Franco-Nevada Corporation (NYSE:FNV) Given Consensus Recommendation of "Moderate Buy" by Brokerages

Key Points

• "Moderate Buy" consensus from 14 brokerages (7 hold, 6 buy, 1 strong buy) with an average 12‑month price target of $257.25.
• Franco‑Nevada beat the quarter—EPS $1.85 vs $1.67 expected and revenue $597.3M vs $542M, up 86.1% year‑over‑year; market cap is about $48.95B with a P/E around 44.
• The board raised the quarterly dividend to $0.44 (annualized $1.76, ~0.7% yield) and roughly 77% of the stock is held by institutional investors.

Franco-Nevada Corporation (NYSE:FNV - Get Free Report) TSE: FNV has been given an average rating of "Moderate Buy" by the fourteen brokerages that are presently covering the company, Marketbeat reports. Seven research analysts have rated the stock with a hold recommendation, six have given a buy recommendation and one has assigned a strong buy recommendation to the company. The average 12 month price objective among brokers that have covered the stock in the last year is $257.25.

A number of analysts have issued reports on the company. Zacks Research raised Franco-Nevada from a "hold" rating to a "strong-buy" rating in a report on Friday, February 27th. HC Wainwright increased their price objective on Franco-Nevada from $285.00 to $305.00 and gave the company a "buy" rating in a report on Thursday, March 12th. Canadian Imperial Bank of Commerce reissued an "outperform" rating on shares of Franco-Nevada in a research report on Wednesday, February 4th. Weiss Ratings cut Franco-Nevada from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Friday, March 6th. Finally, Canaccord Genuity Group lowered shares of Franco-Nevada from a "strong-buy" rating to a "hold" rating in a research note on Friday, January 23rd.

Franco-Nevada Stock Up 0.8%

NYSE FNV opened at $253.87 on Tuesday. Franco-Nevada has a 52 week low of $140.03 and a 52 week high of $285.67. The firm has a 50 day moving average of $251.58 and a two-hundred day moving average of $220.27. The stock has a market capitalization of $48.95 billion, a PE ratio of 44.07, a price-to-earnings-growth ratio of 3.65 and a beta of 0.45.

Franco-Nevada (NYSE:FNV - Get Free Report) TSE: FNV last released its quarterly earnings data on Tuesday, March 10th. The basic materials company reported $1.85 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.67 by $0.18. The business had revenue of $597.30 million during the quarter, compared to analysts' expectations of $542.02 million. Franco-Nevada had a net margin of 61.01% and a return on equity of 15.62%. The company's revenue for the quarter was up 86.1% on a year-over-year basis. During the same period in the previous year, the company earned $0.95 EPS. On average, equities research analysts expect that Franco-Nevada will post 3.09 earnings per share for the current fiscal year.

Franco-Nevada Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, March 26th. Stockholders of record on Thursday, March 12th will be given a dividend of $0.44 per share. The ex-dividend date is Thursday, March 12th. This represents a $1.76 annualized dividend and a dividend yield of 0.7%. This is a boost from Franco-Nevada's previous quarterly dividend of $0.38. Franco-Nevada's payout ratio is presently 30.56%.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of FNV. AQR Capital Management LLC purchased a new stake in Franco-Nevada in the first quarter valued at $241,000. NewEdge Advisors LLC grew its holdings 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 purchasing an additional 943 shares during the last quarter. Intech Investment Management LLC grew its holdings in shares of Franco-Nevada by 118.3% during the first quarter. Intech Investment Management LLC now owns 9,286 shares of the basic materials company's stock worth $1,460,000 after purchasing an additional 5,032 shares during the last quarter. Acadian Asset Management LLC increased its position in shares of Franco-Nevada by 800.0% during the first quarter. Acadian Asset Management LLC now owns 2,700 shares of the basic materials company's stock worth $424,000 after purchasing an additional 2,400 shares in the last quarter. Finally, Savant Capital LLC acquired a new stake in shares of Franco-Nevada during the second quarter worth about $317,000. 77.06% of the stock is owned by hedge funds and other institutional investors.

About Franco-Nevada

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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