M&T Bank (NYSE: MTB) has experienced a significant downgrade, as Wall Street Zen lowered its rating from “hold” to “sell” in a report released on Friday morning. This change comes amid a flurry of activity from various equity analysts, each adjusting their perspectives on the bank’s stock.
The Royal Bank of Canada has raised its price target for M&T Bank from $210.00 to $220.00, maintaining an “outperform” rating. This adjustment was noted in a research report on January 16, 2025. Conversely, Evercore ISI downgraded the bank from “outperform” to “hold,” while increasing its price objective from $210.00 to $225.00 earlier in January. Cantor Fitzgerald also raised its target price, moving it from $228.00 to $238.00 and assigning an “overweight” rating on the same day.
In addition to these changes, Keefe, Bruyette & Woods lifted their target price from $220.00 to $230.00, giving the company a “market perform” rating. Meanwhile, Piper Sandler increased its price target from $225.00 to $235.00. Currently, one analyst has issued a “Strong Buy” rating for the stock, while eight recommend a “Buy,” eleven suggest a “Hold,” and one analyst has rated it as a “Sell.” According to MarketBeat.com, M&T Bank has an average rating of “Hold” and a mean price target of $224.29.
Recent Financial Performance and Dividends
M&T Bank recently reported its quarterly earnings on January 16, 2025. The financial services provider posted earnings per share (EPS) of $4.72, surpassing analysts’ consensus estimates of $4.47 by $0.25. The company recorded revenue of $2.48 billion, slightly exceeding the expected $2.47 billion. M&T Bank achieved a net margin of 21.55% and a return on equity of 10.94%. In the same quarter the previous year, the bank reported an EPS of $3.77, indicating a positive trend in profitability.
Additionally, M&T Bank announced a quarterly dividend of $1.50, which was paid on December 31, 2024, to shareholders of record on December 1. This dividend translates to an annualized rate of $6.00 and a yield of 2.8%. The company’s dividend payout ratio stands at 35.19%.
Insider Transactions and Institutional Holdings
In related news, insider trading activity has been notable. On January 22, John P. Barnes, a director at M&T Bank, sold 17,866 shares at an average price of $220.81, resulting in a transaction valued at approximately $3.94 million. Another executive, Christopher E. Kay, sold 5,250 shares on November 26, 2024, for $1.01 million. Following this sale, Kay retained 5,501 shares valued at approximately $1.05 million, reflecting a 48.83% decrease in his holdings. Over the past ninety days, insiders have sold a total of 29,116 shares, valued at around $6.09 million. Currently, insiders own 0.53% of the company’s stock.
Institutional investors have also been active in the market. Golden State Wealth Management LLC increased its holdings in M&T Bank by 2,214.3% during the second quarter, now owning 162 shares valued at approximately $31,000. Similarly, Bank of Jackson Hole Trust raised its position by 342.9% in the third quarter, acquiring 155 shares worth $31,000. Other firms, including Triumph Capital Management and Twin Peaks Wealth Advisors LLC, have also established new stakes in the bank.
As of now, institutional and hedge fund investors collectively hold 84.68% of M&T Bank’s stock, highlighting strong institutional interest in the company.
M&T Bank Corporation is headquartered in Buffalo, New York, providing a variety of banking and financial services to individuals, businesses, and institutions. The bank operates through a network of branches and digital channels, serving customers primarily in the northeastern and mid-Atlantic regions of the United States. Its core offerings include commercial banking, consumer banking, mortgage services, and wealth management.
