Franco-Nevada (NYSE:FNV) Reaches New 1-Year High – Here’s Why

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

Analysts Set New Price Targets

A number of research firms have recently commented on FNV. 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. Weiss Ratings reiterated a “buy (b-)” rating on shares of Franco-Nevada in a research note on Monday, December 29th. Raymond James Financial raised their target price on Franco-Nevada from $218.00 to $234.00 and gave the company an “outperform” rating in a research report on Friday, October 10th. TD Securities lowered their price target on Franco-Nevada from $247.00 to $225.00 and set a “hold” rating on the stock in a research note on Wednesday, November 5th. Finally, Wall Street Zen upgraded Franco-Nevada from a “hold” rating to a “buy” rating in a research report on Monday, November 24th. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and six have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, Franco-Nevada currently has a consensus rating of “Moderate Buy” and a consensus target price of $232.75.

Franco-Nevada Stock Down 0.1%

The firm has a market capitalization of $45.75 billion, a PE ratio of 49.75, a price-to-earnings-growth ratio of 1.43 and a beta of 0.48. The business has a 50-day moving average price of $207.85 and a 200-day moving average price of $193.56.

Franco-Nevada (NYSE:FNV) (TSE:FNV) last announced its quarterly earnings data on Monday, November 3rd. The basic materials company reported $1.43 EPS for the quarter, topping analysts’ consensus estimates of $1.37 by $0.06. The firm had revenue of $487.70 million for the quarter, compared to the consensus estimate of $448.51 million. Franco-Nevada had a return on equity of 13.94% and a net margin of 59.48%.The firm’s revenue was up 76.9% compared to the same quarter last year. During the same quarter last year, the business posted $0.80 earnings per share. On average, equities research analysts anticipate that Franco-Nevada Corporation will post 3.09 earnings per share for the current year.

Franco-Nevada Dividend Announcement

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

Hedge Funds Weigh In On Franco-Nevada

Institutional investors have recently bought and sold shares of the company. GAMMA Investing LLC grew its stake in shares of Franco-Nevada by 112.3% in the 4th quarter. GAMMA Investing LLC now owns 121 shares of the basic materials company’s stock valued at $25,000 after buying an additional 64 shares during the period. Burkett Financial Services LLC purchased a new stake in shares of Franco-Nevada during the 3rd quarter valued at approximately $28,000. MTM Investment Management LLC acquired a new position in Franco-Nevada in the second quarter valued at approximately $32,000. Smartleaf Asset Management LLC grew its position in Franco-Nevada by 600.0% in the second quarter. Smartleaf Asset Management LLC now owns 196 shares of the basic materials company’s stock worth $32,000 after acquiring an additional 168 shares during the period. Finally, Golden State Wealth Management LLC increased its stake in Franco-Nevada by 78.3% during the second quarter. Golden State Wealth Management LLC now owns 205 shares of the basic materials company’s stock worth $34,000 after acquiring an additional 90 shares during the last quarter. 77.06% of the stock is owned by hedge funds and other institutional investors.

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.