Franco-Nevada (NYSE:FNV) Shares Down 8.4% - Should You Sell?

Key Points

• Franco-Nevada shares fell 8.4% to about $227 during Wednesday trading, on volume 69% below the average daily level.
• Analysts remain generally positive, with 11 Buy ratings and four Holds, an overall “Moderate Buy” consensus, and an average price target of $274.90.
• The company’s latest quarter showed strong year-over-year revenue growth of 57.3%, but EPS and revenue missed estimates. Franco-Nevada also pays a quarterly dividend of $0.44 per share, yielding approximately 0.7%.

Shares of Franco-Nevada Corporation (NYSE:FNV - Get Free Report) TSE: FNV were down 8.4% during mid-day trading on Wednesday. The company traded as low as $242.90 and last traded at $227.0930. 256,041 shares were traded during trading, a decline of 69% from the average daily volume of 836,413 shares. The stock had previously closed at $247.94.

Wall Street Analyst Weigh In

A number of analysts have recently commented on FNV shares. Weiss Ratings restated a "buy (b-)" rating on shares of Franco-Nevada in a research report on Friday, September 4th. Bank of America decreased their target price on Franco-Nevada from $276.00 to $238.00 and set a "neutral" rating on the stock in a research report on Thursday, July 9th. Royal Bank Of Canada boosted their price target on shares of Franco-Nevada from $285.00 to $300.00 and gave the stock an "outperform" rating in a report on Wednesday, September 16th. UBS Group cut their price target on shares of Franco-Nevada from $310.00 to $280.00 and set a "buy" rating for the company in a report on Tuesday, June 30th. Finally, Scotiabank decreased 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 report on Tuesday, July 14th. Eleven analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $274.90.

Franco-Nevada Price Performance

The stock has a market capitalization of $46.04 billion, a price-to-earnings ratio of 31.10, a price-to-earnings-growth ratio of 2.27 and a beta of 0.39. The stock has a 50 day moving average price of $247.67 and a 200-day moving average price of $236.17.

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 EPS for the quarter, missing the consensus estimate of $1.95 by ($0.14). The firm had revenue of $580.90 million during the quarter, compared to analyst estimates of $616.66 million. Franco-Nevada had a net margin of 63.79% and a return on equity of 18.58%. The firm's revenue for the quarter was up 57.3% compared to the same quarter last year. During the same period in the prior year, the company posted $1.24 earnings per share. As a group, research analysts forecast that Franco-Nevada Corporation will post 7.54 earnings per share for the current year.

Franco-Nevada Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, September 24th. Stockholders of record on Thursday, September 10th were issued a dividend of $0.44 per share. The ex-dividend date of this dividend was Thursday, September 10th. This represents a $1.76 dividend on an annualized basis and a dividend yield of 0.7%. Franco-Nevada's dividend payout ratio is presently 23.01%.

Hedge Funds Weigh In On Franco-Nevada

Several hedge funds and other institutional investors have recently modified their holdings of the business. Silicon Valley Capital Partners purchased a new stake in Franco-Nevada during the 2nd quarter valued at about $31,000. Transamerica Financial Advisors LLC purchased a new position in Franco-Nevada in the 2nd quarter worth approximately $33,000. Global Retirement Partners LLC purchased a new position in Franco-Nevada in the 2nd quarter worth approximately $35,000. Dunhill Financial LLC acquired a new position in shares of Franco-Nevada during the 2nd quarter worth approximately $36,000. Finally, Ascentis Independent Advisors acquired a new position in shares of Franco-Nevada during the 1st quarter worth approximately $39,000. 77.06% of the stock is owned by hedge funds and other institutional investors.

About Franco-Nevada

Franco-Nevada Corporation NYSE: FNV is a gold-focused royalty and streaming company. Rather than operating mines directly, it provides capital to mining and natural resource companies in exchange for the right to receive a portion of future production or revenue. This business model gives Franco-Nevada exposure to commodity production while generally limiting its direct responsibility for operating and capital costs.

The company holds a diversified portfolio of royalties, streams and other interests tied primarily to gold, as well as silver, platinum-group metals, iron ore and other minerals.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.