Caisse de depot et placement du Quebec Makes New $40.05 Million Investment in Franco-Nevada Corporation $FNV

Key Points

• Caisse de dépôt et placement du Québec purchased 191,986 Franco-Nevada shares worth approximately $40.05 million, acquiring about a 0.10% stake. Institutional investors collectively own 77.06% of the company.
• Analyst sentiment remains positive overall, with 11 Buy ratings and four Holds, producing a consensus “Moderate Buy” rating and an average price target of $273.40, despite recent target-price cuts.
• Franco-Nevada reported quarterly earnings of $1.81 per share, below the $1.95 consensus estimate, while revenue rose 57.3% year over year to $580.9 million. The company also declared a quarterly dividend of $0.44 per share.

Caisse de depot et placement du Quebec purchased a new position in shares of Franco-Nevada Corporation (NYSE:FNV - Free Report) TSE: FNV in the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 191,986 shares of the basic materials company's stock, valued at approximately $40,045,000. Caisse de depot et placement du Quebec owned approximately 0.10% of Franco-Nevada as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds also recently modified their holdings of the company. Composition Wealth LLC boosted its stake in shares of Franco-Nevada by 0.8% during the fourth quarter. Composition Wealth LLC now owns 6,108 shares of the basic materials company's stock valued at $1,266,000 after purchasing an additional 49 shares in the last quarter. Clark Capital Management Group Inc. raised its holdings in Franco-Nevada by 1.0% in the 4th quarter. Clark Capital Management Group Inc. now owns 5,054 shares of the basic materials company's stock valued at $1,048,000 after buying an additional 50 shares during the last quarter. Syon Capital LLC raised its holdings in Franco-Nevada by 2.1% in the 4th quarter. Syon Capital LLC now owns 2,443 shares of the basic materials company's stock valued at $506,000 after buying an additional 51 shares during the last quarter. PFG Investments LLC boosted its position in Franco-Nevada by 0.7% during the 1st quarter. PFG Investments LLC now owns 7,211 shares of the basic materials company's stock worth $1,782,000 after buying an additional 52 shares during the period. Finally, Guardian Partners Inc. grew its holdings in Franco-Nevada by 3.2% during the 4th quarter. Guardian Partners Inc. now owns 1,692 shares of the basic materials company's stock worth $351,000 after acquiring an additional 52 shares during the last quarter. Institutional investors and hedge funds own 77.06% of the company's stock.

Analyst Upgrades and Downgrades

FNV has been the subject of several analyst reports. Wall Street Zen downgraded shares of Franco-Nevada from a "buy" rating to a "hold" rating in a research note on Monday, June 1st. HC Wainwright restated a "buy" rating and issued a $305.00 price objective on shares of Franco-Nevada in a report on Wednesday, May 13th. Weiss Ratings lowered Franco-Nevada from a "buy (b)" rating to a "buy (b-)" rating in a research report on Monday, June 8th. Jefferies Financial Group cut their target price on Franco-Nevada from $258.00 to $245.00 and set a "hold" rating on the stock in a report on Monday, July 6th. Finally, Bank of America cut their target price on Franco-Nevada from $276.00 to $238.00 and set a "neutral" rating on the stock in a report on Thursday, July 9th. Eleven investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat, Franco-Nevada currently has a consensus rating of "Moderate Buy" and an average target price of $273.40.

Franco-Nevada Stock Up 1.7%

FNV stock opened at $271.94 on Friday. The firm has a market cap of $52.45 billion, a price-to-earnings ratio of 35.55, a PEG ratio of 2.47 and a beta of 0.35. The company's fifty day simple moving average is $223.21 and its 200 day simple moving average is $236.10. Franco-Nevada Corporation has a 12-month low of $181.50 and a 12-month high of $285.67.

Franco-Nevada (NYSE:FNV - Get Free Report) TSE: FNV last posted its quarterly earnings data 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 during the quarter, compared to the consensus estimate of $616.66 million. Franco-Nevada had a return on equity of 18.58% and a net margin of 63.79%.The business's revenue was up 57.3% on a year-over-year basis. During the same period last year, the business posted $1.24 earnings per share. Research analysts expect that Franco-Nevada Corporation will post 7.54 earnings per share for the current year.

Franco-Nevada Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 24th. Stockholders of record on Thursday, September 10th will be paid 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 payout ratio is currently 23.01%.

Franco-Nevada Company Profile

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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