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M&T Bank Corporation (MTB), headquartered in Buffalo, New York, is a bank holding company with a market cap of $29.1 billion. It operates through its subsidiaries, Manufacturers and Traders Trust Company and Wilmington Trust, National Association, offering a comprehensive range of retail and commercial banking products and services across the United States.
Companies valued at more than $10 billion or more are generally considered “large-cap stocks,” and MTB fits this criterion perfectly. The company benefits from a massive portfolio of financial services offered to corporations and institutions, investment bankers, corporate tax, finance and legal executives, and other institutional clients.
Despite its strengths, MTB has faced pressure and has fallen 21.6% from its 52-week high of $225.70, recorded on Nov. 25 last year. MTB stock has fallen 6.6% over the past three months, lagging behind the broader S&P 500 Index ($SPX), which declined 4.5% during the same period.
Over the past six months, shares of MTB declined 1.5%, compared to $SPX’s marginal decline. However, MTB has surged 23.6% over the past 52 weeks, outperforming SPX's 8.4% return.
MTB has dipped below its 200-day moving average since early March and has been trading under its 50-day moving average since the end of February, enforcing a downtrend.
MTB shares declined 2.4% following its Q4 earnings release on Jan. 16. The company reported a 41.3% increase in its net income for the quarter, which amounted to $681 million. This growth could be credited to a rise in commercial mortgage banking revenues, a distribution from an equity investment, and higher net gains on bank investment securities. Additionally, its EPS amounted to $3.92, surpassing the Wall Street estimates by 6%.
MTB’s rival, Fifth Third Bancorp (FITB), has lagged behind MTB, declining 8.8% over the past six months and surging 7.7% over the past 52 weeks.
MTB has a consensus rating of “Moderate Buy” from 19 analysts in coverage, indicating a moderately optimistic attitude from analysts. Its mean price target of $221.97 represents an upside of 25.5% from the current market prices.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
