedule 13G. |
Keywords
Applied Therapeutics, Franklin Resources, Schedule 13G, beneficial ownership, common stock, institutional investor, SEC filing, investment management
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