TD Waterhouse Canada Inc. Raises Holdings in Franco-Nevada Corporation $FNV

Key Points

• TD Waterhouse Canada increased its Franco-Nevada stake by 5.1% in the second quarter, adding 39,935 shares to own 817,307 shares valued at approximately $172.1 million. Institutional investors collectively hold 77.06% of FNV.
• Franco-Nevada’s second-quarter revenue surged 57.3% year over year to $580.9 million, but EPS of $1.81 missed analysts’ $1.95 consensus and revenue fell short of expectations. The stock opened at $231.82, below its 52-week high of $285.67.
• The company declared a quarterly dividend of $0.44 per share, equivalent to $1.76 annually and a yield of about 0.8%. Analysts remain broadly positive, with a “Moderate Buy” consensus rating and an average price target of $273.40.

TD Waterhouse Canada Inc. boosted its position in Franco-Nevada Corporation (NYSE:FNV - Free Report) TSE: FNV by 5.1% in the 2nd quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 817,307 shares of the basic materials company's stock after purchasing an additional 39,935 shares during the quarter. TD Waterhouse Canada Inc. owned about 0.42% of Franco-Nevada worth $172,066,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in FNV. PFG Investments LLC raised its position in shares of Franco-Nevada by 0.6% in the fourth quarter. PFG Investments LLC now owns 7,159 shares of the basic materials company's stock valued at $1,484,000 after buying an additional 46 shares during the last quarter. Composition Wealth LLC boosted its position in Franco-Nevada by 0.8% during the fourth quarter. Composition Wealth LLC now owns 6,108 shares of the basic materials company's stock worth $1,266,000 after acquiring an additional 49 shares during the last quarter. Clark Capital Management Group Inc. boosted its position in Franco-Nevada by 1.0% during the fourth quarter. Clark Capital Management Group Inc. now owns 5,054 shares of the basic materials company's stock worth $1,048,000 after acquiring an additional 50 shares during the last quarter. Syon Capital LLC grew its stake in Franco-Nevada by 2.1% during the 4th quarter. Syon Capital LLC now owns 2,443 shares of the basic materials company's stock valued at $506,000 after acquiring an additional 51 shares in the last quarter. Finally, Guardian Partners Inc. grew its stake in Franco-Nevada by 3.2% during the 4th quarter. Guardian Partners Inc. now owns 1,692 shares of the basic materials company's stock valued at $351,000 after acquiring an additional 52 shares in the last quarter. Hedge funds and other institutional investors own 77.06% of the company's stock.

Franco-Nevada Stock Down 1.7%

FNV opened at $231.82 on Friday. Franco-Nevada Corporation has a 52 week low of $173.39 and a 52 week high of $285.67. The business has a fifty day simple moving average of $215.37 and a 200-day simple moving average of $235.32. The firm has a market cap of $44.71 billion, a P/E ratio of 30.30, a P/E/G ratio of 1.99 and a beta of 0.35.

Franco-Nevada (NYSE:FNV - Get Free Report) TSE: FNV last posted its quarterly earnings data on Tuesday, August 11th. The basic materials company reported $1.81 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.95 by ($0.14). Franco-Nevada had a net margin of 63.79% and a return on equity of 18.98%. The firm had revenue of $580.90 million during the quarter, compared to analysts' expectations of $616.66 million. During the same quarter in the prior year, the firm posted $1.24 EPS. Franco-Nevada's quarterly revenue was up 57.3% compared to the same quarter last year. Sell-side analysts expect that Franco-Nevada Corporation will post 8.23 earnings per share for the current year.

Franco-Nevada Dividend Announcement

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

Analyst Ratings Changes

A number of research firms have weighed in on FNV. Canaccord Genuity Group raised shares of Franco-Nevada from a "hold" rating to a "buy" rating in a research note on Wednesday, April 29th. HC Wainwright restated a "buy" rating and issued a $305.00 price target on shares of Franco-Nevada in a research report on Wednesday, May 13th. TD raised Franco-Nevada from a "hold" rating to a "buy" rating and cut their price target for the company from $292.00 to $291.00 in a report on Wednesday, May 20th. Royal Bank Of Canada reduced their price objective 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, TD Securities raised Franco-Nevada from a "hold" rating to a "buy" rating and set a $291.00 price objective on the stock in a research note on Wednesday, May 20th. Eleven research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $273.40.

Key Stories Impacting Franco-Nevada

Here are the key news stories impacting Franco-Nevada this week:

• Positive Sentiment: Second-quarter revenue increased 57.3% year over year to approximately $580.9 million, supported by higher precious-metals and oil prices. Gold’s continued rally could further benefit Franco-Nevada’s royalty and streaming portfolio. Franco-Nevada Q2 Earnings Miss Estimates, Revenues Soar 57% Y/Y
• Positive Sentiment: MarketBeat noted that rising gold prices, analyst price targets and technical indicators point to potential additional upside for FNV despite the quarterly miss. Franco-Nevada Earnings: Gold Is Rallying, But Does the Stock Even Care?
• Positive Sentiment: Franco-Nevada declared a quarterly dividend of $0.44 per share, payable September 24 to shareholders of record September 10. The dividend provides continued income support, although the indicated yield is approximately 0.7%.
• Neutral Sentiment: Zacks Research upgraded Franco-Nevada’s rating from “strong sell” to “hold,” indicating a less negative view but not an outright bullish recommendation. Zacks.com
• Negative Sentiment: Second-quarter adjusted earnings per share came in at $1.81, below the $1.95 consensus estimate, while revenue also missed expectations of approximately $616.7 million. Contracting margins added to investor concerns despite the sharp year-over-year growth. Franco-Nevada Q2 Earnings Miss Estimates, Revenues Soar 57% Y/Y

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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