M&T Bank’s shares have been downgraded from a hold rating to a sell rating by Wall Street Zen in a report released on January 16, 2024. This shift comes as analysts from various financial institutions revise their price targets for the stock, which trades on the New York Stock Exchange under the ticker symbol MTB.
While Wall Street Zen has adopted a more cautious stance, other analysts are taking a different approach. The Royal Bank of Canada has increased its price target for M&T Bank from $210.00 to $220.00 and has labeled the stock as “outperform.” This rating reflects a positive outlook amid the ongoing market fluctuations.
In contrast, Evercore ISI downgraded M&T Bank from an “outperform” rating to a “hold” rating on January 6, 2024, while also raising their price objective from $210.00 to $225.00. Meanwhile, Cantor Fitzgerald has raised its target price from $228.00 to $238.00 and assigned an “overweight” rating. Keefe, Bruyette & Woods also increased their price target from $220.00 to $230.00, giving the stock a “market perform” rating. Lastly, Piper Sandler adjusted its price target from $225.00 to $235.00 in their latest assessment.
The overall market sentiment appears mixed, with one analyst rating the stock as a Strong Buy, eight issuing Buy ratings, eleven providing Hold ratings, and one giving a Sell rating. According to data from MarketBeat.com, M&T Bank currently holds an average rating of “Hold” with an average price target of $224.29.
Earnings Performance and Dividend Announcement
M&T Bank released its quarterly earnings report on January 16, 2024, revealing a $4.72 earnings per share (EPS) for the quarter. This figure surpassed analysts’ consensus estimates of $4.47 by $0.25. The company reported revenues of $2.48 billion, slightly exceeding the consensus estimate of $2.47 billion. M&T Bank achieved a net margin of 21.55% and a return on equity of 10.94%. In the same quarter the previous year, the bank had reported an EPS of $3.77.
In addition to its earnings report, M&T Bank announced a quarterly dividend of $1.50, which was paid out on December 31, 2023. Shareholders of record as of December 1, 2023, received this dividend, which translates to an annualized dividend of $6.00, yielding 2.8%. The ex-dividend date was also December 1, 2023, and the company currently maintains a dividend payout ratio of 35.19%.
Insider Trading and Institutional Holdings
Recent insider trading activity at M&T Bank has also drawn attention. Director John P. Barnes sold 17,866 shares on January 22, 2024, at an average price of $220.81, resulting in a total transaction value of approximately $3.94 million. This sale was documented in a filing with the Securities and Exchange Commission (SEC).
Executive Vice President Christopher E. Kay also sold 5,250 shares on November 26, 2023, at an average price of $191.70, totaling around $1.01 million. Following this transaction, Kay retains 5,501 shares valued at approximately $1.05 million, marking a 48.83% reduction in his position. Over the past ninety days, insiders have sold a total of 29,116 shares valued at around $6.09 million, with insiders currently holding 0.53% of the company’s stock.
Institutional investors have also been active in adjusting their positions in M&T Bank. Golden State Wealth Management LLC significantly increased its holdings by 2,214.3% during the second quarter, now owning 162 shares valued at $31,000 after acquiring an additional 155 shares. Bank of Jackson Hole Trust raised its position by 342.9% in the third quarter, now holding 155 shares worth $31,000. Other firms, such as Triumph Capital Management and Twin Peaks Wealth Advisors LLC, have also initiated or increased their stakes in M&T Bank.
As of now, institutional investors and hedge funds collectively own 84.68% of M&T Bank’s stock.
M&T Bank Corporation, headquartered in Buffalo, New York, offers a wide range of banking and financial services to individuals, businesses, and institutions. The company operates a commercial and retail banking franchise that encompasses deposit-taking, lending, and payment services delivered through various channels. Its service area spans the northeastern and mid-Atlantic United States, further expanded through strategic acquisitions. Key business segments include commercial banking for middle-market and community businesses, consumer and retail banking, mortgage origination and servicing, as well as wealth management and trust services.
