Franco-Nevada (NYSE:FNV) Reaches New 52-Week High - Still a Buy?

Key Points

• Franco-Nevada's share price reached a new 52-week high at $198.91, with a trading volume of over 1 million shares.
• Recent analyst ratings show a mixed sentiment, with Zacks Research downgrading the stock to a "hold" while BMO Capital Markets maintained an "outperform" rating.
• The company reported a 42% year-over-year increase in revenue, achieving $1.24 earnings per share, exceeding analyst expectations by $0.14.

Franco-Nevada Corporation (NYSE:FNV - Get Free Report) TSE: FNV hit a new 52-week high during mid-day trading on Thursday . The stock traded as high as $198.91 and last traded at $198.81, with a volume of 1118164 shares changing hands. The stock had previously closed at $196.15.

Wall Street Analysts Forecast Growth

Several analysts have issued reports on FNV shares. National Bankshares reaffirmed a "sector perform" rating on shares of Franco-Nevada in a report on Tuesday, June 24th. Zacks Research downgraded shares of Franco-Nevada from a "strong-buy" rating to a "hold" rating in a report on Wednesday, August 20th. UBS Group upped their price target on shares of Franco-Nevada from $205.00 to $210.00 and gave the company a "buy" rating in a report on Thursday, July 3rd. CIBC restated an "outperform" rating on shares of Franco-Nevada in a research report on Tuesday, July 15th. Finally, HC Wainwright raised their target price on shares of Franco-Nevada from $195.00 to $200.00 and gave the stock a "buy" rating in a research report on Tuesday, August 12th. Seven equities research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $178.88.

Franco-Nevada Price Performance

The stock has a market cap of $38.99 billion, a P/E ratio of 49.68, a PEG ratio of 2.68 and a beta of 0.41. The business's 50 day simple moving average is $174.71 and its 200 day simple moving average is $166.35.

Franco-Nevada (NYSE:FNV - Get Free Report) TSE: FNV last posted its quarterly earnings data on Monday, August 11th. The basic materials company reported $1.24 earnings per share for the quarter, topping the consensus estimate of $1.10 by $0.14. The company had revenue of $369.40 million during the quarter, compared to analyst estimates of $382.70 million. Franco-Nevada had a net margin of 58.82% and a return on equity of 12.56%. The company's revenue was up 42.0% on a year-over-year basis. During the same quarter last year, the business posted $0.75 earnings per share. Research analysts predict that Franco-Nevada Corporation will post 3.09 earnings per share for the current year.

Franco-Nevada Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 25th. Stockholders of record on Thursday, September 11th will be given a dividend of $0.38 per share. This represents a $1.52 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date of this dividend is Thursday, September 11th. Franco-Nevada's dividend payout ratio (DPR) is currently 37.35%.

Institutional Investors Weigh In On Franco-Nevada

Several institutional investors have recently added to or reduced their stakes in the stock. Norges Bank acquired a new position in shares of Franco-Nevada during the 2nd quarter worth about $460,218,000. Connor Clark & Lunn Investment Management Ltd. increased its stake in shares of Franco-Nevada by 198.1% during the 1st quarter. Connor Clark & Lunn Investment Management Ltd. now owns 1,705,489 shares of the basic materials company's stock worth $268,280,000 after purchasing an additional 1,133,373 shares during the last quarter. Arrowstreet Capital Limited Partnership increased its stake in shares of Franco-Nevada by 35.2% during the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 3,220,029 shares of the basic materials company's stock worth $528,289,000 after purchasing an additional 838,853 shares during the last quarter. Picton Mahoney Asset Management acquired a new position in shares of Franco-Nevada during the 2nd quarter worth about $80,621,000. Finally, Scharf Investments LLC acquired a new position in Franco-Nevada in the 2nd quarter valued at about $78,509,000. 77.06% of the stock is owned by institutional investors.

Franco-Nevada Company Profile

Franco-Nevada Corporation operates as a gold-focused royalty and streaming company in South America, Central America, Mexico, the United States, Canada, and internationally. It operates through Mining and Energy segments. The company manages its portfolio with a focus on precious metals, such as gold, silver, and platinum group metals; and engages in the sale of crude oil, natural gas, and natural gas liquids through a third-party marketing agent.