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

M&T Bank (NYSE:MTB) declared that its Board of Directors has approved a share buyback program on Tuesday, March 31st, RTT News reports. The company plans to buyback $5.00 billion in shares. This buyback authorization permits the financial services provider to buy up to 16.7% of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s board believes its shares are undervalued.

M&T Bank Price Performance

M&T Bank stock opened at $210.25 on Friday. The firm has a market capitalization of $31.33 billion, a PE ratio of 12.33, a P/E/G ratio of 0.99 and a beta of 0.60. M&T Bank has a 52 week low of $150.75 and a 52 week high of $239.00. The firm’s 50-day simple moving average is $216.29 and its 200 day simple moving average is $202.79. The company has a quick ratio of 0.96, a current ratio of 0.96 and a debt-to-equity ratio of 0.41.

M&T Bank (NYSE:MTB) last announced its earnings results on Friday, January 16th. The financial services provider reported $4.72 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.47 by $0.25. M&T Bank had a net margin of 21.55% and a return on equity of 10.94%. The company had revenue of $1.79 billion during the quarter, compared to analysts’ expectations of $2.47 billion. During the same quarter in the previous year, the business posted $3.77 earnings per share. On average, equities research analysts predict that M&T Bank will post 16.57 EPS for the current fiscal year.

M&T Bank Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, March 31st. Investors of record on Monday, March 2nd were given a $1.50 dividend. This represents a $6.00 annualized dividend and a dividend yield of 2.9%. The ex-dividend date of this dividend was Monday, March 2nd. M&T Bank’s dividend payout ratio (DPR) is 35.19%.

Analysts Set New Price Targets

MTB has been the subject of several recent analyst reports. Morgan Stanley lowered their target price on shares of M&T Bank from $271.00 to $245.00 and set an “equal weight” rating on the stock in a report on Tuesday. Jefferies Financial Group increased their price target on shares of M&T Bank from $255.00 to $265.00 and gave the stock a “buy” rating in a report on Thursday, March 5th. Wolfe Research downgraded shares of M&T Bank from an “outperform” rating to a “peer perform” rating in a research report on Wednesday, January 7th. Wall Street Zen lowered M&T Bank from a “hold” rating to a “sell” rating in a report on Saturday, March 21st. Finally, Weiss Ratings reiterated a “buy (b-)” rating on shares of M&T Bank in a research report on Monday, December 29th. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, twelve have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of $231.50.

Insider Transactions at M&T Bank

In related news, EVP Michael A. Wisler sold 8,237 shares of M&T Bank stock in a transaction on Thursday, February 26th. The stock was sold at an average price of $223.48, for a total value of $1,840,804.76. Following the transaction, the executive vice president owned 4,643 shares in the company, valued at approximately $1,037,617.64. This trade represents a 63.95% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Vice Chairman Gary N. Geisel sold 887 shares of the company’s stock in a transaction dated Wednesday, January 28th. The stock was 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 $3,548,882.34. This represents a 5.12% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 49,092 shares of company stock valued at $11,182,250. Corporate 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.