M&T Bank (NYSE:MTB) Stock Price Expected to Rise, Barclays Analyst Says

Key Points

• Barclays raised its price target on M&T Bank from $236 to $267, implying about 7.5% upside from the prior close, while keeping an equal weight rating on the stock.
• M&T Bank reported strong quarterly results, posting EPS of $5.32 versus $4.66 expected and revenue of $2.53 billion versus $2.46 billion expected. The company also beat year-ago earnings, reinforcing a positive near-term outlook.
• Shareholder returns remain a focus as M&T Bank’s board approved a $5 billion share repurchase program, authorizing buybacks of up to 16.7% of outstanding shares, which management typically signals as a belief the stock is undervalued.

M&T Bank (NYSE:MTB - Get Free Report) had its price target increased by equities researchers at Barclays from $236.00 to $267.00 in a research report issued to clients and investors on Thursday,Benzinga reports. The brokerage currently has an "equal weight" rating on the financial services provider's stock. Barclays's price objective would indicate a potential upside of 7.49% from the company's previous close.

A number of other brokerages have also recently weighed in on MTB. Cantor Fitzgerald raised their price objective on M&T Bank from $253.00 to $262.00 and gave the company an "overweight" rating in a report on Wednesday. JPMorgan Chase & Co. increased their price objective on M&T Bank from $227.00 to $251.50 and gave the company a "neutral" rating in a research note on Monday, July 6th. Wall Street Zen lowered M&T Bank from a "hold" rating to a "sell" rating in a research note on Sunday. UBS Group upped their target price on shares of M&T Bank from $225.00 to $252.00 and gave the stock a "neutral" rating in a research report on Tuesday, July 7th. Finally, Robert W. Baird restated a "neutral" rating and set a $240.00 price target on shares of M&T Bank in a report on Monday, July 6th. Seven research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus price target of $246.08.

M&T Bank Stock Up 2.7%

Shares of NYSE:MTB opened at $248.39 on Thursday. The company has a market cap of $36.38 billion, a price-to-earnings ratio of 13.91, a PEG ratio of 1.20 and a beta of 0.57. M&T Bank has a one year low of $174.76 and a one year high of $248.74. The firm has a fifty day moving average price of $224.43 and a two-hundred day moving average price of $218.41. 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 announced its earnings results on Wednesday, July 15th. The financial services provider reported $5.32 earnings per share for the quarter, beating analysts' consensus estimates of $4.66 by $0.66. M&T Bank had a net margin of 22.07% and a return on equity of 11.35%. The business had revenue of $2.53 billion for the quarter, compared to the consensus estimate of $2.46 billion. During the same period last year, the firm posted $4.28 earnings per share. Analysts anticipate that M&T Bank will post 18.81 EPS for the current fiscal year.

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

Insider Activity at M&T Bank

In other M&T Bank news, EVP Christopher E. Kay sold 3,105 shares of M&T Bank stock in a transaction that occurred on Thursday, May 7th. The shares were sold at an average price of $216.50, for a total transaction of $672,232.50. Following the transaction, the executive vice president owned 6,753 shares of the company's stock, valued at $1,462,024.50. The trade was a 31.50% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 0.44% of the stock is owned by company insiders.

Institutional Trading of M&T Bank

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Bogart Wealth LLC boosted its holdings in shares of M&T Bank by 233.3% during the 1st quarter. Bogart Wealth LLC now owns 120 shares of the financial services provider's stock valued at $25,000 after purchasing an additional 84 shares during the last quarter. Triumph Capital Management bought a new stake in M&T Bank in the 3rd quarter worth approximately $32,000. Elyxium Wealth LLC purchased a new stake in shares of M&T Bank during the 4th quarter worth approximately $33,000. Bank of Jackson Hole Trust boosted its position in shares of M&T Bank by 38.7% during the 4th 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, FNY Investment Advisers LLC purchased a new position in shares of M&T Bank in the second quarter valued at $51,000. Institutional investors own 84.68% of the company's stock.

Key Headlines Impacting M&T Bank

Here are the key news stories impacting M&T Bank this week:

• Positive Sentiment: M&T Bank beat Q2 estimates, reporting EPS of $5.32 to $5.35 versus $4.66 expected, with revenue of $2.53 billion above forecasts. The strong quarter was driven by higher interest income, fee income, and trust income. Reuters article
• Positive Sentiment: Management and analysts highlighted record earnings, robust net interest margin of about 3.7%, and solid loan growth, especially in commercial and real estate lending, which supports the bank’s outlook. Seeking Alpha article
• Positive Sentiment: Credit quality improved, with credit losses falling and noninterest income climbing, helping offset rising expenses and reinforcing the view that M&T’s balance sheet remains resilient. Seeking Alpha news
• Neutral Sentiment: The company also announced quarterly preferred stock dividends, including payouts on Series H, Series J, and Series K preferred shares. This is a routine capital action and is unlikely to be a major driver of the common stock today. PR Newswire article

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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