Prepare Yourself for Liftoff: Manulife Financial Corporation (MFC)

Manulife Financial Corporation (NYSE: MFC) stock fell -2.09% on Friday to $16.39 against a previous-day closing price of $16.74. With 3.56 million shares changed hands, the volume of the stock remained heavier than its average volume of 3.15 million shares. During the session, the Insurance – Life company that operates in wider Financial sector, reached to the highest price of $16.82 whereas the lowest price it dropped to was $16.36. The 52-week range on MFC shows that it touched its highest point at $22.19 and its lowest point at $16.27 during that stretch. It currently has a 1-year price target of $19.88. With its current market cap of 31.49 billion, MFC has annualized dividend of $1.01 while the current yield stands at 6.17%. Beta for the stock currently stands at 1.15.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of MFC was down-trending over the past week, with a drop of -5.15%, but this was down by -8.74% over a month. Three-month performance dropped to -0.79% while six-month performance fell -21.20%. The stock lost -12.54% in the past year, while it has lost -14.05% so far this year. A look at the trailing 12-month EPS for MFC yields 2.92 with Next year EPS estimates of 3.37. For the next quarter, that number is 0.81. This implies an EPS growth rate of 20.70% for this year and 5.32% for next year. EPS is expected to grow by 8.60% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 20.10%.

Float and Shares Shorts:

At present, 1.92 billion MFC shares are outstanding with a float of 1.90 billion shares on hand for trading. On Jul 14, 2022, short shares totaled 21.11 million, which was 1.10% higher than short shares on Jun 14, 2022. In addition to Mr. Rocco Gori as the firm’s Pres, CEO & Director, Mr. Philip James Witherington serves as its Chief Financial Officer.

Institutional Ownership:

Through their ownership of 54.67% of MFC’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 31.22% of MFC, in contrast to 16.90% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in MFC with 6.39% of the stake, RBC Global Asset Management, Inc. holds 123,051,851 shares worth 123,051,851. A second-largest stockholder of MFC, 1832 Asset Management LP, holds 56,177,740 shares, controlling over 2.92% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in MFC, holding 45,055,796 shares or 2.34% stake. With a 1.32% stake in MFC, the Vanguard Total International Stoc is the largest stakeholder. A total of 25,489,691 shares are owned by the mutual fund manager. The Government Pension Fund – Global, which owns about 0.97% of MFC stock, is the second-largest Mutual Fund holder. It holds 18,566,176 shares valued at 321.01 million. American Funds Income Fund of Ame holds 0.92% of the stake in MFC, owning 17,661,400 shares worth 305.37 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for MFC since 16 analysts follow the stock currently. There are 3 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 8 believe that the stock is worth HOLDING, 4 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With MFC analysts setting a high price target of $24.32 and a low target of $18.05, the average target price over the next 12 months is $21.05. Based on these targets, MFC could surge 48.38% to reach the target high and rise by 10.13% to reach the target low. Reaching the average price target will result in a growth of 28.43% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. MFC will report FY 2022 earnings on 02/15/2023. Analysts have provided yearly estimates in a range of $2.68 being high and $2.38 being low. For MFC, this leads to a yearly average estimate of $2.50. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Manulife Financial Corporation surprised analysts by $0.03 when it reported $0.61 EPS against a consensus estimate of $0.59. The surprise factor in the prior quarter was -$0.06. Based on analyst estimates, the high estimate for the next quarter is $0.70 and the low estimate is $0.60. The average estimate for the next quarter is thus $0.63.

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