Franco-Nevada (NYSE:FNV) Hits New 1-Year High – What’s Next?

Franco-Nevada Corporation (NYSE:FNV) (TSE:FNV)’s share price hit a new 52-week high during trading on Thursday . The company traded as high as $241.88 and last traded at $237.2960, with a volume of 797673 shares changing hands. The stock had previously closed at $237.63.

Analyst Upgrades and Downgrades

A number of research firms recently issued reports on FNV. Bank of America increased their price objective on Franco-Nevada from $211.00 to $220.00 and gave the stock a “neutral” rating in a report on Thursday, October 16th. Zacks Research downgraded Franco-Nevada from a “strong-buy” rating to a “hold” rating in a research report on Monday, December 8th. Canaccord Genuity Group raised shares of Franco-Nevada from a “hold” rating to a “strong-buy” rating in a research note on Wednesday, October 22nd. Wall Street Zen raised shares of Franco-Nevada from a “hold” rating to a “buy” rating in a research report on Monday, November 24th. Finally, HC Wainwright increased their target price on shares of Franco-Nevada from $200.00 to $210.00 and gave the stock a “buy” rating in a report on Tuesday, November 4th. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and six have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $232.75.

Franco-Nevada Trading Up 1.4%

The company has a market cap of $47.00 billion, a P/E ratio of 51.10, a PEG ratio of 1.45 and a beta of 0.48. The business has a 50 day moving average price of $209.93 and a 200-day moving average price of $194.44.

Franco-Nevada (NYSE:FNV) (TSE:FNV) last released its earnings results on Monday, November 3rd. The basic materials company reported $1.43 earnings per share for the quarter, beating the consensus estimate of $1.37 by $0.06. Franco-Nevada had a net margin of 59.48% and a return on equity of 13.94%. The business had revenue of $487.70 million during the quarter, compared to analysts’ expectations of $448.51 million. During the same period last year, the business earned $0.80 earnings per share. The firm’s revenue was up 76.9% on a year-over-year basis. On average, sell-side analysts expect that Franco-Nevada Corporation will post 3.09 earnings per share for the current year.

Franco-Nevada Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, December 18th. Stockholders of record on Thursday, December 4th were paid a dividend of $0.38 per share. The ex-dividend date was Thursday, December 4th. This represents a $1.52 annualized dividend and a dividend yield of 0.6%. Franco-Nevada’s payout ratio is currently 31.87%.

Institutional Investors Weigh In On Franco-Nevada

Hedge funds have recently bought and sold shares of the company. Allspring Global Investments Holdings LLC boosted its stake in shares of Franco-Nevada by 4.5% in the third quarter. Allspring Global Investments Holdings LLC now owns 114,465 shares of the basic materials company’s stock valued at $25,515,000 after buying an additional 4,900 shares during the period. Osaic Holdings Inc. raised its holdings in Franco-Nevada by 210.4% in the 2nd quarter. Osaic Holdings Inc. now owns 18,235 shares of the basic materials company’s stock valued at $2,989,000 after acquiring an additional 12,360 shares in the last quarter. Altfest L J & Co. Inc. lifted its position in shares of Franco-Nevada by 189.2% during the 3rd quarter. Altfest L J & Co. Inc. now owns 7,556 shares of the basic materials company’s stock valued at $1,684,000 after acquiring an additional 4,943 shares during the period. Markel Group Inc. grew its holdings in shares of Franco-Nevada by 8.4% during the 2nd quarter. Markel Group Inc. now owns 569,500 shares of the basic materials company’s stock worth $93,352,000 after purchasing an additional 44,250 shares in the last quarter. Finally, Horizon Kinetics Asset Management LLC increased its position in shares of Franco-Nevada by 2.6% in the second quarter. Horizon Kinetics Asset Management LLC now owns 1,043,546 shares of the basic materials company’s stock worth $171,058,000 after purchasing an additional 26,772 shares during the period. 77.06% of the stock is currently owned by institutional investors and hedge funds.

Franco-Nevada Company 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.