Franco-Nevada (NYSE:FNV) Shares Gap Down After Earnings Miss

Franco-Nevada Co. (NYSE:FNV) (TSE:FNV) shares gapped down prior to trading on Wednesday following a dissappointing earnings announcement. The stock had previously closed at $124.97, but opened at $117.74. Franco-Nevada shares last traded at $117.92, with a volume of 85,473 shares changing hands.

The basic materials company reported $0.75 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.78 by ($0.03). Franco-Nevada had a negative net margin of 39.88% and a positive return on equity of 10.81%. The firm had revenue of $260.10 million during the quarter, compared to analyst estimates of $277.44 million. During the same period in the previous year, the company earned $0.95 earnings per share. Franco-Nevada’s revenue was down 21.2% on a year-over-year basis.

Wall Street Analysts Forecast Growth

FNV has been the subject of a number of research reports. Jefferies Financial Group lifted their target price on Franco-Nevada from $129.00 to $133.00 and gave the stock a “hold” rating in a report on Friday, July 12th. Scotiabank lifted their price objective on shares of Franco-Nevada from $140.00 to $141.00 and gave the company a “sector perform” rating in a research note on Thursday, May 23rd. Bank of America increased their price objective on shares of Franco-Nevada from $141.00 to $142.00 and gave the stock a “buy” rating in a research note on Wednesday, June 26th. Finally, HC Wainwright boosted their target price on shares of Franco-Nevada from $175.00 to $185.00 and gave the company a “buy” rating in a research report on Monday, May 6th. Six investment analysts have rated the stock with a hold rating and five have issued a buy rating to the company. According to data from MarketBeat.com, Franco-Nevada has a consensus rating of “Hold” and an average price target of $152.33.

Institutional Trading of Franco-Nevada

A number of hedge funds have recently added to or reduced their stakes in FNV. Allspring Global Investments Holdings LLC purchased a new position in Franco-Nevada in the second quarter valued at $276,446,000. Norges Bank purchased a new position in shares of Franco-Nevada in the 4th quarter valued at about $221,351,000. M&G Plc acquired a new position in Franco-Nevada in the 1st quarter worth about $219,971,000. Capital World Investors boosted its position in Franco-Nevada by 45.8% during the fourth quarter. Capital World Investors now owns 4,477,105 shares of the basic materials company’s stock worth $495,909,000 after purchasing an additional 1,405,731 shares in the last quarter. Finally, EdgePoint Investment Group Inc. grew its holdings in Franco-Nevada by 68.1% in the first quarter. EdgePoint Investment Group Inc. now owns 2,759,677 shares of the basic materials company’s stock valued at $328,972,000 after purchasing an additional 1,117,523 shares during the period. 77.06% of the stock is owned by hedge funds and other institutional investors.

Franco-Nevada Stock Down 5.4 %

The firm has a market capitalization of $22.76 billion, a PE ratio of -50.22, a PEG ratio of 21.14 and a beta of 0.74. The stock has a 50-day moving average price of $122.13 and a 200 day moving average price of $118.70.

About Franco-Nevada

Franco-Nevada Corporation operates as a gold-focused royalty and streaming company in South America, Central America, Mexico, the United States, Canada, and internationally. It operates through Mining and Energy segments. The company manages its portfolio with a focus on precious metals, such as gold, silver, and platinum group metals; and engages in the sale of crude oil, natural gas, and natural gas liquids through a third-party marketing agent.