Franco-Nevada (NYSE:FNV) Reaches New 12-Month High After Dividend Announcement

Shares of Franco-Nevada Corporation (NYSE:FNV) (TSE:FNV) reached a new 52-week high on Tuesday after the company announced a dividend. The stock traded as high as $266.61 and last traded at $259.5420, with a volume of 1436353 shares changing hands. The stock had previously closed at $255.75.

The newly announced dividend which will be paid on Thursday, March 26th. Stockholders of record on Thursday, March 12th will be issued a $0.44 dividend. This is a boost from Franco-Nevada’s previous quarterly dividend of $0.38. The ex-dividend date is Thursday, March 12th. This represents a $1.76 annualized dividend and a dividend yield of 0.7%. Franco-Nevada’s dividend payout ratio (DPR) is 31.87%.

Wall Street Analysts Forecast Growth

A number of research firms recently commented on FNV. Bank of America lifted their price target on shares of Franco-Nevada from $211.00 to $220.00 and gave the stock a “neutral” rating in a research note on Thursday, October 16th. Jefferies Financial Group restated a “hold” rating and set a $228.00 target price on shares of Franco-Nevada in a research report on Sunday, December 7th. UBS Group increased their price target on Franco-Nevada from $260.00 to $270.00 and gave the stock a “buy” rating in a report on Monday, December 1st. Royal Bank Of Canada raised Franco-Nevada from a “sector perform” rating to an “outperform” rating and raised their price target for the stock from $225.00 to $250.00 in a research note on Wednesday, December 10th. Finally, Canaccord Genuity Group raised Franco-Nevada from a “hold” rating to a “strong-buy” rating in a research report on Wednesday, October 22nd. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and six have assigned a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $240.00.

Franco-Nevada Stock Up 1.5%

The firm has a 50 day moving average of $216.84 and a 200-day moving average of $198.75. The company has a market cap of $50.04 billion, a P/E ratio of 54.41, a PEG ratio of 1.44 and a beta of 0.48.

Franco-Nevada (NYSE:FNV) (TSE:FNV) last issued its earnings results on Monday, November 3rd. The basic materials company reported $1.43 earnings per share for the quarter, beating analysts’ consensus estimates of $1.37 by $0.06. Franco-Nevada had a return on equity of 13.94% and a net margin of 59.48%.The business had revenue of $487.70 million during the quarter, compared to analyst estimates of $448.51 million. During the same period in the previous year, the company posted $0.80 EPS. Franco-Nevada’s revenue was up 76.9% on a year-over-year basis. On average, research analysts predict that Franco-Nevada Corporation will post 3.09 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in FNV. GAMMA Investing LLC lifted its position in shares of Franco-Nevada by 112.3% in the 4th quarter. GAMMA Investing LLC now owns 121 shares of the basic materials company’s stock worth $25,000 after purchasing an additional 64 shares during the period. Burkett Financial Services LLC bought a new position in Franco-Nevada in the third quarter worth approximately $28,000. Private Trust Co. NA bought a new position in Franco-Nevada in the fourth quarter worth approximately $29,000. MTM Investment Management LLC purchased a new stake in Franco-Nevada during the second quarter worth $32,000. Finally, Smartleaf Asset Management LLC boosted its position in Franco-Nevada by 600.0% during the 2nd quarter. Smartleaf Asset Management LLC now owns 196 shares of the basic materials company’s stock valued at $32,000 after acquiring an additional 168 shares in the last quarter. 77.06% of the stock is currently owned by institutional investors.

Franco-Nevada Company Profile

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.