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New York-based M&T Bank Corporation (MTB) operates as a bank holding company for Manufacturers and Traders Trust Company and Wilmington Trust, National Association. Valued at a market cap of $36.7 billion, the company operates through three segments: Commercial Bank, Retail Bank, Institutional Services and Wealth Management.
Shares of this bank have significantly outperformed the broader market over the past 52 weeks. MTB has soared 75.7% over this time frame, while the broader S&P 500 Index ($SPX) has gained 32.1%. Moreover, the stock is up 61%, compared to SPX’s 26.2% gain on a YTD basis.
Zooming in further, MTB’s outperformance looks even more pronounced when compared to the Financial Select Sector SPDR Fund’s (XLF) 44.6% gain over the past 52 weeks and 36.1% return on a YTD basis.
On Oct. 17, shares of MTB rose 5% after its Q3 earnings release. The company’s EPS slightly increased by 1% year-over-year to $4.02, and its net interest income decreased by 2.8% from a year ago. On the bright side, its 8.2% annual increase in non-interest income to $606 million and raised full-year 2024 outlook for net interest income and fee revenue might have impressed investors and led to its upward price movement. However, in a recent high-profile insider transaction on Nov. 21, John P Barnes, a director at MTB, sold 17,094 shares of the company, which makes up approximately 34.2% of Barnes' shares.
For the current fiscal year, ending in December, analysts expect MTB’s EPS to decline nearly 9.5% year over year to $14.56. The company’s earnings surprise history is mixed. It beat the consensus estimates in two of the last four quarters while missing on other two occasions.
Among the 18 analysts covering the stock, the consensus rating is a “Moderate Buy,” which is based on 10 “Strong Buy,” one “Moderate Buy,” six “Hold,” and one “Strong Sell” rating.
The configuration is more bullish than three months ago, with eight analysts suggesting a “Strong Buy.”
On Nov. 26, Goldman Sachs maintained a “Neutral” rating on MTB and raised its price target to $243, which indicates a 10.1% potential upside from the current levels.
The Street-high price target of $269 suggests an upside potential of 21.8%, and as of writing, the company is trading above its mean price target of $220.39.
