Franco-Nevada Corporation (NYSE:FNV) Given Average Rating of "Moderate Buy" by Analysts

Key Points

• Analysts maintain a “Moderate Buy” consensus on Franco-Nevada, with 11 buy ratings and 4 holds. The average 12-month price target is $273.40, versus a reported share price of $266.35.
• Institutional investors own 77.06% of the company, with several firms increasing their positions and Anchor Capital Advisors initiating a stake worth approximately $32 million.
• Franco-Nevada reported quarterly revenue growth of 57.3% year over year, though earnings and revenue fell short of analyst estimates. The company also declared a quarterly dividend of $0.44 per share, equal to a 0.7% annualized yield.

Franco-Nevada Corporation (NYSE:FNV - Get Free Report) TSE: FNV has earned a consensus recommendation of "Moderate Buy" from the fifteen research firms that are currently covering the stock, MarketBeat reports. Four analysts have rated the stock with a hold recommendation and eleven have assigned a buy recommendation to the company. The average 12-month price target among brokers that have issued ratings on the stock in the last year is $273.40.

Several brokerages have recently weighed in on FNV. Jefferies Financial Group lowered their price target on shares of Franco-Nevada from $258.00 to $245.00 and set a "hold" rating for the company in a research report on Monday, July 6th. Scotiabank reduced their price objective on shares of Franco-Nevada from $290.00 to $274.00 and set a "sector perform" rating for the company in a research note on Tuesday, July 14th. UBS Group lowered their target price on Franco-Nevada from $310.00 to $280.00 and set a "buy" rating for the company in a report on Tuesday, June 30th. HC Wainwright restated a "buy" rating and set a $305.00 target price on shares of Franco-Nevada in a report on Wednesday, May 13th. Finally, TD raised Franco-Nevada from a "hold" rating to a "buy" rating and dropped their target price for the company from $292.00 to $291.00 in a research report on Wednesday, May 20th.

Institutional Investors Weigh In On Franco-Nevada

A number of institutional investors have recently added to or reduced their stakes in the stock. Anchor Capital Advisors LLC bought a new position in Franco-Nevada in the second quarter worth about $31,995,000. Allianz Asset Management GmbH boosted its holdings in shares of Franco-Nevada by 1.1% in the 2nd quarter. Allianz Asset Management GmbH now owns 256,067 shares of the basic materials company's stock valued at $53,412,000 after buying an additional 2,836 shares in the last quarter. Corient Private Wealth LP grew its position in shares of Franco-Nevada by 245.5% in the 2nd quarter. Corient Private Wealth LP now owns 29,133 shares of the basic materials company's stock worth $6,072,000 after buying an additional 20,701 shares during the last quarter. Groupe la Francaise grew its position in shares of Franco-Nevada by 9.7% in the 2nd quarter. Groupe la Francaise now owns 170,000 shares of the basic materials company's stock worth $35,487,000 after buying an additional 15,000 shares during the last quarter. Finally, HB Wealth Management LLC raised its stake in shares of Franco-Nevada by 23.5% during the 2nd quarter. HB Wealth Management LLC now owns 2,856 shares of the basic materials company's stock worth $595,000 after acquiring an additional 543 shares in the last quarter. Institutional investors own 77.06% of the company's stock.

Franco-Nevada Price Performance

FNV stock opened at $266.35 on Tuesday. Franco-Nevada has a 1-year low of $181.50 and a 1-year high of $285.67. The business has a 50-day moving average price of $230.25 and a 200 day moving average price of $236.76. The company has a market capitalization of $51.37 billion, a P/E ratio of 34.82, a PEG ratio of 2.46 and a beta of 0.39.

Franco-Nevada (NYSE:FNV - Get Free Report) TSE: FNV last issued 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). Franco-Nevada had a return on equity of 18.58% and a net margin of 63.79%.The business had revenue of $580.90 million for the quarter, compared to the consensus estimate of $616.66 million. During the same quarter in the previous year, the company earned $1.24 earnings per share. The firm's revenue was up 57.3% on a year-over-year basis. On average, analysts anticipate that Franco-Nevada will post 7.54 earnings per share for the current fiscal year.

Franco-Nevada Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 24th. Investors of record on Thursday, September 10th will be paid 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 is Thursday, September 10th. Franco-Nevada's dividend payout ratio is 23.01%.

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.

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