Jefferies Financial Group Forecasts Strong Price Appreciation for M&T Bank (NYSE:MTB) Stock

Key Points

• Jefferies Financial Group raised its price target on M&T Bank to $255 (from $250) and kept a "buy" rating, implying roughly a 16.5% upside from current levels.
• M&T's board authorized a $5.0 billion share repurchase program (up to 16.7% of shares outstanding), signaling management believes the stock may be undervalued.
• In the latest quarter M&T reported EPS of $4.72 (beating estimates) but missed on revenue ($1.79B vs. $2.47B); the stock trades near $218.82 while analysts have a consensus "Hold" with an average target of $230.24.

M&T Bank (NYSE:MTB - Get Free Report) had its price target boosted by equities researchers at Jefferies Financial Group from $250.00 to $255.00 in a research note issued on Wednesday,MarketScreener reports. The brokerage presently has a "buy" rating on the financial services provider's stock. Jefferies Financial Group's target price points to a potential upside of 16.54% from the company's current price.

A number of other analysts have also recently weighed in on MTB. UBS Group increased their price objective on M&T Bank from $217.00 to $230.00 and gave the stock a "neutral" rating in a research report on Wednesday, February 4th. Cantor Fitzgerald increased their price target on shares of M&T Bank from $238.00 to $255.00 and gave the stock an "overweight" rating in a report on Tuesday, March 3rd. The Goldman Sachs Group boosted their target price on M&T Bank from $231.00 to $235.00 and gave the stock a "neutral" rating in a research report on Monday. Keefe, Bruyette & Woods increased their price objective on M&T Bank from $220.00 to $230.00 and gave the stock a "market perform" rating in a research report on Wednesday, December 17th. Finally, Wells Fargo & Company boosted their target price on shares of M&T Bank from $185.00 to $205.00 and gave the stock an "underweight" rating in a research report on Monday, January 5th. One research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, twelve have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of "Hold" and an average price target of $230.24.

M&T Bank Stock Performance

MTB traded up $6.80 during trading on Wednesday, hitting $218.82. 23,739 shares of the stock were exchanged, compared to its average volume of 1,266,698. The firm has a market capitalization of $32.60 billion, a P/E ratio of 12.83, a PEG ratio of 1.00 and a beta of 0.60. M&T Bank has a 1-year low of $152.66 and a 1-year high of $239.00. The stock has a fifty day moving average price of $216.07 and a two-hundred day moving average price of $203.12. The company has a quick ratio of 0.96, a current ratio of 0.96 and a debt-to-equity ratio of 0.41.

M&T Bank (NYSE:MTB - Get Free Report) last announced its earnings results on Friday, January 16th. The financial services provider reported $4.72 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $4.47 by $0.25. The business had revenue of $1.79 billion for the quarter, compared to analyst estimates of $2.47 billion. M&T Bank had a net margin of 21.55% and a return on equity of 10.94%. During the same period last year, the firm posted $3.77 earnings per share. As a group, sell-side analysts predict that M&T Bank will post 16.57 earnings per share for the current year.

M&T Bank declared that its board has authorized a share repurchase plan on Tuesday, March 31st that permits the company to repurchase $5.00 billion in shares. This repurchase authorization permits the financial services provider to reacquire up to 16.7% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company's board of directors believes its stock is undervalued.

Insider Activity

In other M&T Bank news, Director John P. Barnes sold 21,193 shares of M&T Bank stock in a transaction dated Monday, February 9th. The stock was sold at an average price of $235.85, for a total value of $4,998,369.05. Following the completion of the sale, the director owned 15,142 shares in the company, valued at $3,571,240.70. The trade was a 58.33% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Vice Chairman Gary N. Geisel sold 887 shares of the company's stock in a transaction dated Wednesday, January 28th. The shares were sold at an average price of $215.79, for a total transaction of $191,405.73. Following the transaction, the insider directly owned 16,446 shares of the company's stock, valued at approximately $3,548,882.34. This represents a 5.12% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 49,092 shares of company stock valued at $11,182,250 over the last quarter. Insiders own 0.44% of the company's stock.

Institutional Trading of M&T Bank

A number of institutional investors and hedge funds have recently made changes to their positions in the company. Canoe Financial LP raised its holdings in shares of M&T Bank by 50.5% in the 4th quarter. Canoe Financial LP now owns 652,744 shares of the financial services provider's stock worth $131,515,000 after purchasing an additional 219,065 shares during the period. Miller Howard Investments Inc. NY purchased a new stake in shares of M&T Bank during the 4th quarter worth about $42,817,000. Danske Bank A S purchased a new stake in shares of M&T Bank during the 3rd quarter worth about $29,612,000. Russell Investments Group Ltd. increased its position in M&T Bank by 94.9% during the 3rd quarter. Russell Investments Group Ltd. now owns 292,839 shares of the financial services provider's stock worth $57,879,000 after purchasing an additional 142,593 shares in the last quarter. Finally, Munich Reinsurance Co Stock Corp in Munich raised its holdings in M&T Bank by 37.1% in the fourth quarter. Munich Reinsurance Co Stock Corp in Munich now owns 351,076 shares of the financial services provider's stock valued at $71,462,000 after buying an additional 95,025 shares during the period. 84.68% of the stock is currently owned by institutional investors and hedge funds.

About M&T Bank

M&T Bank Corporation is a bank holding company headquartered in Buffalo, New York, that provides a broad range of banking and financial services to individuals, businesses and institutions. The company operates a commercial and retail banking franchise that includes deposit-taking, lending, and payment services delivered through branch networks, digital channels and commercial banking teams. M&T serves customers across the northeastern and mid‑Atlantic United States and has expanded its geographic footprint through strategic acquisitions.

Its core businesses include commercial banking for middle‑market and community businesses, consumer and retail banking, mortgage origination and servicing, treasury and cash management, and wealth management and trust services.

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