Korea Investment CORP Takes $20.05 Million Position in Franco-Nevada Corporation $FNV

Key Points

• Korea Investment CORP acquired 96,127 Franco-Nevada shares worth approximately $20.05 million in the second quarter. Institutional investors collectively own 77.06% of the company.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $273.40, despite some recent downgrades and target-price cuts.
• Franco-Nevada reported quarterly EPS of $1.81 and revenue of $580.9 million, missing estimates, though revenue increased 57.3% year over year. The company also declared a quarterly dividend of $0.44 per share, representing a 0.7% yield.

Korea Investment CORP acquired a new stake in 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 fund acquired 96,127 shares of the basic materials company's stock, valued at approximately $20,051,000.

A number of other institutional investors have also recently modified their holdings of FNV. Norges Bank bought a new position in Franco-Nevada in the fourth quarter valued at about $578,577,000. Deutsche Bank AG bought a new stake in Franco-Nevada in the second quarter valued at approximately $372,435,000. 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 acquiring an additional 1,074,257 shares during the last quarter. Van ECK Associates Corp grew its stake in shares of Franco-Nevada by 12.8% in the 4th quarter. Van ECK Associates Corp now owns 7,441,133 shares of the basic materials company's stock valued at $1,542,402,000 after buying an additional 842,132 shares during the period. Finally, Capital Research Global Investors raised its position in shares of Franco-Nevada by 100.2% during the fourth quarter. Capital Research Global Investors now owns 1,277,889 shares of the basic materials company's stock worth $264,882,000 after purchasing an additional 639,493 shares during the period. 77.06% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

Several analysts have recently commented on FNV shares. Zacks Research upgraded shares of Franco-Nevada from a "strong sell" rating to a "hold" rating in a report on Tuesday, August 11th. TD upgraded Franco-Nevada from a "hold" rating to a "buy" rating and lowered their price objective for the company from $292.00 to $291.00 in a research note on Wednesday, May 20th. HC Wainwright reaffirmed a "buy" rating and set a $305.00 price objective on shares of Franco-Nevada in a report on Wednesday, May 13th. Jefferies Financial Group cut their target price on shares of Franco-Nevada from $258.00 to $245.00 and set a "hold" rating for the company in a research report on Monday, July 6th. Finally, Wall Street Zen downgraded shares of Franco-Nevada from a "buy" rating to a "hold" rating in a research note on Monday, June 1st. Eleven analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $273.40.

Franco-Nevada Trading Up 0.0%

Franco-Nevada stock opened at $265.78 on Monday. The firm's 50 day simple moving average is $219.57 and its 200 day simple moving average is $235.06. The firm has a market capitalization of $51.26 billion, a PE ratio of 34.74, a price-to-earnings-growth ratio of 2.42 and a beta of 0.35. Franco-Nevada Corporation has a 1-year low of $180.32 and a 1-year high of $285.67.

Franco-Nevada (NYSE:FNV - Get Free Report) TSE: FNV last announced 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). The firm 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 firm's revenue for the quarter was up 57.3% on a year-over-year basis. During the same period in the previous year, the business earned $1.24 earnings per share. Research analysts forecast that Franco-Nevada Corporation will post 7.62 earnings per share for the current 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 dividend of $0.44 per share. The ex-dividend date of this dividend is Thursday, September 10th. This represents a $1.76 annualized dividend and a yield of 0.7%. Franco-Nevada's dividend payout ratio (DPR) 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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