Carmignac Gestion Makes New $17.45 Million Investment in Franco-Nevada Corporation $FNV

Key Points

• Carmignac Gestion acquired 83,723 Franco-Nevada shares worth approximately $17.45 million in the second quarter, while institutional investors collectively own 77.06% of the company.
• Franco-Nevada reported quarterly EPS of $1.81, missing estimates of $1.95, and revenue of $580.9 million versus expectations of $616.66 million. Revenue nevertheless increased 57.3% year over year.
• The company declared a quarterly dividend of $0.44 per share, equivalent to $1.76 annually and a 0.7% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $273.40.

Carmignac Gestion bought a new stake in shares of Franco-Nevada Corporation (NYSE:FNV - Free Report) TSE: FNV in the second quarter, according to the company in its most recent Form 13F filing with the SEC. The firm bought 83,723 shares of the basic materials company's stock, valued at approximately $17,451,000.

Several other institutional investors and hedge funds have also modified their holdings of FNV. Van ECK Associates Corp increased its stake in shares of Franco-Nevada by 12.8% in the fourth quarter. Van ECK Associates Corp now owns 7,441,133 shares of the basic materials company's stock worth $1,542,402,000 after acquiring an additional 842,132 shares during the last quarter. First Eagle Investment Management LLC boosted its position in Franco-Nevada by 26.5% during the fourth quarter. First Eagle Investment Management LLC now owns 5,123,444 shares of the basic materials company's stock valued at $1,062,037,000 after purchasing an additional 1,074,257 shares during the last quarter. EdgePoint Investment Group Inc. grew its stake in Franco-Nevada by 3.3% in the first quarter. EdgePoint Investment Group Inc. now owns 3,461,224 shares of the basic materials company's stock valued at $857,196,000 after purchasing an additional 110,222 shares in the last quarter. Royal Bank of Canada grew its stake in Franco-Nevada by 10.2% in the fourth quarter. Royal Bank of Canada now owns 2,808,645 shares of the basic materials company's stock valued at $582,177,000 after purchasing an additional 260,793 shares in the last quarter. Finally, Norges Bank acquired a new position in Franco-Nevada in the 4th quarter worth about $578,577,000. 77.06% of the stock is currently owned by hedge funds and other institutional investors.

Franco-Nevada Price Performance

Shares of NYSE FNV traded down $2.33 during trading hours on Tuesday, hitting $263.85. 352,700 shares of the company's stock were exchanged, compared to its average volume of 850,539. The company's 50-day moving average price is $230.25 and its 200-day moving average price is $236.76. Franco-Nevada Corporation has a 1-year low of $181.50 and a 1-year high of $285.67. The stock has a market capitalization of $50.89 billion, a price-to-earnings ratio of 34.49, a PEG ratio of 2.46 and a beta of 0.39.

Franco-Nevada (NYSE:FNV - Get Free Report) TSE: FNV last issued 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). 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 during the quarter, compared to the consensus estimate of $616.66 million. During the same period in the prior year, the firm earned $1.24 earnings per share. The business's quarterly revenue was up 57.3% on a year-over-year basis. On average, 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 announced a quarterly dividend, which will be paid on Thursday, September 24th. Investors of record on Thursday, September 10th will be given a dividend of $0.44 per share. The ex-dividend date of this dividend is Thursday, September 10th. This represents a $1.76 dividend on an annualized basis and a yield of 0.7%. Franco-Nevada's payout ratio is 23.01%.

Analysts Set New Price Targets

Several equities research analysts have recently issued reports on the company. TD Cowen upgraded Franco-Nevada from a "hold" rating to a "buy" rating and reduced their price target for the company from $292.00 to $291.00 in a report on Wednesday, May 20th. Royal Bank Of Canada reduced their price objective on shares of Franco-Nevada from $295.00 to $285.00 and set an "outperform" rating for the company in a research note on Thursday, July 9th. TD upgraded Franco-Nevada from a "hold" rating to a "buy" rating and cut their target price for the company from $292.00 to $291.00 in a report on Wednesday, May 20th. Weiss Ratings reaffirmed a "buy (b-)" rating on shares of Franco-Nevada in a research report on Friday. Finally, UBS Group cut their price objective on Franco-Nevada from $310.00 to $280.00 and set a "buy" rating on the stock in a research note on Tuesday, June 30th. Eleven analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat, the stock presently has an average 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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