Franco-Nevada (NYSE:FNV) Releases Earnings Results, Misses Expectations By $0.14 EPS

Franco-Nevada (NYSE:FNV) (TSE:FNV) released its quarterly earnings data on Tuesday. The basic materials company reported $1.81 EPS for the quarter, missing the consensus estimate of $1.95 by ($0.14), Zacks reports. Franco-Nevada had a return on equity of 18.10% and a net margin of 65.12%.

Franco-Nevada Stock Performance

Franco-Nevada stock traded up $0.16 during midday trading on Tuesday, reaching $241.06. 702,485 shares of the stock were exchanged, compared to its average volume of 857,395. Franco-Nevada has a 52 week low of $173.39 and a 52 week high of $285.67. The firm has a market cap of $46.49 billion, a PE ratio of 33.95, a PEG ratio of 2.01 and a beta of 0.35. The company’s fifty day moving average is $215.22 and its 200-day moving average is $235.73.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the company. Royal Bank of Canada increased its holdings in shares of Franco-Nevada by 10.2% in the fourth quarter. Royal Bank of Canada now owns 2,808,645 shares of the basic materials company’s stock worth $582,177,000 after purchasing an additional 260,793 shares during the period. Carmignac Gestion boosted its stake in Franco-Nevada by 797.2% during the fourth quarter. Carmignac Gestion now owns 225,511 shares of the basic materials company’s stock valued at $46,744,000 after buying an additional 200,376 shares during the period. Marshall Wace LLP boosted its stake in Franco-Nevada by 3,298.4% during the fourth quarter. Marshall Wace LLP now owns 192,313 shares of the basic materials company’s stock valued at $39,863,000 after buying an additional 186,654 shares during the period. Morgan Stanley boosted its stake in Franco-Nevada by 20.5% during the fourth quarter. Morgan Stanley now owns 906,771 shares of the basic materials company’s stock valued at $187,956,000 after buying an additional 154,297 shares during the period. Finally, Quadrature Capital Ltd purchased a new position in Franco-Nevada during the fourth quarter worth about $27,107,000. 77.06% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of equities research analysts have issued reports on FNV shares. TD raised shares of Franco-Nevada from a “hold” rating to a “buy” rating and lowered their target price for the company from $292.00 to $291.00 in a report on Wednesday, May 20th. TD Cowen upgraded Franco-Nevada from a “hold” rating to a “buy” rating and reduced their price target for the company from $292.00 to $291.00 in a research report on Wednesday, May 20th. UBS Group decreased their price objective on Franco-Nevada from $310.00 to $280.00 and set a “buy” rating on the stock in a research note on Tuesday, June 30th. HC Wainwright reiterated a “buy” rating and set a $305.00 price objective on shares of Franco-Nevada in a research note on Wednesday, May 13th. Finally, Weiss Ratings cut Franco-Nevada from a “buy (b)” rating to a “buy (b-)” rating in a report on Monday, June 8th. Eleven investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, Franco-Nevada presently has a consensus rating of “Moderate Buy” and an average target price of $273.40.

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.