Edmond DE Rothschild Holding S.A. Makes New $5.50 Million Investment in Franco-Nevada Corporation $FNV

Key Points

• Edmond DE Rothschild Holding S.A. initiated a $5.50 million position in Franco-Nevada during the second quarter by purchasing 26,425 shares. Other hedge funds also opened stakes, and institutional investors now own 77.06% of the company.
• Franco-Nevada reported quarterly EPS of $1.81 and revenue of $580.9 million, missing analyst estimates, though revenue increased 57.3% year over year. The company maintains strong profitability, with an 18.58% return on equity and a 63.79% net margin.
• 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 rating with an average price target of $273.40.

Edmond DE Rothschild Holding S.A. 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 disclosure with the Securities and Exchange Commission (SEC). The firm acquired 26,425 shares of the basic materials company's stock, valued at approximately $5,495,000.

A number of other hedge funds also recently made changes to their positions in the company. Tocqueville Asset Management L.P. acquired a new position in shares of Franco-Nevada during the second quarter worth $8,915,000. West Family Investments Inc. purchased a new position in shares of Franco-Nevada in the second quarter valued at $208,000. Tacita Capital Inc acquired a new stake in Franco-Nevada during the 2nd quarter valued at $1,358,000. Oxbow Advisors LLC acquired a new stake in Franco-Nevada during the 2nd quarter valued at $14,500,000. Finally, K2 Principal Fund L.P. purchased a new stake in Franco-Nevada during the 2nd quarter worth $1,798,000. Hedge funds and other institutional investors own 77.06% of the company's stock.

Franco-Nevada Price Performance

NYSE FNV opened at $251.54 on Thursday. The company has a market capitalization of $48.51 billion, a price-to-earnings ratio of 32.88, a price-to-earnings-growth ratio of 2.13 and a beta of 0.35. Franco-Nevada Corporation has a 12 month low of $173.84 and a 12 month high of $285.67. The company's fifty day moving average price is $217.44 and its two-hundred day moving average price is $234.66.

Franco-Nevada (NYSE:FNV - Get Free Report) TSE: FNV last released 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 company 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%.Franco-Nevada's revenue for the quarter was up 57.3% on a year-over-year basis. During the same period in the previous year, the firm posted $1.24 EPS. As a group, analysts anticipate that Franco-Nevada Corporation will post 7.6 EPS for the current year.

Franco-Nevada Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 24th. Investors of record on Thursday, September 10th will be issued a $0.44 dividend. This represents a $1.76 annualized dividend and a yield of 0.7%. The ex-dividend date of this dividend is Thursday, September 10th. Franco-Nevada's payout ratio is currently 23.01%.

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on the company. Jefferies Financial Group lowered their target price on Franco-Nevada from $258.00 to $245.00 and set a "hold" rating for the company in a research note on Monday, July 6th. Weiss Ratings cut Franco-Nevada from a "buy (b)" rating to a "buy (b-)" rating in a research note on Monday, June 8th. UBS Group reduced their price target on Franco-Nevada from $310.00 to $280.00 and set a "buy" rating for the company in a report on Tuesday, June 30th. Scotiabank lowered their price objective on 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. Finally, National Bank Financial upgraded Franco-Nevada from a "sector perform" rating to an "outperform" rating in a report on Wednesday, May 13th. Eleven equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source