Stock (Symbol) |
M&T Bank (MTB) |
Stock Price |
$196 |
Sector |
| Finance |
Data is as of |
| February 27, 2018 |
Expected to Report |
| Apr 16 |
Company Description |
 M&T Bank Corporation (M&T) is a bank holding company. As of December 31, 2012, M&T had two wholly owned bank subsidiaries: M&T Bank and Wilmington Trust, National Association (Wilmington Trust, N.A.). The banks collectively offer a range of retail and commercial banking, trust, wealth management and investment services to their customers. Source: Thomson Financial |
Sharek’s Take |
 M&T Bank (MTB) has totally left me behind as itt embarks on what looks like a long-term move higher. I used to own MTB in client accounts, then sold it just before it broke out after Donald Trump got elected President. Then I watched the stock run higher as interest rates rose. MTB is $183 today, and was between $150 and $170 for much of 2017. If the stock can come down to the $170 level I’d like to buy in. M&T Bank was founded in 1856 and has a heavily concentrated presence of more than 700 branches in the New York/Maryland surrounding area, where it is the number one small business lender. Berkshire Hathaway owns around 5% of the company and management puts profits to shareholders first. MTB has been profitable in every quarter the past 36 years and during the last 30 years a third of profits have gone to dividends, another third to repurchase shares, and the rest for retained capital. It’s the only commercial bank in the S&P 500 to weather the financial crisis without cutting its dividend or raising capital. What fueled growth is acquisitions, as the company closed around 25 in the last 25 years. MTB went from $2.50 to $100 from 1985 to 2005 then was stuck between $75 and $125 for much of the decade after. After the Presidential election the stock jumped from $120 to $196 (when these charts below were done). Now MTB has come down a bit, but the stock is still well above where it was six months ago. Some of the reason it’s so high is due to the new tax law, as that not only increases 2018 EPS but also gives management more cash for stock buybacks. Overall, 2018 estimates increased from $10 last qtr to $12.23 this qtr. I am looking to buy this stock for the Conservative Growth Portfolio. |
One Year Chart |
 Wow this stock looks like a stud in the one-year chart. These charts/tables were done around a month ago when MTB was $196. Since then it’s declined to $183. Last qtr the company delivered 34% profit growth and beat estimates of 22% growth. Sales rose 9%. Qtrly profit Estimates of 29%, 31%, 45% and 21% are outstanding. The Est. LTG of 9% plus a yield of 2% give this stock an estimated total annual return of 11% per year, but I wouldn’t count on that as MTB’s annual returns have been all over the place. |
Fair Value |
 I did these charts and tables on 2/27 when the stock was $196. Today the stock is down to $183, but that’s not enough to entice me to buy — even though I probably should be. |
Bottom Line |
 M&T Bank stock’s recent recovery is due to Trump being elected president and the impact of higher interest rates. The stock has had two big jumps and I’m not fond of the chart patterns that have developed. But I do like the profit growth. This is a fine stock for conservative investors as it’s safe and could deliver double-digit total returns. MTB is on my radar for the Conservative Growth Portfolio. I owned the stock between $100 and $125 or so and sold before the move higher as estimates had been on a steady decline. I really regret that, and if I get back in again I will likely buy-and-hold. |
Power Rankings |
Growth Stock Portfolio
N/AAggressive Growth Portfolio N/AConservative Stock Portfolio N/A |
