Franco-Nevada (NYSE:FNV) Sets New 52-Week High – Here’s Why

Franco-Nevada Corporation (NYSE:FNV) (TSE:FNV)’s share price reached a new 52-week high during trading on Thursday . The stock traded as high as $225.70 and last traded at $225.3390, with a volume of 752985 shares changing hands. The stock had previously closed at $217.60.

Analyst Upgrades and Downgrades

A number of research firms have issued reports on FNV. TD Securities decreased their target price on Franco-Nevada from $247.00 to $225.00 and set a “hold” rating for the company in a research report on Wednesday, November 5th. HC Wainwright upped their price target on Franco-Nevada from $200.00 to $210.00 and gave the company a “buy” rating in a research report on Tuesday, November 4th. Wall Street Zen raised Franco-Nevada from a “hold” rating to a “buy” rating in a report on Monday, November 24th. Bank of America boosted their price objective on Franco-Nevada from $211.00 to $220.00 and gave the company a “neutral” rating in a research note on Thursday, October 16th. Finally, Raymond James Financial upped their price objective on shares of Franco-Nevada from $218.00 to $234.00 and gave the company an “outperform” rating in a report on Friday, October 10th. One equities research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and six have issued a Hold rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $232.75.

Franco-Nevada Price Performance

The stock has a market capitalization of $43.44 billion, a PE ratio of 47.24, a P/E/G ratio of 1.32 and a beta of 0.48. The business’s fifty day moving average price is $203.38 and its 200-day moving average price is $191.19.

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

Franco-Nevada Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, December 18th. Stockholders of record on Thursday, December 4th were issued a $0.38 dividend. The ex-dividend date of this dividend was Thursday, December 4th. This represents a $1.52 annualized dividend and a dividend yield of 0.7%. Franco-Nevada’s dividend payout ratio is presently 31.87%.

Institutional Investors Weigh In On Franco-Nevada

Several large investors have recently added to or reduced their stakes in FNV. Osaic Holdings Inc. grew its position in shares of Franco-Nevada by 210.4% in the 2nd quarter. Osaic Holdings Inc. now owns 18,235 shares of the basic materials company’s stock worth $2,989,000 after buying an additional 12,360 shares during the last quarter. Allspring Global Investments Holdings LLC raised its holdings in shares of Franco-Nevada by 4.5% during 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 acquiring an additional 4,900 shares in the last quarter. Markel Group Inc. lifted its stake in Franco-Nevada by 8.4% in the second quarter. Markel Group Inc. now owns 569,500 shares of the basic materials company’s stock worth $93,352,000 after acquiring an additional 44,250 shares during the period. Altfest L J & Co. Inc. boosted its holdings in Franco-Nevada by 189.2% in the third 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 in the last quarter. Finally, Horizon Kinetics Asset Management LLC increased its position in Franco-Nevada by 2.6% during the 2nd quarter. Horizon Kinetics Asset Management LLC now owns 1,043,546 shares of the basic materials company’s stock valued at $171,058,000 after purchasing an additional 26,772 shares during the period. 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.