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M&T Bank vice chairman Pearson sells over $989k in company stock

Published 13/08/2024, 22:30

MTB
-1.66%

M&T Bank Corp (NYSE:MTB) Vice Chairman Kevin J. Pearson (LON:PSON) has sold 6,095 shares of the company's common stock, according to a recent SEC filing. The transaction, which took place on August 9, 2024, was executed at an average price of $162.275 per share, resulting in a total value of approximately $989,066.

The sale by Pearson, who is an officer of the bank, reduces his direct holdings in M&T Bank Corp to 47,944 shares following the transaction. This move comes alongside Pearson's reported transfer of 1,400 shares by gift, a transaction which did not involve any payment consideration as per the footnotes in the SEC filing.

M&T Bank Corp, headquartered in Buffalo, New York, is a financial institution that operates primarily in the state commercial banks sector. The company's shares are publicly traded on the New York Stock Exchange under the ticker symbol MTB.

In addition to the transactions involving common stock, the SEC filing also disclosed holdings in indirect forms such as a grantor retained annuity trust (2020 GRAT) and supplemental 401(k) plans. However, these holdings did not involve direct buy or sell transactions and are reported as per the requirements of the SEC.

Investors often monitor insider transactions as they provide insights into executives' confidence in the company's future performance. Pearson's recent stock sale is one such transaction that market participants may consider when evaluating their investment decisions in M&T Bank Corp.

In other recent news, M&T Bank has reported strong financial performance in its second-quarter 2024 earnings, with a GAAP EPS of $3.73 and net income of $655 million. The bank's revenue growth was driven by an increase in fee income and net interest income (NII), which also contributed to the earnings beat. In response to these results, Piper Sandler upgraded its price target for M&T Bank to $190 from $164, maintaining an Overweight rating.

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M&T Bank has also announced its plan to resume share repurchases in the second half of 2024, with a projected pace of $200 million per quarter. The bank's sustainability finance loans and investments have reached $3.1 billion, demonstrating its commitment to environmental initiatives. Furthermore, M&T Bank has been recognized for its services, including awards for its mobile banking app and being named Securitization Trustee of the Year.

These recent developments indicate M&T Bank's ongoing efforts to enhance credit quality and reduce commercial real estate concentrations as part of its risk management strategy. According to Piper Sandler, the bank is expected to see an increase in share repurchases and a significant reduction in criticized and classified loan balances in the upcoming quarters. Despite these positive developments, M&T Bank's shares continue to trade at a modest discount compared to its peers.

InvestingPro Insights

Following the recent insider transaction at M&T Bank Corp (NYSE:MTB), where Vice Chairman Kevin J. Pearson sold a substantial number of shares, investors might be interested in several key metrics and insights that can provide a broader context to the company's current financial health and future outlook.

The company holds a market capitalization of $26.73 billion, which reflects its substantial presence in the financial sector. With a Price/Earnings (P/E) ratio of 11.84 and an adjusted P/E ratio for the last twelve months as of Q2 2024 at 11.89, M&T Bank Corp is valued by the market at a level that suggests investors are expecting earnings to remain consistent. The PEG ratio, which stands at -0.6, might raise questions about the company's future growth prospects relative to its earnings.

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One of the InvestingPro Tips that can be particularly enlightening in this scenario is that M&T Bank Corp has raised its dividend for 7 consecutive years and has maintained dividend payments for 46 consecutive years. This indicates a strong commitment to returning value to shareholders and a reliable dividend history. Moreover, the company has a dividend yield of 3.37%, which is appealing to income-seeking investors, especially considering the dividend growth over the last twelve months has been 3.85%.

Another InvestingPro Tip is that 6 analysts have revised their earnings upwards for the upcoming period, suggesting that there may be a positive sentiment regarding the company's ability to outperform expectations. This could provide some reassurance to investors in light of the insider selling activity.

It's worth noting that M&T Bank Corp has been profitable over the last twelve months, with an operating income margin of 40.89%, reinforcing the company's financial stability. However, the company has experienced a revenue decline of 8.73% over the last twelve months as of Q2 2024, which investors should consider in their analysis.

For those seeking additional insights, there are more InvestingPro Tips available on Investing.com, including details on the company's gross profit margins and profitability predictions for this year. In total, InvestingPro lists 6 additional tips for M&T Bank Corp, providing a comprehensive view for those looking to delve deeper into the company's financials and performance.

As investors digest the implications of the insider sale, these InvestingPro metrics and tips offer a data-driven perspective on M&T Bank Corp's financial health and potential future trajectory.

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This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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