SummitTX Capital L.P. Buys 59,035 Shares of Franco-Nevada Corporation $FNV

Key Points

• SummitTX Capital increased its Franco-Nevada stake by 909.9% in the first quarter, purchasing 59,035 additional shares for a total holding of 65,523 shares valued at approximately $16.2 million.
• Institutional investors own 77.06% of Franco-Nevada, with Vanguard, VanECK, First Eagle, Royal Bank of Canada and Norges Bank among the major holders that increased or initiated positions.
• Franco-Nevada reported strong quarterly results, with EPS of $2.38 beating estimates and revenue rising 76.6% year over year to $650.7 million. Analysts maintain a “Moderate Buy” consensus, with an average price target of $273.40 versus the reported share price of $215.06.

SummitTX Capital L.P. lifted its stake in shares of Franco-Nevada Corporation (NYSE:FNV - Free Report) TSE: FNV by 909.9% in the first quarter, according to the company in its most recent filing with the SEC. The fund owned 65,523 shares of the basic materials company's stock after buying an additional 59,035 shares during the quarter. Franco-Nevada comprises about 0.5% of SummitTX Capital L.P.'s portfolio, making the stock its 26th largest holding. SummitTX Capital L.P.'s holdings in Franco-Nevada were worth $16,187,000 as of its most recent filing with the SEC.

Several other hedge funds and other institutional investors have also modified their holdings of FNV. Vanguard Group Inc. raised its holdings in Franco-Nevada by 1.4% in the 4th quarter. Vanguard Group Inc. now owns 8,330,234 shares of the basic materials company's stock valued at $1,726,741,000 after acquiring an additional 113,916 shares during the period. Van ECK Associates Corp boosted its holdings in shares of Franco-Nevada by 12.8% during 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 period. First Eagle Investment Management LLC grew its position in shares of Franco-Nevada by 26.5% in 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. Royal Bank of Canada grew its position in shares of 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 during the last quarter. Finally, Norges Bank bought a new position in shares of Franco-Nevada during the fourth quarter worth approximately $578,577,000. Institutional investors own 77.06% of the company's stock.

Franco-Nevada Trading Up 0.2%

Shares of FNV opened at $215.06 on Monday. Franco-Nevada Corporation has a 12 month low of $157.18 and a 12 month high of $285.67. The firm's 50 day moving average is $216.08 and its 200-day moving average is $236.66. The stock has a market capitalization of $41.48 billion, a PE ratio of 30.29, a P/E/G ratio of 1.81 and a beta of 0.36.

Franco-Nevada (NYSE:FNV - Get Free Report) TSE: FNV last issued its quarterly earnings results on Tuesday, May 12th. The basic materials company reported $2.38 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.09 by $0.29. The business had revenue of $650.70 million during the quarter, compared to analysts' expectations of $634.43 million. Franco-Nevada had a return on equity of 18.10% and a net margin of 65.12%.The firm's revenue for the quarter was up 76.6% compared to the same quarter last year. During the same period in the previous year, the company posted $1.07 earnings per share. Equities research analysts predict that Franco-Nevada Corporation will post 8.23 earnings per share for the current fiscal year.

Franco-Nevada Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, June 25th. Stockholders of record on Thursday, June 11th were given a dividend of $0.44 per share. This represents a $1.76 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date was Thursday, June 11th. Franco-Nevada's dividend payout ratio is presently 24.79%.

Analyst Upgrades and Downgrades

Several research firms recently weighed in on FNV. Canaccord Genuity Group raised Franco-Nevada from a "hold" rating to a "buy" rating in a report on Wednesday, April 29th. Scotiabank decreased their price objective on Franco-Nevada from $290.00 to $274.00 and set a "sector perform" rating on the stock in a report on Tuesday, July 14th. Weiss Ratings cut Franco-Nevada from a "buy (b)" rating to a "buy (b-)" rating in a research report on Monday, June 8th. UBS Group dropped their target price on Franco-Nevada from $310.00 to $280.00 and set a "buy" rating for the company in a report on Tuesday, June 30th. Finally, TD Cowen raised Franco-Nevada from a "hold" rating to a "buy" rating and dropped their target price for the stock from $292.00 to $291.00 in a report on Wednesday, May 20th. Eleven equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $273.40.

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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