Franco-Nevada Corporation (NYSE:FNV) Receives Consensus Rating of "Moderate Buy" from Brokerages

Key Points

• Franco-Nevada has a “Moderate Buy” consensus rating from 15 analysts, with 11 buys and four holds. The average 12-month price target is $274.90.
• The company’s latest quarterly results missed expectations, reporting $1.81 in EPS versus $1.95 expected and revenue of $580.9 million versus $616.66 million expected, although revenue increased 57.3% year over year.
• Franco-Nevada paid a quarterly dividend of $0.44 per share, equivalent to an annualized $1.76 payout and a 0.7% yield; institutional investors own approximately 77.1% of the company.

Shares of Franco-Nevada Corporation (NYSE:FNV - Get Free Report) TSE: FNV have been assigned a consensus rating of "Moderate Buy" from the fifteen ratings firms that are covering the firm, MarketBeat Ratings reports. Four research analysts have rated the stock with a hold recommendation and eleven have assigned a buy recommendation to the company. The average 1 year price objective among brokers that have issued a report on the stock in the last year is $274.90.

FNV has been the topic of several research analyst reports. 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. Royal Bank Of Canada raised their price target on shares of Franco-Nevada from $285.00 to $300.00 and gave the stock an "outperform" rating in a report on Wednesday, September 16th. Jefferies Financial Group lowered their price objective on shares of Franco-Nevada from $258.00 to $245.00 and set a "hold" rating for the company in a research note on Monday, July 6th. Scotiabank dropped their price objective on shares of Franco-Nevada from $290.00 to $274.00 and set a "sector perform" rating on the stock in a report on Tuesday, July 14th. Finally, Zacks Research raised shares of Franco-Nevada from a "strong sell" rating to a "hold" rating in a report on Tuesday, August 11th.

Franco-Nevada Price Performance

Shares of NYSE:FNV opened at $239.07 on Friday. Franco-Nevada has a 1 year low of $181.50 and a 1 year high of $285.67. The firm has a market capitalization of $46.11 billion, a PE ratio of 31.25, a price-to-earnings-growth ratio of 2.17 and a beta of 0.36. The business has a 50 day simple moving average of $249.07 and a two-hundred day simple moving average of $235.90.

Franco-Nevada (NYSE:FNV - Get Free Report) TSE: FNV last announced its quarterly earnings results on Tuesday, August 11th. The basic materials company reported $1.81 EPS for the quarter, missing the consensus estimate of $1.95 by ($0.14). The firm had revenue of $580.90 million for the quarter, compared to analysts' expectations of $616.66 million. Franco-Nevada had a net margin of 63.79% and a return on equity of 18.58%. The business's quarterly revenue was up 57.3% on a year-over-year basis. During the same quarter in the prior year, the business posted $1.24 EPS. Equities research analysts expect that Franco-Nevada will post 7.54 EPS for the current fiscal year.

Franco-Nevada Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Thursday, September 24th. Shareholders of record on Thursday, September 10th were paid a dividend of $0.44 per share. The ex-dividend date was Thursday, September 10th. This represents a $1.76 dividend on an annualized basis and a dividend yield of 0.7%. Franco-Nevada's dividend payout ratio (DPR) is presently 23.01%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in FNV. Versant Capital Management Inc raised its stake in shares of Franco-Nevada by 12.9% during the 3rd quarter. Versant Capital Management Inc now owns 779 shares of the basic materials company's stock worth $185,000 after buying an additional 89 shares in the last quarter. Confluence Investment Management LLC boosted its stake in shares of Franco-Nevada by 39.3% in the third quarter. Confluence Investment Management LLC now owns 8,592 shares of the basic materials company's stock valued at $2,046,000 after buying an additional 2,425 shares in the last quarter. Envestnet Asset Management Inc. grew its stake in shares of Franco-Nevada by 3.2% during the 2nd quarter. Envestnet Asset Management Inc. now owns 118,709 shares of the basic materials company's stock worth $24,744,000 after purchasing an additional 3,636 shares during the period. Silicon Valley Capital Partners acquired a new position in Franco-Nevada during the second quarter worth about $31,000. Finally, Sequoia Financial Advisors LLC lifted its position in shares of Franco-Nevada by 16.0% during the 2nd quarter. Sequoia Financial Advisors LLC now owns 6,557 shares of the basic materials company's stock valued at $1,367,000 after acquiring an additional 904 shares during the period. Hedge funds and other institutional investors own 77.06% of the company's stock.

About Franco-Nevada

Franco-Nevada Corporation NYSE: FNV is a gold-focused royalty and streaming company. Rather than operating mines directly, it provides capital to mining and natural resource companies in exchange for the right to receive a portion of future production or revenue. This business model gives Franco-Nevada exposure to commodity production while generally limiting its direct responsibility for operating and capital costs.

The company holds a diversified portfolio of royalties, streams and other interests tied primarily to gold, as well as silver, platinum-group metals, iron ore and other minerals.

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