Louisbourg Investments Inc. Makes New Investment in Franco-Nevada Corporation $FNV

Louisbourg Investments Inc. purchased a new position in shares of Franco-Nevada Corporation (NYSE:FNV) (TSE:FNV) during the 1st quarter, Holdings Channel reports. The institutional investor purchased 29,832 shares of the basic materials company’s stock, valued at approximately $7,372,000. Franco-Nevada comprises about 1.3% of Louisbourg Investments Inc.’s portfolio, making the stock its 20th biggest position.

Other hedge funds have also recently modified their holdings of the company. AQR Capital Management LLC bought a new position in Franco-Nevada in the 1st quarter worth $241,000. NewEdge Advisors LLC grew its holdings in Franco-Nevada by 16.7% during the first quarter. NewEdge Advisors LLC now owns 6,585 shares of the basic materials company’s stock valued at $1,038,000 after purchasing an additional 943 shares during the period. Intech Investment Management LLC grew its holdings in 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 valued at $1,460,000 after purchasing an additional 5,032 shares during the period. Acadian Asset Management LLC increased its position in Franco-Nevada by 800.0% in the first quarter. Acadian Asset Management LLC now owns 2,700 shares of the basic materials company’s stock worth $424,000 after buying an additional 2,400 shares in the last quarter. Finally, Marshall Wace LLP purchased a new stake in Franco-Nevada in the second quarter worth about $1,477,000. Institutional investors own 77.06% of the company’s stock.

Analyst Upgrades and Downgrades

A number of research firms have recently weighed in on FNV. Canaccord Genuity Group raised Franco-Nevada from a “hold” rating to a “buy” rating in a research report on Wednesday, April 29th. National Bank Financial raised shares of Franco-Nevada from a “sector perform” rating to an “outperform” rating in a report on Wednesday, May 13th. Zacks Research cut shares of Franco-Nevada from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, March 31st. TD Securities upgraded shares of Franco-Nevada from a “hold” rating to a “buy” rating and set a $291.00 target price on the stock in a research note on Wednesday, May 20th. Finally, TD raised shares of Franco-Nevada from a “hold” rating to a “buy” rating and lowered their price target for the company from $292.00 to $291.00 in a report on Wednesday, May 20th. Eleven equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $271.00.

Franco-Nevada Price Performance

FNV stock opened at $215.20 on Friday. Franco-Nevada Corporation has a 1-year low of $152.89 and a 1-year high of $285.67. The business has a 50 day simple moving average of $228.80 and a two-hundred day simple moving average of $236.87. The company has a market capitalization of $41.50 billion, a price-to-earnings ratio of 30.31, a PEG ratio of 1.87 and a beta of 0.34.

Franco-Nevada (NYSE:FNV) (TSE:FNV) last released its quarterly earnings data on Tuesday, May 12th. The basic materials company reported $2.38 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.09 by $0.29. Franco-Nevada had a net margin of 65.12% and a return on equity of 18.10%. The firm had revenue of $650.70 million for the quarter, compared to analysts’ expectations of $634.43 million. During the same quarter last year, the business posted $1.07 earnings per share. The company’s revenue for the quarter was up 76.6% compared to the same quarter last year. Sell-side analysts anticipate that Franco-Nevada Corporation will post 8.85 EPS for the current fiscal year.

Franco-Nevada Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, June 25th. Shareholders of record on Thursday, June 11th were issued a $0.44 dividend. This represents a $1.76 dividend on an annualized basis and a yield of 0.8%. The ex-dividend date was Thursday, June 11th. Franco-Nevada’s payout ratio is currently 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.