Bank of New York Mellon Corp Invests $42.35 Million in Franco-Nevada Corporation $FNV

Key Points

• Bank of New York Mellon acquired 203,180 Franco-Nevada shares worth approximately $42.35 million, representing a 0.11% stake. Institutional investors collectively own 77.06% of the company.
• Franco-Nevada’s latest quarterly results missed expectations, with EPS of $1.81 versus $1.95 expected and revenue of $580.9 million versus $616.66 million forecast, although revenue rose 57.3% year over year.
• The company declared a quarterly dividend of $0.44, or $1.76 annualized, yielding 0.6%. Analysts maintain a “Moderate Buy” consensus with an average price target of $273.40.

Bank of New York Mellon Corp acquired a new stake in Franco-Nevada Corporation (NYSE:FNV - Free Report) TSE: FNV in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm acquired 203,180 shares of the basic materials company's stock, valued at approximately $42,351,000. Bank of New York Mellon Corp owned 0.11% of Franco-Nevada as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds and other institutional investors have also made changes to their positions in the company. Transamerica Financial Advisors LLC purchased a new position in Franco-Nevada in the 4th quarter valued at approximately $25,000. Ascentis Independent Advisors acquired a new stake in shares of Franco-Nevada in the first quarter valued at $39,000. Navalign LLC acquired a new stake in shares of Franco-Nevada in the fourth quarter valued at $34,000. Quattro Advisors LLC purchased a new position in Franco-Nevada in the fourth quarter valued at $36,000. Finally, GAMMA Investing LLC boosted its holdings in Franco-Nevada by 62.2% in the second quarter. GAMMA Investing LLC now owns 193 shares of the basic materials company's stock valued at $40,000 after purchasing an additional 74 shares during the period. Hedge funds and other institutional investors own 77.06% of the company's stock.

Franco-Nevada Stock Performance

FNV opened at $271.94 on Friday. Franco-Nevada Corporation has a one year low of $181.50 and a one year high of $285.67. The company has a market cap of $52.45 billion, a P/E ratio of 35.55, a PEG ratio of 2.47 and a beta of 0.35. The business's 50-day simple moving average is $223.21 and its 200-day simple moving average is $236.10.

Franco-Nevada (NYSE:FNV - Get Free Report) TSE: FNV last posted 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 analysts' expectations of $616.66 million. Franco-Nevada had a return on equity of 18.58% and a net margin of 63.79%.Franco-Nevada's revenue for the quarter was up 57.3% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.24 EPS. As a group, analysts predict that Franco-Nevada Corporation will post 7.54 earnings per share for the current fiscal year.

Franco-Nevada Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 24th. Stockholders of record on Thursday, September 10th will be issued a $0.44 dividend. The ex-dividend date is Thursday, September 10th. This represents a $1.76 annualized dividend and a dividend yield of 0.6%. Franco-Nevada's dividend payout ratio is presently 23.01%.

Wall Street Analysts Forecast Growth

Several equities research analysts have weighed in on the company. UBS Group cut their price target on Franco-Nevada from $310.00 to $280.00 and set a "buy" rating on the stock in a report on Tuesday, June 30th. Wall Street Zen cut Franco-Nevada from a "buy" rating to a "hold" rating in a research note on Monday, June 1st. Bank of America lowered their price objective on Franco-Nevada from $276.00 to $238.00 and set a "neutral" rating for the company in a research report on Thursday, July 9th. TD upgraded shares of Franco-Nevada from a "hold" rating to a "buy" rating and cut their target price for the stock from $292.00 to $291.00 in a research note on Wednesday, May 20th. Finally, TD Cowen upgraded shares of Franco-Nevada from a "hold" rating to a "buy" rating and cut their target price for the stock from $292.00 to $291.00 in a research note on Wednesday, May 20th. Eleven equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $273.40.

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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