Franco-Nevada (NYSE:FNV) Downgraded to Hold Rating by Zacks Research

Zacks Research downgraded shares of Franco-Nevada (NYSE:FNV) (TSE:FNV) from a strong-buy rating to a hold rating in a research report sent to investors on Tuesday morning,Zacks.com reports.

Other equities research analysts have also issued research reports about the stock. Jefferies Financial Group restated a “hold” rating and set a $228.00 price target on shares of Franco-Nevada in a research note on Sunday, December 7th. Weiss Ratings upgraded Franco-Nevada from a “hold (c+)” rating to a “buy (b)” rating in a research note on Friday, March 20th. Royal Bank Of Canada raised Franco-Nevada from a “sector perform” rating to an “outperform” rating and increased their price objective for the company from $225.00 to $250.00 in a report on Wednesday, December 10th. HC Wainwright raised their target price on Franco-Nevada from $285.00 to $305.00 and gave the stock a “buy” rating in a research report on Thursday, March 12th. Finally, Canadian Imperial Bank of Commerce restated an “outperform” rating on shares of Franco-Nevada in a research note on Wednesday, February 4th. Seven analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $257.25.

Franco-Nevada Stock Performance

Shares of NYSE:FNV opened at $255.48 on Tuesday. The company has a market capitalization of $49.26 billion, a P/E ratio of 44.35, a price-to-earnings-growth ratio of 2.64 and a beta of 0.47. The company’s 50-day moving average is $251.76 and its 200 day moving average is $223.64. Franco-Nevada has a fifty-two week low of $140.03 and a fifty-two week high of $285.67.

Franco-Nevada (NYSE:FNV) (TSE:FNV) last posted its quarterly earnings data on Tuesday, March 10th. The basic materials company reported $1.85 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.67 by $0.18. The business had revenue of $597.30 million during the quarter, compared to the consensus estimate of $542.02 million. Franco-Nevada had a net margin of 61.01% and a return on equity of 15.62%. The firm’s quarterly revenue was up 86.1% compared to the same quarter last year. During the same quarter last year, the company posted $0.95 earnings per share. As a group, research analysts predict that Franco-Nevada will post 3.09 earnings per share for the current year.

Franco-Nevada Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, March 26th. Investors of record on Thursday, March 12th were paid a dividend of $0.44 per share. This represents a $1.76 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date was Thursday, March 12th. This is an increase from Franco-Nevada’s previous quarterly dividend of $0.38. Franco-Nevada’s dividend payout ratio is currently 30.56%.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the business. GAMMA Investing LLC raised its holdings in Franco-Nevada by 112.3% during the 4th quarter. GAMMA Investing LLC now owns 121 shares of the basic materials company’s stock valued at $25,000 after acquiring an additional 64 shares during the period. Transamerica Financial Advisors LLC bought a new position in shares of Franco-Nevada in the fourth quarter worth $25,000. Burkett Financial Services LLC bought a new position in shares of Franco-Nevada in the third quarter worth $28,000. Private Trust Co. NA purchased a new position in shares of Franco-Nevada in the fourth quarter valued at $29,000. Finally, Smartleaf Asset Management LLC raised its stake in shares of Franco-Nevada by 600.0% during the 2nd quarter. Smartleaf Asset Management LLC now owns 196 shares of the basic materials company’s stock valued at $32,000 after purchasing an additional 168 shares during the period. 77.06% of the stock is owned by institutional investors.

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.