M&T Bank (NYSE: MTB) received a downgrade from Wall Street Zen, which lowered its rating from “hold” to “sell” in a report published on January 16, 2024. This shift reflects growing caution among analysts regarding the bank’s stock performance.
Several other financial institutions have also revised their ratings on M&T Bank. Notably, the Royal Bank Of Canada raised its price target from $210.00 to $220.00 while maintaining an “outperform” rating. In contrast, Evercore ISI changed its stance from “outperform” to “hold,” adjusting its price objective upward from $210.00 to $225.00. Cantor Fitzgerald set a new target price of $238.00, up from $228.00, assigning an “overweight” rating. Meanwhile, Keefe, Bruyette & Woods increased their target from $220.00 to $230.00 with a “market perform” rating.
Piper Sandler also raised its price target for M&T Bank from $225.00 to $235.00. Currently, the stock has received one “strong buy” rating, eight “buy” ratings, eleven “hold” ratings, and one “sell” rating. According to MarketBeat.com, M&T Bank holds an average rating of “hold” and a mean price target of $224.29.
Recent Earnings and Dividend Announcements
On the same day as the rating changes, M&T Bank announced its quarterly earnings. The bank reported earnings per share (EPS) of $4.72, surpassing analysts’ expectations of $4.47 by $0.25. The total revenue for the quarter reached $2.48 billion, slightly exceeding the consensus estimate of $2.47 billion. The bank achieved a net margin of 21.55% and a return on equity of 10.94%. In the same quarter the previous year, M&T Bank reported an EPS of $3.77, highlighting significant year-on-year growth.
Additionally, M&T Bank declared a quarterly dividend of $1.50 per share, which was paid on December 31, 2023. This dividend translates to an annualized amount of $6.00, yielding 2.8%. The ex-dividend date was December 1, 2023, and the current dividend payout ratio stands at 35.19%.
Insider Trading and Institutional Changes
In other developments, M&T Bank’s Director John P. Barnes sold 17,866 shares on January 22, 2024, at an average price of $220.81, resulting in a total transaction value of approximately $3.94 million. This transaction was disclosed in a filing with the Securities and Exchange Commission (SEC). Additionally, Executive Vice President Christopher E. Kay sold 5,250 shares on November 26, 2023, for around $1.01 million.
In the past ninety days, insiders have offloaded a total of 29,116 shares valued at approximately $6.09 million. Currently, insiders hold 0.53% of the company’s stock.
Institutional investors have also made significant adjustments to their holdings in M&T Bank. For instance, Golden State Wealth Management LLC increased its position by an astonishing 2,214.3% in the second quarter, while Bank of Jackson Hole Trust raised its holdings by 342.9% in the third quarter. Other notable changes include Triumph Capital Management acquiring a new stake valued at around $32,000 and Ameriflex Group Inc. boosting its holdings by 82.4%.
As of now, institutional and hedge fund investors collectively own 84.68% of M&T Bank’s shares.
About M&T Bank
M&T Bank Corporation, headquartered in Buffalo, New York, is a bank holding company that offers a wide array of banking and financial services to individuals, businesses, and institutions. Its operations encompass commercial and retail banking, including deposit-taking, lending, and payment services, delivered through both branch networks and digital channels.
The bank primarily serves customers in the northeastern and mid-Atlantic regions of the United States and has expanded its footprint through targeted acquisitions. Key services include commercial banking for middle-market and community enterprises, consumer and retail banking, mortgage origination and servicing, as well as treasury management and wealth services.
M&T Bank continues to navigate a dynamic financial landscape, and these recent developments underscore the importance of monitoring its stock performance and market position.
