M&T Bank (NYSE:MTB) to Buyback $5.00 billion in Stock

Key Points

• M&T Bank authorized a $5.0 billion stock repurchase, permitting the company to buy back up to 16.7% of outstanding shares via open‑market purchases—a move typically signaling the board views the stock as undervalued.
• M&T also declared a quarterly dividend of $1.50 per share ($6.00 annualized), about a 2.9% yield, with an ex‑dividend date of March 2 and payment on March 31.
• The stock traded at $206.97 after the news; the bank reported Q EPS of $4.72 (beating estimates), has a market cap of roughly $30.8 billion and a PE of about 12.1, while analysts’ average price target is approximately $231.50.

M&T Bank (NYSE:MTB - Get Free Report) declared that its Board of Directors has initiated a stock repurchase program on Tuesday, March 31st, RTT News reports. The company plans to buyback $5.00 billion in outstanding shares. This buyback authorization permits the financial services provider to reacquire up to 16.7% of its shares through open market purchases. Shares buyback programs are typically an indication that the company's board believes its stock is undervalued.

M&T Bank Stock Performance

MTB traded up $5.84 on Tuesday, hitting $206.97. 1,681,626 shares of the company traded hands, compared to its average volume of 1,263,168. M&T Bank has a 12-month low of $150.75 and a 12-month high of $239.00. The company has a 50 day moving average of $216.63 and a 200-day moving average of $202.69. The company has a quick ratio of 0.96, a current ratio of 0.96 and a debt-to-equity ratio of 0.41. The stock has a market capitalization of $30.84 billion, a PE ratio of 12.14, a PEG ratio of 0.95 and a beta of 0.58.

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 for the quarter, beating the consensus estimate of $4.47 by $0.25. M&T Bank had a return on equity of 10.94% and a net margin of 21.55%.The company had revenue of $1.79 billion for the quarter, compared to the consensus estimate of $2.47 billion. During the same period last year, the business posted $3.77 EPS. Sell-side analysts anticipate that M&T Bank will post 16.57 earnings per share for the current year.

M&T Bank Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, March 31st. Stockholders of record on Monday, March 2nd will be paid a dividend of $1.50 per share. This represents a $6.00 dividend on an annualized basis and a dividend yield of 2.9%. The ex-dividend date is Monday, March 2nd. M&T Bank's payout ratio is 35.19%.

Wall Street Analyst Weigh In

MTB has been the subject of a number of research analyst reports. Jefferies Financial Group upped their target price on M&T Bank from $255.00 to $265.00 and gave the company a "buy" rating in a research report on Thursday, March 5th. The Goldman Sachs Group boosted their price objective on M&T Bank from $230.00 to $231.00 and gave the company a "neutral" rating in a research note on Tuesday, January 20th. Wall Street Zen downgraded M&T Bank from a "hold" rating to a "sell" rating in a report on Saturday, March 21st. UBS Group lifted their target price on shares of M&T Bank from $217.00 to $230.00 and gave the company a "neutral" rating in a report on Wednesday, February 4th. Finally, Keefe, Bruyette & Woods increased their price target on shares of M&T Bank from $220.00 to $230.00 and gave the stock a "market perform" rating in a research note on Wednesday, December 17th. One equities research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, twelve have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average price target of $231.50.

Insider Activity

In other news, Vice Chairman Gary N. Geisel sold 887 shares of the stock in a transaction that occurred on Wednesday, January 28th. The stock was sold at an average price of $215.79, for a total transaction of $191,405.73. Following the completion of 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. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, Director John P. Barnes sold 21,193 shares of M&T Bank stock in a transaction that occurred on Monday, February 9th. The shares were 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 approximately $3,571,240.70. This trade represents a 58.33% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 49,092 shares of company stock valued at $11,182,250. Company insiders own 0.44% 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.

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.