Franco-Nevada (NYSE:FNV) Hits New 1-Year High – Still a Buy?

by · The Markets Daily

Franco-Nevada Corporation (NYSE:FNVGet Free Report) (TSE:FNV)’s stock price reached a new 52-week high during mid-day trading on Thursday . The stock traded as high as $225.70 and last traded at $225.3390, with a volume of 752985 shares. The stock had previously closed at $217.60.

Analysts Set New Price Targets

FNV has been the subject of a number of research analyst reports. Bank of America upped their price target on Franco-Nevada from $211.00 to $220.00 and gave the company a “neutral” rating in a report on Thursday, October 16th. UBS Group upped their target price on shares of Franco-Nevada from $260.00 to $270.00 and gave the company a “buy” rating in a report on Monday, December 1st. Canaccord Genuity Group raised shares of Franco-Nevada from a “hold” rating to a “strong-buy” rating in a research report on Wednesday, October 22nd. Royal Bank Of Canada raised shares of Franco-Nevada from a “sector perform” rating to an “outperform” rating and boosted their price target for the company from $225.00 to $250.00 in a research report on Wednesday, December 10th. Finally, Weiss Ratings restated a “buy (b-)” rating on shares of Franco-Nevada in a research note on Monday, December 29th. One investment analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $232.75.

Get Our Latest Research Report on Franco-Nevada

Franco-Nevada Stock Performance

The company has a market capitalization of $44.11 billion, a PE ratio of 47.97, a P/E/G ratio of 1.36 and a beta of 0.48. The company’s 50-day simple moving average is $204.95 and its 200-day simple moving average is $191.86.

Franco-Nevada (NYSE:FNVGet Free Report) (TSE:FNV) last announced its earnings results on Monday, November 3rd. The basic materials company reported $1.43 EPS for the quarter, beating analysts’ consensus estimates of $1.37 by $0.06. Franco-Nevada had a net margin of 59.48% and a return on equity of 13.94%. The business had revenue of $487.70 million during the quarter, compared to analysts’ expectations of $448.51 million. During the same period in the prior year, the company earned $0.80 earnings per share. The business’s revenue was up 76.9% compared to the same quarter last year. Analysts expect that Franco-Nevada Corporation will post 3.09 EPS for the current year.

Franco-Nevada Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, December 18th. Stockholders of record on Thursday, December 4th were issued a $0.38 dividend. The ex-dividend date of this dividend was Thursday, December 4th. This represents a $1.52 dividend on an annualized basis and a dividend yield of 0.7%. Franco-Nevada’s payout ratio is presently 31.87%.

Hedge Funds Weigh In On Franco-Nevada

Hedge funds and other institutional investors have recently bought and sold shares of the company. GAMMA Investing LLC lifted 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 worth $25,000 after acquiring an additional 64 shares during the period. Burkett Financial Services LLC acquired a new stake in Franco-Nevada in the third quarter valued at about $28,000. MTM Investment Management LLC purchased a new stake in Franco-Nevada in the 2nd quarter valued at approximately $32,000. Smartleaf Asset Management LLC increased its position in Franco-Nevada by 600.0% during the 2nd quarter. Smartleaf Asset Management LLC now owns 196 shares of the basic materials company’s stock worth $32,000 after purchasing an additional 168 shares during the period. Finally, Golden State Wealth Management LLC raised its stake in shares of Franco-Nevada by 78.3% during the 2nd quarter. Golden State Wealth Management LLC now owns 205 shares of the basic materials company’s stock worth $34,000 after buying an additional 90 shares in the last quarter. 77.06% of the stock is currently owned by hedge funds and other institutional investors.

Franco-Nevada Company Profile

(Get Free Report)

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.

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