Palisade Capital Management LP Makes New $17.55 Million Investment in Franco-Nevada Corporation $FNV

Key Points

• Palisade Capital Management initiated an approximately $17.55 million position in Franco-Nevada, purchasing 84,187 shares. Institutional investors 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, though several firms recently lowered their targets.
• 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 declared a quarterly dividend of $0.44 per share, representing a 0.6% yield.

Palisade Capital Management LP bought a new position in shares of Franco-Nevada Corporation (NYSE:FNV - Free Report) TSE: FNV during the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund bought 84,187 shares of the basic materials company's stock, valued at approximately $17,548,000. Franco-Nevada makes up about 0.8% of Palisade Capital Management LP's investment portfolio, making the stock its 28th largest holding.

Several other institutional investors and hedge funds have also made changes to their positions in the company. AQR Capital Management LLC purchased a new stake in Franco-Nevada in the first quarter valued at approximately $241,000. NewEdge Advisors LLC grew its position in shares of Franco-Nevada by 16.7% during the first quarter. NewEdge Advisors LLC now owns 6,585 shares of the basic materials company's stock worth $1,038,000 after acquiring an additional 943 shares during the last quarter. Intech Investment Management LLC increased its holdings in shares of Franco-Nevada by 118.3% in the 1st quarter. Intech Investment Management LLC now owns 9,286 shares of the basic materials company's stock valued at $1,460,000 after acquiring an additional 5,032 shares during the period. Acadian Asset Management LLC increased its holdings in shares of Franco-Nevada by 800.0% in the 1st quarter. Acadian Asset Management LLC now owns 2,700 shares of the basic materials company's stock valued at $424,000 after acquiring an additional 2,400 shares during the period. Finally, Marshall Wace LLP purchased a new stake in Franco-Nevada in the 2nd quarter valued at $1,477,000. 77.06% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

FNV has been the topic of several research reports. Scotiabank lowered their price objective on shares of Franco-Nevada from $290.00 to $274.00 and set a "sector perform" rating on the stock in a research report on Tuesday, July 14th. HC Wainwright reiterated a "buy" rating and set a $305.00 target price on shares of Franco-Nevada in a research note on Wednesday, May 13th. Wall Street Zen lowered Franco-Nevada from a "buy" rating to a "hold" rating in a report on Monday, June 1st. Royal Bank Of Canada dropped their price target on Franco-Nevada from $295.00 to $285.00 and set an "outperform" rating on the stock in a research report on Thursday, July 9th. Finally, National Bank Financial raised Franco-Nevada from a "sector perform" rating to an "outperform" rating in a research note on Wednesday, May 13th. Eleven analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $273.40.

Franco-Nevada Stock Performance

Shares of FNV opened at $271.84 on Wednesday. The stock has a market capitalization of $52.43 billion, a P/E ratio of 35.53, a P/E/G ratio of 2.49 and a beta of 0.35. Franco-Nevada Corporation has a 1 year low of $181.50 and a 1 year high of $285.67. The company's fifty day moving average is $221.36 and its two-hundred day moving average is $235.52.

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 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 firm had revenue of $580.90 million during the quarter, compared to analyst estimates of $616.66 million. During the same quarter last year, the business posted $1.24 EPS. The firm's revenue was up 57.3% on a year-over-year basis. Sell-side analysts predict that Franco-Nevada Corporation will post 7.54 EPS for the current year.

Franco-Nevada Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 24th. Shareholders of record on Thursday, September 10th will be issued a $0.44 dividend. This represents a $1.76 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date of this dividend is Thursday, September 10th. 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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