Arrowstreet Capital Limited Partnership Reduces Stock Position in Franco-Nevada Corporation $FNV

Arrowstreet Capital Limited Partnership lowered its stake in Franco-Nevada Corporation (NYSE:FNV) (TSE:FNV) by 14.9% during the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 2,365,197 shares of the basic materials company’s stock after selling 412,521 shares during the quarter. Arrowstreet Capital Limited Partnership owned 1.23% of Franco-Nevada worth $490,268,000 at the end of the most recent quarter.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. GAMMA Investing LLC boosted its holdings in 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 purchasing an additional 64 shares during the last quarter. Transamerica Financial Advisors LLC purchased a new stake in Franco-Nevada in the fourth quarter worth approximately $25,000. Burkett Financial Services LLC purchased a new stake in Franco-Nevada in the third quarter worth approximately $28,000. Private Trust Co. NA purchased a new stake in Franco-Nevada in the fourth quarter worth approximately $29,000. Finally, Navalign LLC purchased a new stake in Franco-Nevada in the fourth quarter worth approximately $34,000. Hedge funds and other institutional investors own 77.06% of the company’s stock.

Franco-Nevada Price Performance

Shares of Franco-Nevada stock opened at $209.68 on Friday. The company’s fifty day simple moving average is $236.90 and its 200-day simple moving average is $235.86. The stock has a market capitalization of $40.44 billion, a PE ratio of 29.53, a P/E/G ratio of 1.82 and a beta of 0.34. Franco-Nevada Corporation has a 1-year low of $152.89 and a 1-year high of $285.67.

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

Franco-Nevada Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, June 25th. Investors of record on Thursday, June 11th will be paid a dividend of $0.44 per share. The ex-dividend date is Thursday, June 11th. This represents a $1.76 dividend on an annualized basis and a dividend yield of 0.8%. Franco-Nevada’s payout ratio is 24.79%.

Analysts Set New Price Targets

Several brokerages have recently weighed in on FNV. Zacks Research cut shares of Franco-Nevada from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, March 31st. Wall Street Zen cut shares of Franco-Nevada from a “buy” rating to a “hold” rating in a research note on Monday, June 1st. TD Securities upgraded shares of Franco-Nevada from a “hold” rating to a “buy” rating and set a $291.00 price target on the stock in a research note on Wednesday, May 20th. National Bank Financial upgraded shares of Franco-Nevada from a “sector perform” rating to an “outperform” rating in a research note on Wednesday, May 13th. Finally, TD upgraded shares of Franco-Nevada from a “hold” rating to a “buy” rating and dropped their price target for the stock from $292.00 to $291.00 in a research note on Wednesday, May 20th. Eleven equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $271.00.

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.