Franco-Nevada (NYSE:FNV) Rating Lowered to “Strong Sell” at Zacks Research

Franco-Nevada (NYSE:FNV) (TSE:FNV) was downgraded by analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a research note issued on Monday,Zacks.com reports.

Several other research analysts also recently commented on the company. Canaccord Genuity Group upgraded Franco-Nevada from a “hold” rating to a “buy” rating in a research note on Wednesday, April 29th. Scotiabank dropped their price target on Franco-Nevada from $290.00 to $274.00 and set a “sector perform” rating on the stock in a research note on Tuesday. Jefferies Financial Group cut their price target on Franco-Nevada from $258.00 to $245.00 and set a “hold” rating for the company in a report on Monday, July 6th. TD Cowen raised shares of Franco-Nevada from a “hold” rating to a “buy” rating and reduced their price objective for the stock from $292.00 to $291.00 in a research report on Wednesday, May 20th. Finally, Weiss Ratings downgraded shares of Franco-Nevada from a “buy (b)” rating to a “buy (b-)” rating in a report on Monday, June 8th. Eleven research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $273.40.

Franco-Nevada Stock Performance

Franco-Nevada stock opened at $202.88 on Monday. Franco-Nevada has a 52 week low of $152.89 and a 52 week high of $285.67. The stock has a market capitalization of $39.13 billion, a P/E ratio of 28.57, a PEG ratio of 1.69 and a beta of 0.36. The stock has a 50-day simple moving average of $220.49 and a 200 day simple moving average of $236.89.

Franco-Nevada (NYSE:FNV) (TSE:FNV) last announced its quarterly earnings results on Tuesday, May 12th. The basic materials company reported $2.38 earnings per share for the quarter, topping analysts’ consensus estimates of $2.09 by $0.29. The firm had revenue of $650.70 million for the quarter, compared to the consensus estimate of $634.43 million. Franco-Nevada had a return on equity of 18.10% and a net margin of 65.12%.The business’s revenue was up 76.6% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.07 earnings per share. Research analysts forecast that Franco-Nevada will post 8.22 earnings per share for the current year.

Hedge Funds Weigh In On Franco-Nevada

Large investors have recently made changes to their positions in the company. Annex Advisory Services LLC lifted its holdings in Franco-Nevada by 70.5% during the 2nd quarter. Annex Advisory Services LLC now owns 160,605 shares of the basic materials company’s stock worth $33,477,000 after purchasing an additional 66,432 shares during the last quarter. Salvus Wealth Management LLC grew its holdings in Franco-Nevada by 3.0% in the 2nd quarter. Salvus Wealth Management LLC now owns 5,470 shares of the basic materials company’s stock valued at $1,140,000 after buying an additional 160 shares in the last quarter. Revolve Wealth Partners LLC acquired a new position in Franco-Nevada in the 2nd quarter valued at $422,000. PensionDanmark Pensionsforsikringsaktieselskab increased its position in Franco-Nevada by 13.8% during the 2nd quarter. PensionDanmark Pensionsforsikringsaktieselskab now owns 41,319 shares of the basic materials company’s stock worth $8,619,000 after buying an additional 5,000 shares during the period. Finally, Assenagon Asset Management S.A. increased its position in Franco-Nevada by 24.0% during the 2nd quarter. Assenagon Asset Management S.A. now owns 8,373 shares of the basic materials company’s stock worth $1,746,000 after buying an additional 1,619 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.