Franco-Nevada Corporation (NYSE:FNV) Receives Consensus Recommendation of “Moderate Buy” from Analysts

Shares of Franco-Nevada Corporation (NYSE:FNV) (TSE:FNV) have been assigned a consensus rating of “Moderate Buy” from the fifteen analysts that are presently covering the stock, MarketBeat reports. One analyst has rated the stock with a sell rating, three have issued a hold rating and eleven have assigned a buy rating to the company. The average 1 year price target among brokerages that have issued ratings on the stock in the last year is $273.40.

A number of brokerages have commented on FNV. UBS Group decreased their price objective on Franco-Nevada from $310.00 to $280.00 and set a “buy” rating for the company in a research report on Tuesday, June 30th. TD Cowen raised shares of Franco-Nevada from a “hold” rating to a “buy” rating and reduced their price target for the stock from $292.00 to $291.00 in a research report on Wednesday, May 20th. Canaccord Genuity Group upgraded shares of Franco-Nevada from a “hold” rating to a “buy” rating in a report on Wednesday, April 29th. Jefferies Financial Group decreased their price target on shares of Franco-Nevada from $258.00 to $245.00 and set a “hold” rating for the company in a report on Monday, July 6th. Finally, Bank of America lowered their price objective on shares of Franco-Nevada from $276.00 to $238.00 and set a “neutral” rating on the stock in a research report on Thursday, July 9th.

Hedge Funds Weigh In On Franco-Nevada

Hedge funds have recently modified their holdings of the stock. GAMMA Investing LLC grew its stake in Franco-Nevada by 112.3% in the fourth quarter. GAMMA Investing LLC now owns 121 shares of the basic materials company’s stock valued at $25,000 after purchasing an additional 64 shares in the last quarter. Transamerica Financial Advisors LLC acquired a new position in Franco-Nevada in the 4th quarter worth about $25,000. Private Trust Co. NA acquired a new position in Franco-Nevada in the 4th quarter worth about $29,000. Smartleaf Asset Management LLC raised its stake in shares of Franco-Nevada by 600.0% during the 2nd quarter. Smartleaf Asset Management LLC now owns 196 shares of the basic materials company’s stock worth $32,000 after purchasing an additional 168 shares in the last quarter. Finally, Navalign LLC acquired a new stake in shares of Franco-Nevada during the 4th quarter valued at about $34,000. 77.06% of the stock is owned by institutional investors and hedge funds.

Franco-Nevada Stock Performance

Shares of NYSE:FNV opened at $200.81 on Monday. The firm has a 50 day simple moving average of $218.63 and a 200 day simple moving average of $236.61. Franco-Nevada has a 52 week low of $154.11 and a 52 week high of $285.67. The company has a market cap of $38.73 billion, a PE ratio of 28.28, a price-to-earnings-growth ratio of 1.69 and a beta of 0.36.

Franco-Nevada (NYSE:FNV) (TSE:FNV) last announced its earnings results on Tuesday, May 12th. The basic materials company reported $2.38 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.09 by $0.29. The company had revenue of $650.70 million for the quarter, compared to the consensus estimate of $634.43 million. Franco-Nevada had a net margin of 65.12% and a return on equity of 18.10%. The company’s revenue was up 76.6% on a year-over-year basis. During the same period in the previous year, the business earned $1.07 EPS. On average, equities analysts predict that Franco-Nevada will post 8.23 earnings per share for the current year.

Franco-Nevada Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, June 25th. Shareholders of record on Thursday, June 11th were paid a dividend of $0.44 per share. The ex-dividend date of this dividend was Thursday, June 11th. This represents a $1.76 dividend on an annualized basis and a dividend yield of 0.9%. Franco-Nevada’s dividend payout ratio (DPR) is 24.79%.

About Franco-Nevada

Franco-Nevada Corporation is a Toronto-based royalty and streaming company that specializes in securing and managing long-term interests in mining properties. The firm focuses primarily on precious metals, particularly gold, while also holding interests related to silver, copper, platinum-group metals and select base metals. Rather than operating mines directly, Franco-Nevada acquires royalty and streaming agreements that entitle it to a percentage of production or revenue from producing and developing assets in exchange for upfront or staged financing.

The company’s business model centers on providing capital to mining companies in return for a sustained share of production or metal revenue, which can reduce exposure to operating and capital cost risks typical of mine operators.