Franco-Nevada (NYSE:FNV) Rating Increased to Hold at Zacks Research

Zacks Research upgraded shares of Franco-Nevada (NYSE:FNV) (TSE:FNV) from a strong sell rating to a hold rating in a report issued on Tuesday morning,Zacks.com reports.

Several other research analysts have also commented on FNV. Bank of America decreased their price target on shares of Franco-Nevada from $276.00 to $238.00 and set a “neutral” rating for the company in a report on Thursday, July 9th. TD Securities raised Franco-Nevada from a “hold” rating to a “buy” rating and set a $291.00 target price for the company in a report on Wednesday, May 20th. Weiss Ratings cut Franco-Nevada from a “buy (b)” rating to a “buy (b-)” rating in a research report on Monday, June 8th. Scotiabank reduced their price objective on Franco-Nevada from $290.00 to $274.00 and set a “sector perform” rating for the company in a research report on Tuesday, July 14th. Finally, Royal Bank Of Canada lowered their price objective on Franco-Nevada from $295.00 to $285.00 and set an “outperform” rating for the company in a research note on Thursday, July 9th. Eleven equities research 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 a consensus target price of $273.40.

Franco-Nevada Price Performance

Shares of FNV opened at $236.36 on Tuesday. The stock has a market capitalization of $45.59 billion, a PE ratio of 30.90, a price-to-earnings-growth ratio of 2.03 and a beta of 0.35. The business’s fifty day moving average price is $215.46 and its 200 day moving average price is $235.49. Franco-Nevada has a 12-month low of $173.39 and a 12-month high of $285.67.

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 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 the consensus estimate of $616.66 million. Franco-Nevada had a net margin of 63.79% and a return on equity of 18.98%. The firm’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 earned $1.24 EPS. As a group, research analysts anticipate that Franco-Nevada will post 8.23 earnings per share for the current fiscal year.

Franco-Nevada Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 24th. Stockholders of record on Thursday, September 10th will be issued a dividend of $0.44 per share. This represents a $1.76 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date of this dividend is Thursday, September 10th. Franco-Nevada’s payout ratio is 23.01%.

Hedge Funds Weigh In On Franco-Nevada

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Solstein Capital LLC bought a new stake in shares of Franco-Nevada during the 2nd quarter worth about $47,000. Connor Clark & Lunn Investment Management Ltd. bought a new position in shares of Franco-Nevada in the second quarter valued at approximately $131,839,000. Twin Tree Management LP acquired a new position in shares of Franco-Nevada during the second quarter valued at approximately $980,000. True Freedom Investing LLC bought a new stake in Franco-Nevada during the second quarter worth approximately $282,000. Finally, Clear Harbor Asset Management LLC acquired a new stake in Franco-Nevada in the second quarter worth approximately $2,353,000. 77.06% of the stock is owned by institutional investors.

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.