Capital World Investors Reduces Stake in Franco-Nevada Corporation $FNV

Capital World Investors reduced its position in Franco-Nevada Corporation (NYSE:FNV) (TSE:FNV) by 34.8% in the 4th quarter, HoldingsChannel.com reports. The firm owned 5,207,241 shares of the basic materials company’s stock after selling 2,775,309 shares during the period. Capital World Investors’ holdings in Franco-Nevada were worth $1,079,387,000 at the end of the most recent reporting period.

Several other hedge funds have also recently bought and sold shares of FNV. AQR Capital Management LLC purchased a new position in Franco-Nevada during the first quarter worth $241,000. NewEdge Advisors LLC boosted its holdings in shares of Franco-Nevada by 16.7% during the first quarter. NewEdge Advisors LLC now owns 6,585 shares of the basic materials company’s stock worth $1,038,000 after purchasing an additional 943 shares during the last quarter. Intech Investment Management LLC boosted its holdings in shares of Franco-Nevada by 118.3% during the first quarter. Intech Investment Management LLC now owns 9,286 shares of the basic materials company’s stock worth $1,460,000 after purchasing an additional 5,032 shares during the last quarter. Acadian Asset Management LLC boosted its holdings in shares of Franco-Nevada by 800.0% during the first quarter. Acadian Asset Management LLC now owns 2,700 shares of the basic materials company’s stock worth $424,000 after purchasing an additional 2,400 shares during the last quarter. Finally, Marshall Wace LLP acquired a new stake in shares of Franco-Nevada during the second quarter worth $1,477,000. 77.06% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several equities research analysts have recently issued reports on FNV shares. National Bank Financial upgraded Franco-Nevada from a “sector perform” rating to an “outperform” rating in a report on Wednesday, May 13th. Zacks Research cut Franco-Nevada from a “strong-buy” rating to a “hold” rating in a report on Tuesday, March 31st. HC Wainwright restated a “buy” rating and set a $305.00 price objective on shares of Franco-Nevada in a report on Wednesday, May 13th. TD Securities upgraded Franco-Nevada from a “hold” rating to a “buy” rating and set a $291.00 price objective on the stock in a report on Wednesday, May 20th. Finally, Weiss Ratings upgraded Franco-Nevada from a “hold (c+)” rating to a “buy (b)” rating in a report on Friday, March 20th. Eleven analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $271.00.

Franco-Nevada Stock Performance

Shares of NYSE FNV opened at $218.43 on Monday. Franco-Nevada Corporation has a 1 year low of $152.89 and a 1 year high of $285.67. The firm has a market cap of $42.13 billion, a price-to-earnings ratio of 30.76, a PEG ratio of 1.91 and a beta of 0.34. The stock’s 50-day simple moving average is $239.79 and its 200-day simple moving average is $235.55.

Franco-Nevada (NYSE:FNV) (TSE:FNV) last announced its quarterly earnings data on Tuesday, May 12th. The basic materials company reported $2.38 earnings per share for the quarter, beating the consensus estimate of $2.09 by $0.29. The firm had revenue of $650.70 million during the quarter, compared to analyst estimates of $634.43 million. Franco-Nevada had a return on equity of 18.10% and a net margin of 65.12%.Franco-Nevada’s quarterly revenue was up 76.6% on a year-over-year basis. During the same period in the previous year, the company earned $1.07 earnings per share. As a group, research analysts predict that Franco-Nevada Corporation will post 8.85 EPS for the current year.

Franco-Nevada Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, June 25th. Stockholders of record on Thursday, June 11th will be issued a dividend of $0.44 per share. The ex-dividend date of this dividend is Thursday, June 11th. This represents a $1.76 annualized dividend and a dividend yield of 0.8%. Franco-Nevada’s dividend payout ratio 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.