Franco-Nevada (NYSE:FNV) Reaches New 52-Week High – Here’s Why

Shares of Franco-Nevada Corporation (NYSE:FNV) (TSE:FNV) hit a new 52-week high during mid-day trading on Wednesday . The company traded as high as $255.43 and last traded at $253.0410, with a volume of 1309472 shares changing hands. The stock had previously closed at $243.75.

Analysts Set New Price Targets

A number of research analysts have recently weighed in on FNV shares. HC Wainwright increased their price target on Franco-Nevada from $200.00 to $210.00 and gave the company a “buy” rating in a research note on Tuesday, November 4th. Scotiabank upped their price objective on Franco-Nevada from $184.00 to $225.00 and gave the company a “sector perform” rating in a report on Thursday, October 23rd. Zacks Research cut Franco-Nevada from a “strong-buy” rating to a “hold” rating in a report on Monday, December 8th. Raymond James Financial upped their price target on Franco-Nevada from $218.00 to $234.00 and gave the company an “outperform” rating in a research note on Friday, October 10th. Finally, UBS Group lifted their price objective on shares of Franco-Nevada from $260.00 to $270.00 and gave the stock a “buy” rating in a research note on Monday, December 1st. One research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and six have issued a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $232.75.

Franco-Nevada Stock Performance

The stock has a 50-day moving average of $214.36 and a 200-day moving average of $196.86. The firm has a market cap of $49.83 billion, a price-to-earnings ratio of 54.18, a price-to-earnings-growth ratio of 1.43 and a beta of 0.48.

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

Franco-Nevada Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, December 18th. Shareholders of record on Thursday, December 4th were given a dividend of $0.38 per share. The ex-dividend date of this dividend was Thursday, December 4th. This represents a $1.52 annualized dividend and a yield of 0.6%. Franco-Nevada’s payout ratio is 31.87%.

Hedge Funds Weigh In On Franco-Nevada

Several hedge funds have recently modified their holdings of the stock. GAMMA Investing LLC raised its holdings in Franco-Nevada by 112.3% during the fourth quarter. GAMMA Investing LLC now owns 121 shares of the basic materials company’s stock worth $25,000 after acquiring an additional 64 shares in the last quarter. Burkett Financial Services LLC acquired a new position in shares of Franco-Nevada during the 3rd quarter worth approximately $28,000. Stephens Consulting LLC bought a new stake in shares of Franco-Nevada during the 4th quarter worth approximately $36,000. MTM Investment Management LLC bought a new stake in shares of Franco-Nevada during the 2nd quarter worth approximately $32,000. Finally, Smartleaf Asset Management LLC boosted its holdings in shares of Franco-Nevada by 600.0% in the 2nd quarter. Smartleaf Asset Management LLC now owns 196 shares of the basic materials company’s stock valued at $32,000 after buying an additional 168 shares during the last quarter. Institutional investors own 77.06% of the company’s stock.

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.