M&T Bank (NYSE:MTB) Posts Quarterly Earnings Results, Beats Expectations By $0.12 EPS

Key Points

• M&T Bank beat expectations with quarterly EPS of $4.13 versus the $4.01 consensus (up from $3.32 a year earlier); return on equity was 10.94% and net margin 21.55%.
• The board authorized a $5.0 billion share buyback, permitting repurchases of about 16.7% of outstanding shares, suggesting management believes the stock may be undervalued.
• The company paid a quarterly dividend of $1.50 ($6.00 annualized, 2.7% yield) and insiders sold roughly 49,092 shares (~$11.18M) in the past 90 days while institutional ownership is about 84.7%.

M&T Bank (NYSE:MTB - Get Free Report) posted its earnings results on Wednesday. The financial services provider reported $4.13 EPS for the quarter, topping analysts' consensus estimates of $4.01 by $0.12, RTT News reports. M&T Bank had a return on equity of 10.94% and a net margin of 21.55%.During the same period in the prior year, the company earned $3.32 EPS.

M&T Bank Trading Down 0.3%

Shares of MTB opened at $220.60 on Wednesday. M&T Bank has a twelve month low of $154.98 and a twelve month high of $239.00. The company has a market cap of $32.87 billion, a P/E ratio of 12.94, a P/E/G ratio of 1.10 and a beta of 0.60. The company has a current ratio of 0.96, a quick ratio of 0.96 and a debt-to-equity ratio of 0.41. The company's fifty day simple moving average is $215.87 and its 200-day simple moving average is $203.86.

M&T Bank Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, March 31st. Stockholders of record on Monday, March 2nd were paid a $1.50 dividend. The ex-dividend date of this dividend was Monday, March 2nd. This represents a $6.00 annualized dividend and a dividend yield of 2.7%. M&T Bank's dividend payout ratio is currently 35.19%.

Insider Activity

In other news, Vice Chairman Gary N. Geisel sold 887 shares of the stock in a transaction on Wednesday, January 28th. The shares were sold at an average price of $215.79, for a total value of $191,405.73. Following the sale, the insider owned 16,446 shares of the company's stock, valued at approximately $3,548,882.34. This represents a 5.12% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, EVP Michael A. Wisler sold 8,237 shares of the stock in a transaction on Thursday, February 26th. The shares were sold at an average price of $223.48, for a total transaction of $1,840,804.76. Following the completion of the sale, the executive vice president directly owned 4,643 shares in the company, valued at approximately $1,037,617.64. This represents a 63.95% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 49,092 shares of company stock worth $11,182,250. Insiders own 0.44% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the stock. Wedbush Securities Inc. grew its holdings 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 purchasing an additional 52 shares during the last quarter. Bank of Jackson Hole Trust grew its holdings in shares of 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 worth $43,000 after purchasing an additional 60 shares during the last quarter. Geneos Wealth Management Inc. grew its holdings in shares of M&T Bank by 4.3% in the second quarter. Geneos Wealth Management Inc. now owns 1,727 shares of the financial services provider's stock worth $335,000 after purchasing an additional 71 shares during the last quarter. Zions Bancorporation National Association UT grew its holdings in shares of M&T Bank by 9.5% in the fourth quarter. Zions Bancorporation National Association UT now owns 1,621 shares of the financial services provider's stock worth $327,000 after purchasing an additional 140 shares during the last quarter. Finally, Triumph Capital Management bought a new position in shares of M&T Bank in the third quarter worth about $32,000. 84.68% of the stock is currently owned by institutional investors.

M&T Bank announced that its Board of Directors has authorized a stock buyback plan on Tuesday, March 31st that permits the company to repurchase $5.00 billion in outstanding shares. This repurchase authorization permits the financial services provider to buy up to 16.7% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company's management believes its stock is undervalued.

Wall Street Analyst Weigh In

A number of equities research analysts recently commented on MTB shares. 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, April 6th. Wall Street Zen downgraded shares of M&T Bank from a "hold" rating to a "sell" rating in a research note on Saturday, March 21st. Royal Bank Of Canada upped their price target on shares of M&T Bank from $210.00 to $220.00 and gave the company an "outperform" rating in a research note on Friday, January 16th. Barclays upped their price target on shares of M&T Bank from $220.00 to $236.00 and gave the company an "equal weight" rating in a research note on Monday, January 5th. Finally, UBS Group decreased their price target on shares of M&T Bank from $230.00 to $225.00 and set a "neutral" rating on the stock in a research note on Tuesday, April 7th. One equities research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, twelve have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, M&T Bank presently has a consensus rating of "Hold" and an average target price of $230.24.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.