Manulife Financial (NYSE:MFC) Shares Up 7.8% Following Strong Earnings

Manulife Financial Co. (NYSE:MFC - Get Free Report) TSE: MFC was up 7.8% during trading on Thursday following a stronger than expected earnings report. The company traded as high as $32.05 and last traded at $32.10. Approximately 687,765 shares were traded during trading, a decline of 64% from the average daily volume of 1,933,674 shares. The stock had previously closed at $29.78.

The financial services provider reported $0.74 EPS for the quarter, topping the consensus estimate of $0.67 by $0.07. The company had revenue of $9.31 billion during the quarter. Manulife Financial had a return on equity of 16.15% and a net margin of 10.08%.

Manulife Financial Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, March 19th. Stockholders of record on Wednesday, March 5th will be given a $0.3094 dividend. This is a positive change from Manulife Financial's previous quarterly dividend of $0.30. The ex-dividend date of this dividend is Wednesday, March 5th. This represents a $1.24 annualized dividend and a dividend yield of 4.08%. Manulife Financial's dividend payout ratio (DPR) is presently 59.42%.

Wall Street Analyst Weigh In

Separately, Royal Bank of Canada lifted their target price on Manulife Financial from $49.00 to $51.00 and gave the stock an "outperform" rating in a research report on Friday. One research analyst has rated the stock with a hold rating, four have given a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Buy" and an average target price of $45.50.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in MFC. Norges Bank acquired a new position in Manulife Financial during the 4th quarter valued at approximately $654,751,000. FIL Ltd boosted its position in Manulife Financial by 21.7% during the 4th quarter. FIL Ltd now owns 39,610,614 shares of the financial services provider's stock valued at $1,216,880,000 after purchasing an additional 7,053,066 shares during the period. National Bank of Canada FI boosted its position in Manulife Financial by 13.5% during the 3rd quarter. National Bank of Canada FI now owns 28,063,936 shares of the financial services provider's stock valued at $829,374,000 after purchasing an additional 3,329,892 shares during the period. Geode Capital Management LLC raised its stake in Manulife Financial by 28.7% during the 4th quarter. Geode Capital Management LLC now owns 10,650,598 shares of the financial services provider's stock valued at $333,291,000 after acquiring an additional 2,377,338 shares in the last quarter. Finally, Canada Pension Plan Investment Board raised its stake in Manulife Financial by 42.1% during the 4th quarter. Canada Pension Plan Investment Board now owns 7,427,745 shares of the financial services provider's stock valued at $227,895,000 after acquiring an additional 2,200,000 shares in the last quarter. Institutional investors and hedge funds own 52.56% of the company's stock.

Manulife Financial Stock Performance

The firm has a 50 day simple moving average of $30.32 and a two-hundred day simple moving average of $29.75. The stock has a market cap of $52.32 billion, a P/E ratio of 14.67, a P/E/G ratio of 1.04 and a beta of 1.09.

About Manulife Financial

Manulife Financial Corporation, together with its subsidiaries, provides financial products and services in the United States, Canada, Asia, and internationally. The company operates through Wealth and Asset Management Businesses; Insurance and Annuity Products; and Corporate and Other segments. The Wealth and Asset Management Businesses segment offers investment advice and solutions to retirement, retail, and institutional clients through multiple distribution channels, including agents and brokers affiliated with the company, independent securities brokerage firms and financial advisors pension plan consultants, and banks.