K2 Principal Fund L.P. Invests $1.80 Million in Franco-Nevada Corporation $FNV

Key Points

• K2 Principal Fund purchased 8,625 Franco-Nevada shares worth approximately $1.80 million during the second quarter. Institutional investors and hedge funds collectively own 77.06% of the company.
• Analysts maintain a generally positive outlook, with a consensus rating of “Moderate Buy” and an average price target of $273.40, despite several recent target-price reductions.
• Franco-Nevada reported quarterly EPS of $1.81, below the $1.95 consensus estimate, while revenue rose 57.3% year over year to $580.9 million. The company also announced a quarterly dividend of $0.44 per share, representing a 0.8% yield.

K2 Principal Fund L.P. purchased a new position in shares of Franco-Nevada Corporation (NYSE:FNV - Free Report) TSE: FNV during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor purchased 8,625 shares of the basic materials company's stock, valued at approximately $1,798,000.

A number of other large investors have also recently added to or reduced their stakes in the company. Transamerica Financial Advisors LLC acquired a new position in shares of Franco-Nevada during the 4th quarter worth approximately $25,000. Private Trust Co. NA bought a new stake in Franco-Nevada in the 4th quarter valued at $29,000. Smartleaf Asset Management LLC lifted its holdings in Franco-Nevada by 600.0% during the 2nd quarter. Smartleaf Asset Management LLC now owns 196 shares of the basic materials company's stock valued at $32,000 after purchasing an additional 168 shares during the last quarter. Navalign LLC acquired a new stake in Franco-Nevada during the 4th quarter valued at $34,000. Finally, Global Retirement Partners LLC bought a new position in Franco-Nevada during the second quarter worth $35,000. Institutional investors and hedge funds own 77.06% of the company's stock.

Wall Street Analyst Weigh In

Several research analysts have weighed in on the stock. Zacks Research raised shares of Franco-Nevada from a "strong sell" rating to a "hold" rating in a report on Tuesday, August 11th. UBS Group reduced their price objective on Franco-Nevada from $310.00 to $280.00 and set a "buy" rating for the company in a report on Tuesday, June 30th. Wall Street Zen downgraded Franco-Nevada from a "buy" rating to a "hold" rating in a research report on Monday, June 1st. Royal Bank Of Canada lowered their target price on Franco-Nevada from $295.00 to $285.00 and set an "outperform" rating on the stock in a research note on Thursday, July 9th. Finally, Bank of America dropped their price target on Franco-Nevada from $276.00 to $238.00 and set a "neutral" rating for the company in a report on Thursday, July 9th. Eleven investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $273.40.

Franco-Nevada Price Performance

Shares of FNV opened at $232.88 on Wednesday. The firm has a 50 day simple moving average of $216.58 and a two-hundred day simple moving average of $234.73. Franco-Nevada Corporation has a one year low of $173.39 and a one year high of $285.67. The company has a market cap of $44.92 billion, a P/E ratio of 30.44, a P/E/G ratio of 2.14 and a beta of 0.35.

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 (EPS) for the quarter, missing analysts' consensus estimates 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 net margin of 63.79% and a return on equity of 18.58%. The business's revenue was up 57.3% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.24 EPS. On average, analysts expect that Franco-Nevada Corporation will post 7.6 earnings per share for the current fiscal year.

Franco-Nevada Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 24th. Investors of record on Thursday, September 10th will be paid a $0.44 dividend. The ex-dividend date of this dividend is Thursday, September 10th. This represents a $1.76 annualized dividend and a dividend yield of 0.8%. Franco-Nevada's payout ratio is currently 23.01%.

Franco-Nevada 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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