Franco-Nevada (NYSE:FNV) Downgraded by Wall Street Zen to Hold

Wall Street Zen lowered shares of Franco-Nevada (NYSE:FNV) (TSE:FNV) from a buy rating to a hold rating in a research note issued to investors on Saturday.

A number of other analysts have also recently issued reports on FNV. Scotiabank boosted their target price on Franco-Nevada from $286.00 to $290.00 and gave the stock a “sector perform” rating in a report on Thursday. HC Wainwright restated a “buy” rating and issued a $305.00 price target on shares of Franco-Nevada in a report on Wednesday. Zacks Research cut Franco-Nevada from a “strong-buy” rating to a “hold” rating in a report on Tuesday, March 31st. UBS Group reaffirmed a “buy” rating and issued a $310.00 target price on shares of Franco-Nevada in a research report on Friday, January 30th. Finally, Canaccord Genuity Group raised Franco-Nevada from a “hold” rating to a “buy” rating in a research report on Wednesday, April 29th. Nine research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $257.75.

Franco-Nevada Stock Performance

Shares of NYSE:FNV opened at $225.39 on Friday. Franco-Nevada has a 1 year low of $152.89 and a 1 year high of $285.67. The stock has a market capitalization of $43.47 billion, a P/E ratio of 31.74, a PEG ratio of 1.96 and a beta of 0.34. The stock has a 50-day simple moving average of $245.94 and a 200-day simple moving average of $231.41.

Franco-Nevada (NYSE:FNV) (TSE:FNV) last issued its earnings results on Tuesday, May 12th. The basic materials company reported $2.38 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.09 by $0.29. Franco-Nevada had a return on equity of 18.10% and a net margin of 65.12%.The business had revenue of $650.70 million during the quarter, compared to analysts’ expectations of $634.43 million. During the same quarter in the previous year, the business earned $1.07 EPS. The company’s revenue for the quarter was up 76.6% on a year-over-year basis. Analysts predict that Franco-Nevada will post 8.84 earnings per share for the current year.

Franco-Nevada Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, June 25th. Stockholders of record on Thursday, June 11th will be paid a $0.44 dividend. The ex-dividend date of this dividend is Thursday, June 11th. This represents a $1.76 annualized dividend and a dividend yield of 0.8%. Franco-Nevada’s dividend payout ratio is presently 24.79%.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. TD Waterhouse Canada Inc. lifted its holdings in shares of Franco-Nevada by 8.1% during the third quarter. TD Waterhouse Canada Inc. now owns 275,747 shares of the basic materials company’s stock valued at $59,623,000 after purchasing an additional 20,664 shares during the last quarter. Gruss & Co. LLC purchased a new stake in shares of Franco-Nevada during the 3rd quarter worth about $557,000. TD Asset Management Inc raised its stake in shares of Franco-Nevada by 0.9% during the 3rd quarter. TD Asset Management Inc now owns 2,030,684 shares of the basic materials company’s stock worth $452,095,000 after purchasing an additional 18,897 shares in the last quarter. Legal & General Group Plc raised its stake in shares of Franco-Nevada by 6.0% during the 3rd quarter. Legal & General Group Plc now owns 986,672 shares of the basic materials company’s stock worth $219,665,000 after purchasing an additional 55,954 shares in the last quarter. Finally, Addenda Capital Inc. raised its stake in shares of Franco-Nevada by 88.1% during the 4th quarter. Addenda Capital Inc. now owns 203,643 shares of the basic materials company’s stock worth $42,211,000 after purchasing an additional 95,405 shares in the last quarter. Institutional investors own 77.06% of the company’s stock.

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.