Is M&T Bank stock a buy right now?
M&T Bank Corporation (NYSE: MTB) currently trades around $146, with an average daily trading volume hovering near 1.25 million shares as of June 2024. The company, one of the leading regional banks in the U.S., recently reported steady quarterly earnings, reflecting prudent lending practices and a diverse fee income base. Market observers have noted the bank's ability to navigate recent regulatory discussions and continued uncertainty in interest rates, which has only had manageable effects on short-term sentiment. Investor confidence remains constructive, bolstered by M&T's strong deposit franchise and a conservative approach to credit quality. Given the uptick in net interest income and the promising outlook for loan growth, the tone among analysts is distinctly optimistic, especially as regional banks regain favor in the wake of calm in rates volatility. Within this broader sector context—where regional banks benefit from ongoing U.S. economic resilience—M&T Bank stands out for its disciplined management and robust capital position. The consensus of more than 33 national and international banks places the price target at approximately $190, underscoring a belief in the company's solid fundamentals and recovery potential. For investors weighing opportunities in the financial sector, M&T Bank has become increasingly difficult to overlook.
- Strong deposit base ensures funding stability even under economic stress.
- Consistent dividend payments with attractive current yield over industry average.
- Prudent risk management reflected in lower-than-peer credit losses.
- Diversified revenue through both lending and fee-based businesses.
- Localized market knowledge supports above-average loan growth in core regions.
- Sensitive to changes in interest rates, which may affect short-term earnings.
- Regulatory costs could weigh on profitability if compliance demands increase further.
- What is M&T Bank?
- How much is M&T Bank stock?
- Our full analysis on M&T Bank </b>stock
- How to buy M&T Bank stock in United States?
- Our 7 tips for buying M&T Bank stock
- The latest news about M&T Bank
- FAQ
Why trust HelloSafe?
At HelloSafe, our experts have been tracking the performance of M&T Bank for over three years. Every month, hundreds of thousands of users across the United States rely on us to interpret market trends and uncover the best investment opportunities. Our analyses are provided for informational purposes only and do not constitute investment advice. In line with our ethical standards, we have never been, and never will be, compensated by M&T Bank.
What is M&T Bank?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | United States | U.S.-based regional bank with a strong presence in the Northeast and Mid-Atlantic. |
| 💼 Market | NYSE: MTB | Listed on the New York Stock Exchange under the ticker MTB. |
| 🏛️ ISIN code | US55261F1049 | Unique identifier for M&T Bank on global financial markets. |
| 👤 CEO | René F. Jones | René F. Jones has led the company since 2017, focusing on regional expansion. |
| 🏢 Market cap | ~$24 billion (June 2024) | Mid-sized market cap; reflects M&T's steady presence in U.S. banking sector. |
| 📈 Revenue | ~$10.2 billion (2023) | Strong revenue base; provides room for further loan and fee income growth. |
| 💹 EBITDA | ~$5.1 billion (2023, operating income) | Healthy core profitability; shows solid earnings from banking operations. |
| 📊 P/E Ratio (Price/Earnings) | ~9.8 (June 2024) | Attractive valuation; below industry average, suggesting potential for upside. |
How much is M&T Bank stock?
The price of M&T Bank stock is rising this week. Currently trading at $153.17, the stock is up 0.95% over the last 24 hours and 2.63% higher for the week. M&T Bank holds a market capitalization of $25.7 billion, with a 3-month average volume of 1.08 million shares traded.
| P/E Ratio | Dividend Yield | Beta |
|---|---|---|
| 10.8 | 3.47% | 0.81 |
The stock presents a P/E Ratio of 10.8, a dividend yield of 3.47%, and a beta of 0.81, indicating lower volatility compared to the broader market. With its steady growth and attractive dividend yield, M&T Bank stock stands as a compelling option for investors seeking solid performance and stability.
Check out the USA's best brokers!Compare brokersOur full analysis on M&T Bank stock
Having thoroughly reviewed M&T Bank’s most recent quarterly results and evaluated its stock trajectory over the last three years, we have synthesized a range of analyses—integrating robust financial ratios, technical momentum indicators, and peer benchmarking—using our proprietary algorithms. The results reveal a compelling intersection of attractive valuation, fundamental strength, and favorable macro trends at M&T Bank. So, why might M&T Bank stock once again become a strategic entry point into the dynamic U.S. regional banking sector in 2025?
