U S Global Investors Inc. Trims Stock Position in Franco-Nevada Corporation $FNV

U S Global Investors Inc. reduced its stake in shares of Franco-Nevada Corporation (NYSE:FNV) (TSE:FNV) by 4.5% during the 2nd quarter, according to its most recent filing with the SEC. The firm owned 80,622 shares of the basic materials company’s stock after selling 3,788 shares during the period. Franco-Nevada makes up approximately 1.6% of U S Global Investors Inc.’s portfolio, making the stock its 16th biggest holding. U S Global Investors Inc.’s holdings in Franco-Nevada were worth $16,805,000 as of its most recent filing with the SEC.

A number of other institutional investors have also modified their holdings of the stock. Transamerica Financial Advisors LLC acquired a new position in shares of Franco-Nevada in the 4th quarter valued at about $25,000. Private Trust Co. NA acquired a new stake in Franco-Nevada during the fourth quarter worth about $29,000. Smartleaf Asset Management LLC raised its position in Franco-Nevada by 600.0% during the second quarter. Smartleaf Asset Management LLC now owns 196 shares of the basic materials company’s stock valued at $32,000 after acquiring an additional 168 shares in the last quarter. Navalign LLC purchased a new position in Franco-Nevada during the fourth quarter valued at approximately $34,000. Finally, Quattro Advisors LLC acquired a new position in Franco-Nevada in the fourth quarter valued at approximately $36,000. Hedge funds and other institutional investors own 77.06% of the company’s stock.

Franco-Nevada Trading Down 1.7%

Shares of FNV stock opened at $231.82 on Friday. Franco-Nevada Corporation has a 12-month low of $173.39 and a 12-month high of $285.67. The business’s 50 day moving average is $215.37 and its two-hundred day moving average is $235.32. The company has a market capitalization of $44.71 billion, a P/E ratio of 30.30, a P/E/G ratio of 1.99 and a beta of 0.35.

Franco-Nevada (NYSE:FNV) (TSE:FNV) last posted its quarterly earnings data on Tuesday, August 11th. The basic materials company reported $1.81 EPS for the quarter, missing analysts’ consensus estimates of $1.95 by ($0.14). The business had revenue of $580.90 million during the quarter, compared to analysts’ expectations of $616.66 million. Franco-Nevada had a net margin of 63.79% and a return on equity of 18.98%. The firm’s quarterly revenue was up 57.3% compared to the same quarter last year. During the same quarter last year, the firm earned $1.24 earnings per share. On average, research analysts predict that Franco-Nevada Corporation will post 8.23 earnings per share for the current fiscal year.

Franco-Nevada Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 24th. Investors of record on Thursday, September 10th will be issued a $0.44 dividend. This represents a $1.76 annualized dividend and a yield of 0.8%. The ex-dividend date of this dividend is Thursday, September 10th. Franco-Nevada’s payout ratio is presently 23.01%.

Analyst Ratings Changes

Several equities research analysts have commented on FNV shares. TD upgraded Franco-Nevada from a “hold” rating to a “buy” rating and lowered their price objective for the stock from $292.00 to $291.00 in a research report on Wednesday, May 20th. National Bank Financial upgraded shares of Franco-Nevada from a “sector perform” rating to an “outperform” rating in a research note on Wednesday, May 13th. Bank of America decreased their target price on shares of Franco-Nevada from $276.00 to $238.00 and set a “neutral” rating for the company in a research note on Thursday, July 9th. TD Securities raised shares of Franco-Nevada from a “hold” rating to a “buy” rating and set a $291.00 price target on the stock in a report on Wednesday, May 20th. Finally, Wall Street Zen lowered shares of Franco-Nevada from a “buy” rating to a “hold” rating in a research report on Monday, June 1st. Eleven research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat.com, Franco-Nevada currently has a consensus rating of “Moderate Buy” and an average price target of $273.40.

Franco-Nevada News Roundup

Here are the key news stories impacting Franco-Nevada this week:

• Positive Sentiment: Second-quarter revenue increased 57.3% year over year to approximately $580.9 million, supported by higher precious-metals and oil prices. Gold’s continued rally could further benefit Franco-Nevada’s royalty and streaming portfolio. Franco-Nevada Q2 Earnings Miss Estimates, Revenues Soar 57% Y/Y
• Positive Sentiment: MarketBeat noted that rising gold prices, analyst price targets and technical indicators point to potential additional upside for FNV despite the quarterly miss. Franco-Nevada Earnings: Gold Is Rallying, But Does the Stock Even Care?
• Positive Sentiment: Franco-Nevada declared a quarterly dividend of $0.44 per share, payable September 24 to shareholders of record September 10. The dividend provides continued income support, although the indicated yield is approximately 0.7%.
• Neutral Sentiment: Zacks Research upgraded Franco-Nevada’s rating from “strong sell” to “hold,” indicating a less negative view but not an outright bullish recommendation. Zacks.com
• Negative Sentiment: Second-quarter adjusted earnings per share came in at $1.81, below the $1.95 consensus estimate, while revenue also missed expectations of approximately $616.7 million. Contracting margins added to investor concerns despite the sharp year-over-year growth. Franco-Nevada Q2 Earnings Miss Estimates, Revenues Soar 57% Y/Y

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.