Franco-Nevada (NYSE:FNV) Sets New 12-Month High on Analyst Upgrade

Franco-Nevada Corporation (NYSE:FNV) (TSE:FNV)’s stock price reached a new 52-week high on Monday after Zacks Research upgraded the stock from a hold rating to a strong-buy rating. The company traded as high as $285.67 and last traded at $276.9580, with a volume of 121813 shares traded. The stock had previously closed at $280.61.

Several other research analysts have also weighed in on FNV. 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. Scotiabank upped their price target on Franco-Nevada from $225.00 to $283.00 and gave the stock a “sector perform” rating in a report on Monday, January 26th. TD Securities dropped their price objective on Franco-Nevada from $247.00 to $225.00 and set a “hold” rating for the company in a research note on Wednesday, November 5th. UBS Group reaffirmed a “buy” rating and set a $310.00 price objective on shares of Franco-Nevada in a report on Friday, January 30th. Finally, HC Wainwright upped their target price on Franco-Nevada from $210.00 to $285.00 and gave the company a “buy” rating in a report on Friday, February 13th. 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 stock. Based on data from MarketBeat, Franco-Nevada has a consensus rating of “Moderate Buy” and a consensus target price of $254.38.

Institutional Investors Weigh In On Franco-Nevada

Large investors have recently bought and sold shares of the stock. Vanguard Group Inc. raised its holdings in shares of Franco-Nevada by 1.4% in the fourth quarter. Vanguard Group Inc. now owns 8,330,234 shares of the basic materials company’s stock worth $1,726,741,000 after acquiring an additional 113,916 shares during the last quarter. Van ECK Associates Corp increased its position in Franco-Nevada by 12.8% during the 4th quarter. Van ECK Associates Corp now owns 7,441,133 shares of the basic materials company’s stock worth $1,542,402,000 after purchasing an additional 842,132 shares in the last quarter. Bank of Montreal Can raised its stake in Franco-Nevada by 8.9% in the 3rd quarter. Bank of Montreal Can now owns 5,560,980 shares of the basic materials company’s stock valued at $1,237,510,000 after purchasing an additional 454,175 shares during the last quarter. First Eagle Investment Management LLC lifted its holdings in Franco-Nevada by 26.5% in the 4th quarter. First Eagle Investment Management LLC now owns 5,123,444 shares of the basic materials company’s stock valued at $1,062,037,000 after purchasing an additional 1,074,257 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership boosted its stake in shares of Franco-Nevada by 35.2% during the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 3,220,029 shares of the basic materials company’s stock worth $528,289,000 after purchasing an additional 838,853 shares during the last quarter. Institutional investors and hedge funds own 77.06% of the company’s stock.

Franco-Nevada Trading Down 5.7%

The company has a market capitalization of $50.52 billion, a price-to-earnings ratio of 54.94, a PEG ratio of 3.70 and a beta of 0.45. The company’s 50 day simple moving average is $242.87 and its 200-day simple moving average is $215.32.

Franco-Nevada Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, March 26th. Shareholders of record on Thursday, March 12th will be paid a $0.44 dividend. This represents a $1.76 annualized dividend and a yield of 0.7%. The ex-dividend date of this dividend is Thursday, March 12th. This is an increase from Franco-Nevada’s previous quarterly dividend of $0.38. Franco-Nevada’s dividend payout ratio is presently 31.87%.

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.