Franco-Nevada (NYSE:FNV) Share Price Breaks Above 200 Day Moving Average – Should You Sell?

Shares of Franco-Nevada Corporation (NYSE:FNV) (TSE:FNV) passed above its two hundred day moving average during trading on Wednesday. The stock has a two hundred day moving average of $240.02 and traded as high as $243.54. Franco-Nevada shares last traded at $242.4210, with a volume of 868,172 shares.

Analyst Ratings Changes

FNV has been the topic of several research reports. Scotiabank reduced their price target on shares of Franco-Nevada from $290.00 to $274.00 and set a “sector perform” rating on the stock in a research report on Tuesday, July 14th. Royal Bank Of Canada increased their price objective on Franco-Nevada from $285.00 to $300.00 and gave the company an “outperform” rating in a report on Wednesday, September 16th. Bank of America dropped their target price 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. Weiss Ratings upgraded Franco-Nevada from a “buy (b-)” rating to a “buy (b)” rating in a research note on Thursday, October 8th. Finally, Zacks Research upgraded shares of Franco-Nevada from a “strong sell” rating to a “hold” rating in a research note on Tuesday, August 11th. Ten investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $275.30.

Franco-Nevada Price Performance

The stock has a market cap of $46.77 billion, a price-to-earnings ratio of 31.69, a P/E/G ratio of 2.63 and a beta of 0.34. The stock’s 50-day moving average is $249.48 and its 200 day moving average is $240.02.

Franco-Nevada (NYSE:FNV) (TSE:FNV) last released its earnings results on Tuesday, August 11th. The basic materials company reported $1.81 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.95 by ($0.14). The business had revenue of $580.90 million for the quarter, compared to analyst estimates of $616.66 million. Franco-Nevada had a return on equity of 18.58% and a net margin of 63.79%. The business’s revenue for the quarter was up 57.3% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.24 EPS. Analysts anticipate that Franco-Nevada Corporation will post 7.39 EPS for the current year.

Franco-Nevada Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, September 24th. Investors of record on Thursday, September 10th were given a $0.44 dividend. The ex-dividend date was Thursday, September 10th. This represents a $1.76 annualized dividend and a dividend yield of 0.7%. Franco-Nevada’s payout ratio is currently 23.01%.

Institutional Trading of Franco-Nevada

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in FNV. Silicon Valley Capital Partners purchased a new position in shares of Franco-Nevada during the second quarter valued at approximately $31,000. Transamerica Financial Advisors LLC purchased a new position in shares of Franco-Nevada in the 2nd quarter worth about $33,000. Global Retirement Partners LLC acquired a new position in Franco-Nevada during the second quarter valued at approximately $35,000. Dunhill Financial LLC acquired a new stake in Franco-Nevada in the 2nd quarter valued at $36,000. Finally, Laurel Wealth Advisors LLC purchased a new stake in shares of Franco-Nevada in the third quarter worth about $36,000. Hedge funds and other institutional investors own 77.06% of the company’s stock.

Franco-Nevada Company Profile

Franco-Nevada Corporation is a gold-focused royalty and streaming company. Rather than operating mines directly, it provides capital to mining and energy companies in exchange for the right to receive a portion of future production or revenue from their assets. Its portfolio includes royalties, streams and other interests tied primarily to gold, as well as silver, platinum group metals, base metals and energy assets.

The company’s business model provides exposure to commodity production while generally limiting its direct responsibility for mine development, operating costs and capital expenditures.