Franco-Nevada (NYSE:FNV) Shares Down 8.4% – Should You Sell?

Shares of Franco-Nevada Corporation (NYSE:FNV) (TSE:FNV) were down 8.4% during mid-day trading on Wednesday. The company traded as low as $242.90 and last traded at $227.0930. 256,041 shares were traded during trading, a decline of 69% from the average daily volume of 836,413 shares. The stock had previously closed at $247.94.

Wall Street Analyst Weigh In

A number of analysts have recently commented on FNV shares. Weiss Ratings restated a “buy (b-)” rating on shares of Franco-Nevada in a research report on Friday, September 4th. Bank of America decreased their target price on Franco-Nevada from $276.00 to $238.00 and set a “neutral” rating on the stock in a research report on Thursday, July 9th. Royal Bank Of Canada boosted their price target on shares of Franco-Nevada from $285.00 to $300.00 and gave the stock an “outperform” rating in a report on Wednesday, September 16th. UBS Group cut their price target on shares of Franco-Nevada from $310.00 to $280.00 and set a “buy” rating for the company in a report on Tuesday, June 30th. Finally, Scotiabank decreased their price objective on shares of Franco-Nevada from $290.00 to $274.00 and set a “sector perform” rating on the stock in a report on Tuesday, July 14th. Eleven analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $274.90.

Franco-Nevada Price Performance

The stock has a market capitalization of $46.04 billion, a price-to-earnings ratio of 31.10, a price-to-earnings-growth ratio of 2.27 and a beta of 0.39. The stock has a 50 day moving average price of $247.67 and a 200-day moving average price of $236.17.

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 the consensus estimate of $1.95 by ($0.14). The firm had revenue of $580.90 million during the quarter, compared to analyst estimates of $616.66 million. Franco-Nevada had a net margin of 63.79% and a return on equity of 18.58%. The firm’s revenue for the quarter was up 57.3% compared to the same quarter last year. During the same period in the prior year, the company posted $1.24 earnings per share. As a group, research analysts forecast that Franco-Nevada Corporation will post 7.54 earnings per share for the current year.

Franco-Nevada Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, September 24th. Stockholders of record on Thursday, September 10th were issued a dividend of $0.44 per share. The ex-dividend date of this dividend was Thursday, September 10th. This represents a $1.76 dividend on an annualized basis and a dividend yield of 0.7%. Franco-Nevada’s dividend payout ratio is presently 23.01%.

Hedge Funds Weigh In On Franco-Nevada

Several hedge funds and other institutional investors have recently modified their holdings of the business. Silicon Valley Capital Partners purchased a new stake in Franco-Nevada during the 2nd quarter valued at about $31,000. Transamerica Financial Advisors LLC purchased a new position in Franco-Nevada in the 2nd quarter worth approximately $33,000. Global Retirement Partners LLC purchased a new position in Franco-Nevada in the 2nd quarter worth approximately $35,000. Dunhill Financial LLC acquired a new position in shares of Franco-Nevada during the 2nd quarter worth approximately $36,000. Finally, Ascentis Independent Advisors acquired a new position in shares of Franco-Nevada during the 1st quarter worth approximately $39,000. 77.06% of the stock is owned by hedge funds and other institutional investors.

About Franco-Nevada

Franco-Nevada Corporation (NYSE:FNV) is a gold-focused royalty and streaming company. Rather than operating mines directly, it provides capital to mining and natural resource companies in exchange for the right to receive a portion of future production or revenue. This business model gives Franco-Nevada exposure to commodity production while generally limiting its direct responsibility for operating and capital costs.

The company holds a diversified portfolio of royalties, streams and other interests tied primarily to gold, as well as silver, platinum-group metals, iron ore and other minerals.