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Valued at a market cap of $29 billion, M&T Bank Corporation (MTB) operates in the financial services sector. The Buffalo, New York-based company offers a broad array of retail and commercial banking products through its various segments, catering to both individual and commercial clients.
Companies valued at $10 billion or more are generally considered “large-cap” stocks, and M&T Bank fits this criterion perfectly. M&T Bank is known for its extensive regional presence with over 1,000 branches and its significant community involvement, including naming rights for prominent sports and university venues.
However, MTB saw a 1.5% pullback from its 52-week high of $176.44, achieved in July. Over the past three months, M&T Bank's shares have risen 20.1%, outperforming The Financial Select Sector SPDR Fund's (XLF) 10.5% gain over the same period.
Over the longer term, MTB's stock is up 26.8% on a YTD basis, outpacing XLF's 20.6% gains. Additionally, MTB's shares have returned 34.4% over the past 52 weeks, while XLF has increased 30.2% during the same period.
To confirm the bullish price trend, MTB's stock has been trading above its 50-day and 200-day moving averages since November last year despite some fluctuations.
M&T Bank has outperformed due to strong credit recoveries, improved credit quality, and ongoing loan growth despite muted deposit growth. Moreover, the stock rose 1.7% on Jul. 18 after the company reported stronger-than-expected Q2 adjusted EPS of $3.79 and revenue of $2.3 billion, coupled with a raised forecast for annual net interest income. The upbeat performance, driven by anticipated Federal Reserve rate cuts and plans to resume $200 million in share repurchases, bolstered investor confidence.
MTB has outperformed its rival, Bank of America Corporation (BAC) on a YTD basis, with BAC stock rising 17.5%. But, BAC's shares have jumped 37.1% over the past 52 weeks, outperforming MTB over the same time frame.
Despite the stock’s strong price action, analysts are cautiously optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 21 analysts covering it, and the mean price target of $184.60 indicates a premium of just 6.2% to current levels.
On the date of publication, Sohini Mondal 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.
