M&T Bank Corporation (NYSE:MTB) Receives Consensus Recommendation of "Hold" from Analysts

Key Points

• M&T Bank has a consensus analyst rating of “Hold” from 21 research firms, with 8 buys, 12 holds, and 1 sell. The average 12-month price target is about $235.32.
• The bank reported better-than-expected first-quarter results, posting EPS of $4.18 versus estimates of $4.02 and revenue of $2.44 billion versus $2.43 billion expected. Analysts now expect full-year EPS of 18.69.
• M&T Bank announced a $5 billion share repurchase program and a quarterly dividend of $1.50 per share, equal to an annualized yield of 2.8%. The buyback and dividend signal ongoing capital returns to shareholders.

M&T Bank Corporation (NYSE:MTB - Get Free Report) has received an average rating of "Hold" from the twenty-one research firms that are presently covering the firm, Marketbeat.com reports. One investment analyst has rated the stock with a sell recommendation, twelve have given a hold recommendation and eight have given a buy recommendation to the company. The average 12 month price objective among brokers that have issued a report on the stock in the last year is $235.3158.

Several equities research analysts have issued reports on MTB shares. Cantor Fitzgerald dropped their target price on M&T Bank from $255.00 to $253.00 and set an "overweight" rating on the stock in a research report on Friday, April 17th. UBS Group set a $235.00 target price on M&T Bank in a research report on Thursday, April 16th. DA Davidson increased their target price on M&T Bank from $233.00 to $235.00 and gave the stock a "neutral" rating in a research report on Thursday, April 16th. Argus increased their price objective on M&T Bank from $230.00 to $245.00 and gave the stock a "buy" rating in a research report on Friday, April 17th. Finally, The Goldman Sachs Group increased their price objective on M&T Bank from $231.00 to $235.00 and gave the stock a "neutral" rating in a research report on Monday, April 6th.

M&T Bank Trading Up 2.8%

NYSE:MTB opened at $217.50 on Wednesday. The company has a market cap of $31.85 billion, a P/E ratio of 12.18, a P/E/G ratio of 1.07 and a beta of 0.57. The stock's fifty day moving average price is $212.37 and its two-hundred day moving average price is $210.15. M&T Bank has a 1 year low of $174.76 and a 1 year high of $239.00. The company has a debt-to-equity ratio of 0.44, a current ratio of 0.94 and a quick ratio of 0.94.

M&T Bank (NYSE:MTB - Get Free Report) last posted its earnings results on Wednesday, April 15th. The financial services provider reported $4.18 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.02 by $0.16. The firm had revenue of $2.44 billion for the quarter, compared to the consensus estimate of $2.43 billion. M&T Bank had a return on equity of 11.35% and a net margin of 22.07%.During the same quarter in the prior year, the business posted $3.32 earnings per share. As a group, analysts expect that M&T Bank will post 18.69 EPS for the current year.

M&T Bank announced that its Board of Directors has initiated a share buyback program on Tuesday, March 31st that allows the company to repurchase $5.00 billion in outstanding shares. This repurchase authorization allows the financial services provider to buy up to 16.7% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company's board believes its stock is undervalued.

M&T Bank Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 30th. Investors of record on Monday, June 1st will be given a $1.50 dividend. This represents a $6.00 dividend on an annualized basis and a dividend yield of 2.8%. The ex-dividend date is Monday, June 1st. M&T Bank's dividend payout ratio (DPR) is 33.59%.

Insider Activity

In related news, EVP Christopher E. Kay sold 3,105 shares of the stock in a transaction on Thursday, May 7th. The stock was sold at an average price of $216.50, for a total value of $672,232.50. Following the sale, the executive vice president owned 6,753 shares in the company, valued at approximately $1,462,024.50. This trade represents a 31.50% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Company insiders own 0.44% of the company's stock.

Institutional Investors Weigh In On M&T Bank

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Commonwealth Retirement Investments LLC raised its position in shares of M&T Bank by 0.4% in the fourth quarter. Commonwealth Retirement Investments LLC now owns 10,991 shares of the financial services provider's stock worth $2,214,000 after buying an additional 44 shares in the last quarter. Ransom Advisory Ltd raised its position in shares of M&T Bank by 2.0% in the fourth quarter. Ransom Advisory Ltd now owns 2,513 shares of the financial services provider's stock worth $506,000 after buying an additional 50 shares in the last quarter. Wedbush Securities Inc. raised its position in shares of M&T Bank by 2.4% in the fourth quarter. Wedbush Securities Inc. now owns 2,223 shares of the financial services provider's stock worth $448,000 after buying an additional 52 shares in the last quarter. Bank of Jackson Hole Trust increased its stake in M&T Bank by 38.7% in the fourth quarter. Bank of Jackson Hole Trust now owns 215 shares of the financial services provider's stock valued at $43,000 after acquiring an additional 60 shares during the last quarter. Finally, Thoroughbred Financial Services LLC increased its stake in M&T Bank by 2.1% in the fourth quarter. Thoroughbred Financial Services LLC now owns 3,465 shares of the financial services provider's stock valued at $698,000 after acquiring an additional 70 shares during the last quarter. Hedge funds and other institutional investors own 84.68% of the company's stock.

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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