Franco-Nevada (NYSE:FNV) Sets New 12-Month High – Here’s Why

Franco-Nevada Corporation (NYSE:FNV) (TSE:FNV)’s share price reached a new 52-week high during mid-day trading on Monday . The stock traded as high as $285.67 and last traded at $276.9580, with a volume of 121813 shares. The stock had previously closed at $280.61.

Analyst Upgrades and Downgrades

Several brokerages recently issued reports on FNV. Zacks Research downgraded shares of Franco-Nevada from a “strong-buy” rating to a “hold” rating in a research note on Monday, December 8th. Scotiabank increased their price target on Franco-Nevada from $225.00 to $283.00 and gave the stock a “sector perform” rating in a research note on Monday, January 26th. Jefferies Financial Group reiterated a “hold” rating and issued a $228.00 target price on shares of Franco-Nevada in a research note on Sunday, December 7th. HC Wainwright increased their target price on Franco-Nevada from $210.00 to $285.00 and gave the stock a “buy” rating in a research report on Friday, February 13th. Finally, UBS Group restated a “buy” rating and issued a $310.00 price target on shares of Franco-Nevada in a report on Friday, January 30th. Seven analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $254.38.

Franco-Nevada Stock Down 1.9%

The stock has a fifty day moving average of $240.67 and a two-hundred day moving average of $214.01. The stock has a market cap of $53.05 billion, a price-to-earnings ratio of 57.75, a PEG ratio of 3.73 and a beta of 0.45.

Franco-Nevada Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, March 26th. Investors of record on Thursday, March 12th will be given a dividend of $0.44 per share. This is a boost from Franco-Nevada’s previous quarterly dividend of $0.38. The ex-dividend date of this dividend is Thursday, March 12th. This represents a $1.76 dividend on an annualized basis and a yield of 0.6%. Franco-Nevada’s dividend payout ratio is currently 31.87%.

Institutional Investors Weigh In On Franco-Nevada

Several institutional investors have recently bought and sold shares of the business. Norges Bank purchased a new position in shares of Franco-Nevada in the 2nd quarter valued at $460,218,000. First Eagle Investment Management LLC raised its position in Franco-Nevada by 26.5% in the fourth quarter. First Eagle Investment Management LLC now owns 5,123,444 shares of the basic materials company’s stock valued at $1,062,037,000 after purchasing an additional 1,074,257 shares during the period. Mackenzie Financial Corp raised its position in Franco-Nevada by 76.0% in the third quarter. Mackenzie Financial Corp now owns 2,363,324 shares of the basic materials company’s stock valued at $525,925,000 after purchasing an additional 1,020,509 shares during the period. Van ECK Associates Corp lifted its stake in shares of Franco-Nevada by 12.8% during the fourth quarter. Van ECK Associates Corp now owns 7,441,133 shares of the basic materials company’s stock worth $1,542,402,000 after purchasing an additional 842,132 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership boosted its position in shares of Franco-Nevada by 35.2% in the second quarter. Arrowstreet Capital Limited Partnership now owns 3,220,029 shares of the basic materials company’s stock worth $528,289,000 after buying an additional 838,853 shares during the period. 77.06% of the stock is currently owned by hedge funds and other institutional investors.

Franco-Nevada Company Profile

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.