Manulife Financial Corp (NYSE:MFC) Receives Consensus Recommendation of "Buy" from Brokerages

Key Points

• Analysts maintain a bullish view: Eight brokerages give Manulife Financial an average “Buy” rating, with a consensus 12-month price target of $59.00.
• Manulife reported quarterly EPS of $0.79, slightly exceeding the $0.78 analyst estimate, while revenue increased 7.3% year over year. The company also declared a quarterly dividend of $0.485, representing a 4.5% annualized yield.
• Institutional ownership is substantial: Institutional investors hold 52.56% of the company, with several major funds—including Norges Bank and the Bank of Nova Scotia—recently establishing or increasing positions.

Shares of Manulife Financial Corp (NYSE:MFC - Get Free Report) TSE: MFC have received an average rating of "Buy" from the eight brokerages that are covering the company, Marketbeat.com reports. One investment analyst has rated the stock with a hold recommendation, five have assigned a buy recommendation and two have assigned a strong buy recommendation to the company. The average 12 month target price among brokerages that have covered the stock in the last year is $59.00.

MFC has been the topic of several research reports. BMO Capital Markets reissued an "outperform" rating on shares of Manulife Financial in a research report on Friday, August 7th. Zacks Research raised shares of Manulife Financial from a "strong sell" rating to a "hold" rating in a research report on Wednesday, September 2nd. Scotiabank reiterated an "outperform" rating on shares of Manulife Financial in a research note on Friday, August 7th. Royal Bank Of Canada increased their price objective on shares of Manulife Financial from $55.00 to $67.00 and gave the stock an "outperform" rating in a research note on Friday, August 7th. Finally, Weiss Ratings raised shares of Manulife Financial from a "buy (a-)" rating to a "buy (a)" rating in a report on Wednesday, August 19th.

Manulife Financial Price Performance

Shares of NYSE:MFC opened at $43.55 on Tuesday. The company has a market cap of $72.26 billion, a P/E ratio of 16.25 and a beta of 0.83. Manulife Financial has a 1 year low of $30.52 and a 1 year high of $45.33. The stock's fifty day moving average price is $43.35 and its 200-day moving average price is $39.61.

Manulife Financial (NYSE:MFC - Get Free Report) TSE: MFC last issued its earnings results on Wednesday, August 5th. The financial services provider reported $0.79 earnings per share for the quarter, topping analysts' consensus estimates of $0.78 by $0.01. The business had revenue of $2.22 billion during the quarter, compared to analyst estimates of $7.28 billion. Manulife Financial had a return on equity of 16.68% and a net margin of 9.99%.Manulife Financial's revenue was up 7.3% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.95 EPS. On average, sell-side analysts anticipate that Manulife Financial will post 3 earnings per share for the current year.

Manulife Financial Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, September 21st. Shareholders of record on Friday, August 21st will be given a $0.485 dividend. The ex-dividend date is Friday, August 21st. This represents a $1.94 annualized dividend and a yield of 4.5%. Manulife Financial's dividend payout ratio (DPR) is presently 51.49%.

Institutional Investors Weigh In On Manulife Financial

A number of hedge funds have recently modified their holdings of MFC. Norges Bank bought a new stake in Manulife Financial in the fourth quarter worth $777,229,000. Bank of Nova Scotia purchased a new stake in Manulife Financial during the second quarter valued at $594,832,000. Canada Pension Plan Investment Board bought a new position in Manulife Financial during the second quarter valued at $495,841,000. Legal & General Group Plc purchased a new position in shares of Manulife Financial in the 2nd quarter worth $430,039,000. Finally, Healthcare of Ontario Pension Plan Trust Fund grew its stake in shares of Manulife Financial by 183.7% in the 1st quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 11,702,230 shares of the financial services provider's stock worth $402,969,000 after buying an additional 7,577,711 shares in the last quarter. Institutional investors own 52.56% of the company's stock.

About Manulife Financial

Manulife Financial Corporation is a Canada-based financial services company that provides insurance, wealth management and asset management products to individuals, businesses and institutional clients. Its offerings include life and health insurance, retirement solutions, investment products, group benefits and long-term care coverage.

Manulife serves customers primarily in Canada, the United States and Asia. In the United States, its insurance and retirement businesses operate under the John Hancock brand.

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