Manulife Financial Sees 7.8% Share Increase After Positive Earnings Report

Manulife Financial Co. (NYSE:MFC – Get Free Report) (TSE:MFC) experienced a notable increase in its stock value, rising 7.8% in mid-day trading on Thursday. This surge followed the announcement of the company’s quarterly earnings, which surpassed expectations. The stock peaked at $32.05 before settling at $32.10. During this period, around 687,765 shares changed hands, marking a 64% drop compared to the average daily trading volume of 1,933,674 shares. Prior to the announcement, the stock had closed at $29.78.

The financial services firm reported earnings of $0.74 per share (EPS) for the quarter, exceeding analyst predictions of $0.67 by a margin of $0.07. Additionally, Manulife Financial disclosed quarterly revenue of $9.31 billion, reflecting a strong return on equity of 16.15% and a net margin of 10.08%.

Dividend Increase Announced

In a positive development for investors, the company also announced an increase in its quarterly dividend. The new dividend, amounting to $0.3094 per share, is set to be paid on Wednesday, March 19th, to shareholders on record as of March 5th. This raises the annualized dividend to $1.24, giving a yield of 4.08%. The ex-dividend date for this payment is the same as the record date. This increase reflects a positive shift from the previous dividend of $0.30, with a dividend payout ratio (DPR) of 59.42% now established.

Updates on Analyst Ratings

In analyst news, the Royal Bank of Canada raised their price target on Manulife Financial shares from $49.00 to $51.00, assigning an “outperform” rating in a recent report. Currently, one analyst has assigned a hold rating, while four favor a buy rating and one gives a strong buy rating. According to data from MarketBeat.com, the average analyst rating is “Buy” and the average price target stands at $45.50.

Institutional Investors Take Positions

Recent movements among institutional investors show significant activity regarding Manulife Financial shares. Norges Bank established a new stake in the company, valued at approximately $654,751,000 during the fourth quarter. Similarly, FIL Ltd increased its holdings by 21.7% in the same quarter, now owning 39,610,614 shares valued at $1,216,880,000 after adding 7,053,066 shares. National Bank of Canada FI also raised its position by 13.5%, now holding 28,063,936 shares worth approximately $829,374,000 after acquiring an additional 3,329,892 shares.

Moreover, Geode Capital Management LLC boosted its shareholding by 28.7% during the fourth quarter, resulting in ownership of 10,650,598 shares at a value of $333,291,000 after an additional purchase of 2,377,338 shares. Lastly, the Canada Pension Plan Investment Board raised its stake by 42.1%, bringing its total shares to 7,427,745, valued at $227,895,000. It's noteworthy that institutional investors now hold 52.56% of Manulife Financial's total stock.

Market Overview for Manulife Financial

As for the technical aspects, Manulife Financial's 50-day moving average is reported at $30.32, whereas the two-hundred-day moving average stands at $29.75. The company boasts a market capitalization of $52.32 billion, with a price-to-earnings (P/E) ratio of 14.67 and a P/E to growth (P/E/G) ratio of 1.04, along with a beta value of 1.09.

Insight into Manulife Financial Corporation

Manulife Financial Corporation operates alongside its subsidiaries, delivering a range of financial products and services across the United States, Canada, Asia, and globally. The company's operations are divided into Wealth and Asset Management Businesses, Insurance and Annuity Products, and Corporate and Other segments. The Wealth and Asset Management Businesses segment provides investment advice and solutions to retirement, retail, and institutional clients via diversified distribution methods, including agents, independent brokers, financial advisors, and banks.

Manulife, Earnings, Dividends