Zacks Investment Research downgraded shares of Franco Nevada (NYSE:FNV) (TSE:FNV) from a buy rating to a hold rating in a research note issued to investors on Thursday morning.

According to Zacks, “Franco-Nevada had earlier lowered 2018 production guidance to 440,000-470,000 Gold Equivalent Ounces (“GEO”) owing to reduced deliveries from Candelaria mine. However, this will be mitigated by the Oil & Gas portfolio’s performance, driven by acquisitions and higher oil prices. Franco-Nevada entered into a strategic relationship with Continental Resources, Inc. to acquire Oil & Gas mineral rights in the SCOOP and STACK plays of Oklahoma. The company is also investing heavily in Cobre Panama. Despite near-term uncertainty, it will be key growth driver for the company. Franco-Nevada has outperformed the industry in the past year. However, the company's streached valuation is a concern.”

Several other equities analysts have also recently commented on FNV. ValuEngine raised shares of Franco Nevada from a hold rating to a buy rating in a research note on Wednesday, November 21st. Royal Bank of Canada reaffirmed a buy rating and set a $118.00 price objective on shares of Franco Nevada in a research note on Wednesday, December 12th. BMO Capital Markets reaffirmed a hold rating on shares of Franco Nevada in a research note on Monday, December 17th. Finally, Raymond James reaffirmed an outperform rating and set a $88.00 price objective on shares of Franco Nevada in a research note on Monday, February 11th. Seven research analysts have rated the stock with a hold rating and five have issued a buy rating to the company’s stock. Franco Nevada currently has an average rating of Hold and a consensus price target of $85.67.

FNV opened at $76.75 on Thursday. The stock has a market capitalization of $14.36 billion, a PE ratio of 71.06, a price-to-earnings-growth ratio of 14.96 and a beta of 0.13. Franco Nevada has a twelve month low of $58.26 and a twelve month high of $78.82.

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, March 28th. Investors of record on Thursday, March 14th will be paid a dividend of $0.24 per share. The ex-dividend date is Wednesday, March 13th. This represents a $0.96 annualized dividend and a yield of 1.25%. Franco Nevada’s dividend payout ratio is currently 88.89%.

A number of large investors have recently modified their holdings of FNV. Stratos Wealth Partners LTD. bought a new stake in Franco Nevada during the third quarter valued at approximately $146,000. American Century Companies Inc. lifted its position in Franco Nevada by 9.8% during the third quarter. American Century Companies Inc. now owns 434,393 shares of the basic materials company’s stock valued at $27,172,000 after purchasing an additional 38,700 shares during the last quarter. Commonwealth Equity Services LLC lifted its position in Franco Nevada by 3.5% during the third quarter. Commonwealth Equity Services LLC now owns 102,023 shares of the basic materials company’s stock valued at $6,381,000 after purchasing an additional 3,461 shares during the last quarter. JPMorgan Chase & Co. lifted its position in Franco Nevada by 143.8% during the third quarter. JPMorgan Chase & Co. now owns 1,854,956 shares of the basic materials company’s stock valued at $116,027,000 after purchasing an additional 1,094,236 shares during the last quarter. Finally, Alliancebernstein L.P. lifted its position in Franco Nevada by 8.8% during the third quarter. Alliancebernstein L.P. now owns 69,266 shares of the basic materials company’s stock valued at $4,333,000 after purchasing an additional 5,617 shares during the last quarter. 66.47% of the stock is owned by institutional investors.

About Franco Nevada

Franco-Nevada Corporation operates as a gold-focused royalty and stream company in the United States, Canada, Mexico, Peru, Chile, Australia, and Africa. The company also holds interests in silver, platinum group metals, oil and gas, and other resource assets. As of December 31, 2017, it had a portfolio of 341 assets.

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