Capital Research Global Investors Boosts Stake in Franco-Nevada Corporation $FNV

Capital Research Global Investors increased its position in Franco-Nevada Corporation (NYSE:FNV) (TSE:FNV) by 100.2% during the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 1,277,889 shares of the basic materials company’s stock after buying an additional 639,493 shares during the period. Capital Research Global Investors’ holdings in Franco-Nevada were worth $264,882,000 at the end of the most recent quarter.

Other hedge funds also recently made changes to their positions in the company. GAMMA Investing LLC lifted its position in shares of Franco-Nevada by 112.3% in the fourth quarter. GAMMA Investing LLC now owns 121 shares of the basic materials company’s stock worth $25,000 after buying an additional 64 shares in the last quarter. Burkett Financial Services LLC purchased a new stake in shares of Franco-Nevada in the third quarter worth about $28,000. Private Trust Co. NA purchased a new stake in shares of Franco-Nevada in the fourth quarter worth about $29,000. Navalign LLC purchased a new stake in shares of Franco-Nevada in the fourth quarter worth about $34,000. Finally, Stephens Consulting LLC purchased a new stake in shares of Franco-Nevada in the fourth quarter worth about $36,000. 77.06% of the stock is currently owned by hedge funds and other institutional investors.

Franco-Nevada Price Performance

Shares of FNV stock opened at $218.43 on Monday. Franco-Nevada Corporation has a 1 year low of $152.89 and a 1 year high of $285.67. The stock’s 50 day simple moving average is $239.79 and its two-hundred day simple moving average is $235.55. The company has a market cap of $42.13 billion, a PE ratio of 30.76, a price-to-earnings-growth ratio of 1.91 and a beta of 0.34.

Franco-Nevada (NYSE:FNV) (TSE:FNV) last issued its quarterly earnings data on Tuesday, May 12th. The basic materials company reported $2.38 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.09 by $0.29. Franco-Nevada had a return on equity of 18.10% and a net margin of 65.12%.The business had revenue of $650.70 million for the quarter, compared to the consensus estimate of $634.43 million. During the same period in the prior year, the business posted $1.07 earnings per share. The company’s quarterly revenue was up 76.6% compared to the same quarter last year. Equities research analysts expect that Franco-Nevada Corporation will post 8.85 EPS for the current year.

Franco-Nevada Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, June 25th. Stockholders of record on Thursday, June 11th will be issued a $0.44 dividend. This represents a $1.76 annualized dividend and a dividend yield of 0.8%. The ex-dividend date is Thursday, June 11th. Franco-Nevada’s dividend payout ratio is presently 24.79%.

Analysts Set New Price Targets

A number of equities research analysts recently commented on FNV shares. TD Cowen upgraded Franco-Nevada from a “hold” rating to a “buy” rating and decreased their target price for the stock from $292.00 to $291.00 in a research report on Wednesday, May 20th. Wall Street Zen downgraded Franco-Nevada from a “buy” rating to a “hold” rating in a research report on Monday, June 1st. National Bank Financial upgraded Franco-Nevada from a “sector perform” rating to an “outperform” rating in a research report on Wednesday, May 13th. Canaccord Genuity Group upgraded Franco-Nevada from a “hold” rating to a “buy” rating in a research report on Wednesday, April 29th. Finally, HC Wainwright restated a “buy” rating and set a $305.00 price objective on shares of Franco-Nevada in a research report on Wednesday, May 13th. Eleven investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $271.00.

Franco-Nevada 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.