Franco-Nevada (NYSE:FNV) Cut to “Hold” at Zacks Research

Franco-Nevada (NYSE:FNV) (TSE:FNV) was downgraded by investment analysts at Zacks Research from a “strong-buy” rating to a “hold” rating in a research report issued on Tuesday,Zacks.com reports.

Several other analysts have also commented on FNV. Canadian Imperial Bank of Commerce reissued an “outperform” rating on shares of Franco-Nevada in a research report on Wednesday, February 4th. Canaccord Genuity Group downgraded Franco-Nevada from a “strong-buy” rating to a “hold” rating in a report on Friday, January 23rd. HC Wainwright boosted their price target on Franco-Nevada from $285.00 to $305.00 and gave the stock a “buy” rating in a research note on Thursday, March 12th. Scotiabank increased their price objective on shares of Franco-Nevada from $283.00 to $286.00 and gave the company a “sector perform” rating in a research report on Monday, March 16th. Finally, UBS Group reaffirmed a “buy” rating and issued a $310.00 price objective on shares of Franco-Nevada in a research report on Friday, January 30th. Seven research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. Based on data from MarketBeat, Franco-Nevada currently has an average rating of “Moderate Buy” and a consensus price target of $257.25.

Franco-Nevada Price Performance

NYSE FNV opened at $255.48 on Tuesday. The business has a 50 day simple moving average of $251.76 and a two-hundred day simple moving average of $223.64. Franco-Nevada has a 1-year low of $140.03 and a 1-year high of $285.67. The stock has a market capitalization of $49.26 billion, a PE ratio of 44.35, a P/E/G ratio of 2.64 and a beta of 0.47.

Franco-Nevada (NYSE:FNV) (TSE:FNV) last issued its quarterly earnings results on Tuesday, March 10th. The basic materials company reported $1.85 earnings per share for the quarter, topping the consensus estimate of $1.67 by $0.18. Franco-Nevada had a return on equity of 15.62% and a net margin of 61.01%.The firm had revenue of $597.30 million for the quarter, compared to the consensus estimate of $542.02 million. During the same period in the prior year, the business posted $0.95 earnings per share. The company’s revenue for the quarter was up 86.1% on a year-over-year basis. On average, analysts anticipate that Franco-Nevada will post 3.09 EPS for the current fiscal year.

Hedge Funds Weigh In On Franco-Nevada

Institutional investors have recently modified their holdings of the stock. AQR Capital Management LLC purchased a new stake in shares of Franco-Nevada in the first quarter worth about $241,000. NewEdge Advisors LLC raised its position in Franco-Nevada by 16.7% during the first quarter. NewEdge Advisors LLC now owns 6,585 shares of the basic materials company’s stock valued at $1,038,000 after acquiring an additional 943 shares in the last quarter. Intech Investment Management LLC raised its position in 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 valued at $1,460,000 after acquiring an additional 5,032 shares in the last quarter. Acadian Asset Management LLC lifted its holdings in Franco-Nevada by 800.0% in the first quarter. Acadian Asset Management LLC now owns 2,700 shares of the basic materials company’s stock valued at $424,000 after acquiring an additional 2,400 shares during the period. Finally, Invesco Ltd. boosted its position in Franco-Nevada by 110.6% in the 2nd quarter. Invesco Ltd. now owns 902,017 shares of the basic materials company’s stock worth $147,859,000 after purchasing an additional 473,697 shares in the last quarter. Hedge funds and other institutional investors own 77.06% of the company’s stock.

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.