Franco-Nevada (NYSE:FNV) Stock Falls 8.4% – Here’s What Happened

Franco-Nevada Corporation (NYSE:FNV) (TSE:FNV)’s share price traded down 8.4% during mid-day trading on Wednesday. The stock traded as low as $242.90 and last traded at $227.0930. Approximately 256,041 shares traded hands during trading, a decline of 69% from the average daily volume of 836,413 shares. The stock had previously closed at $247.94.

Analyst Ratings Changes

Several research analysts recently weighed in on the company. Royal Bank Of Canada increased their price objective on Franco-Nevada from $285.00 to $300.00 and gave the stock an “outperform” rating in a research report on Wednesday, September 16th. UBS Group decreased their price target on Franco-Nevada from $310.00 to $280.00 and set a “buy” rating on the stock in a research note on Tuesday, June 30th. Weiss Ratings reissued a “buy (b-)” rating on shares of Franco-Nevada in a research report on Friday, September 4th. Jefferies Financial Group reduced their price objective on shares of Franco-Nevada from $258.00 to $245.00 and set a “hold” rating on the stock in a report on Monday, July 6th. Finally, Bank of America decreased their target price on shares of Franco-Nevada from $276.00 to $238.00 and set a “neutral” rating on the stock in a research report on Thursday, July 9th. Eleven equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $274.90.

Franco-Nevada Stock Performance

The company has a market capitalization of $46.04 billion, a price-to-earnings ratio of 31.10, a P/E/G ratio of 2.27 and a beta of 0.39. The firm has a 50-day simple moving average of $247.67 and a two-hundred day simple moving average of $236.17.

Franco-Nevada (NYSE:FNV) (TSE:FNV) last posted its quarterly earnings data on Tuesday, August 11th. The basic materials company reported $1.81 EPS for the quarter, missing the consensus estimate of $1.95 by ($0.14). Franco-Nevada had a net margin of 63.79% and a return on equity of 18.58%. The business had revenue of $580.90 million during the quarter, compared to analysts’ expectations of $616.66 million. During the same period in the previous year, the business posted $1.24 EPS. The company’s revenue for the quarter was up 57.3% compared to the same quarter last year. As a group, equities analysts forecast that Franco-Nevada Corporation will post 7.54 EPS for the current fiscal year.

Franco-Nevada Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, September 24th. Stockholders of record on Thursday, September 10th were given a dividend of $0.44 per share. The ex-dividend date of this dividend was Thursday, September 10th. This represents a $1.76 dividend on an annualized basis and a dividend yield of 0.7%. Franco-Nevada’s dividend payout ratio is currently 23.01%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of FNV. Syon Capital LLC raised its holdings in shares of Franco-Nevada by 2.1% in the fourth quarter. Syon Capital LLC now owns 2,443 shares of the basic materials company’s stock valued at $506,000 after buying an additional 51 shares during the last quarter. PFG Investments LLC grew its holdings in shares of Franco-Nevada by 0.7% during the first quarter. PFG Investments LLC now owns 7,211 shares of the basic materials company’s stock worth $1,782,000 after buying an additional 52 shares during the last quarter. Parallel Advisors LLC grew its holdings in shares of Franco-Nevada by 2.1% during the first quarter. Parallel Advisors LLC now owns 2,605 shares of the basic materials company’s stock worth $644,000 after buying an additional 53 shares during the last quarter. Claret Asset Management Corp increased its position in Franco-Nevada by 3.4% in the 4th quarter. Claret Asset Management Corp now owns 1,669 shares of the basic materials company’s stock valued at $346,000 after acquiring an additional 55 shares during the period. Finally, Parvin Asset Management LLC increased its position in Franco-Nevada by 1.2% in the 4th quarter. Parvin Asset Management LLC now owns 4,965 shares of the basic materials company’s stock valued at $1,029,000 after acquiring an additional 60 shares during the period. 77.06% of the stock is owned by institutional investors and hedge funds.

Franco-Nevada Company Profile

Franco-Nevada Corporation (NYSE:FNV) is a gold-focused royalty and streaming company. Rather than operating mines directly, it provides capital to mining and natural resource companies in exchange for the right to receive a portion of future production or revenue. This business model gives Franco-Nevada exposure to commodity production while generally limiting its direct responsibility for operating and capital costs.

The company holds a diversified portfolio of royalties, streams and other interests tied primarily to gold, as well as silver, platinum-group metals, iron ore and other minerals.