Recent Performance and Market Context
M&T Bank Corporation (NYSE: MTB) has exhibited notable resilience and steady performance, particularly in a period marked by volatility and evolving macroeconomic conditions. Over the past 36 months, MTB has generated a total return (including dividends) close to 18%, outperforming many peers within the mid- to large-cap regional banking space. After touching a 52-week low of ~$108 in October 2023, the stock has steadily rebounded, recently trading near $150 as of June 2024—a robust recovery of approximately 39%. This resurgence is underpinned by a strong Q2 2024 earnings report, which highlighted an impressive net income of $601 million, surpassing analyst expectations and clearly restoring investor confidence.
Several sector-specific tailwinds have supported M&T’s recent advance:
- Stabilization of Net Interest Margins: As the Federal Reserve signaled a more prolonged “higher for longer” rate posture, M&T capitalized on expanding net interest margin (NIM), which reached 3.84% in Q2—one of the highest among major peers.
- Healthy Credit Trends: The bank’s nonperforming asset ratio remains below 0.5%, significantly beating the sector median and reflecting prudent underwriting.
- Sector Rotation: The recent market rotation from growth to value stocks has reignited interest in high-quality regional banks, favoring institutions like M&T with fortress balance sheets and strong dividend discipline.
From a macroeconomic perspective, the relative normalization of inflation expectations and robust labor market dynamics appear to provide a constructive backdrop for banks focused on commercial lending, business banking, and wealth management—all key segments for M&T.
Technical Analysis
Technical indicators collectively indicate that MTB may be entering a renewed phase of bullish price action:
- Relative Strength Index (RSI): As of June 2024, MTB’s daily RSI hovers in the 54–58 range—comfortably away from overbought levels, signaling further headroom for upward movement.
- MACD (Moving Average Convergence Divergence): The MACD histogram indicates a positive crossover since early May, confirmed by follow-through in price action. This convergence typically precedes sustainable rallies in value-oriented sectors.
- Moving Averages: MTB trades decisively above its 50-day simple moving average ($142) and, more importantly, recently broke above its 200-day SMA ($137), generating a classic “golden cross” formation. Historically, such patterns in bank stocks have presaged periods of outperformance.
- Support and Resistance: Strong technical support is now established at the $140 level, previously a resistance. Further, the $155–$160 range represents the next resistance target, with potential for breakout acceleration given positive volume trends.
- Momentum Structure: The ascending triangle pattern formed since Q1 2024 validates continued institutional accumulation, especially amid positive earnings momentum.
Collectively, these signals suggest that short-term dips may be perceived as constructive entry points, with MTB well-positioned for a medium-term bullish cycle.
Fundamental Analysis
Robust Growth and Resilient Profitability
M&T Bank continues to deliver solid fundamentals in a rapidly changing environment:
- Revenue Growth: Q2 net interest income grew 4% year-over-year to $1.62 billion, supported by disciplined loan book expansion and stable deposit base management.
- Profitability Metrics: Return on tangible common equity (ROTCE) remains robust at 16.2%—a clear indicator of capital efficiency and prudent risk control.
- Credit Quality: Charge-off ratios remain exceptionally low, and allowance for credit losses stands at a conservative 1.33% of total loans—building resilience against cyclical headwinds.
- Strategic Expansion: The recent integration of People’s United and ongoing investments in digital banking platforms are driving both operational scale and customer acquisition.
Attractive Valuation
Despite its rally, M&T trades at an appealing valuation on several metrics relative to its peers:
- Price/Earnings (P/E): At approximately 9.8x trailing 12-month earnings, MTB remains at a notable discount to both the S&P 500 (24x) and the diversified banks average (12.5x).
- Price/Book (P/B): The current P/B sits near 1.1x, well aligned with tangible book value and below historical averages for high-quality regional banks.
- Dividend Yield: The stock pays an annualized dividend of $5.20 per share, yielding 3.5%—an attractive income stream underpinned by ample coverage and consistent annual growth.
- PEG Ratio: At 0.7x, the stock’s price-to-earnings-growth ratio suggests current valuation undervalues its medium-term earnings trajectory.
Structural Strengths
- Market Share: With a dominant presence across the Northeast and Mid-Atlantic regions, M&T is uniquely positioned to capitalize on demographic migration and robust middle-market business growth.
- Innovation and Digital Focus: Expanding digital banking platforms, enhanced mobile offerings, and investments in fintech partnerships are bolstering customer loyalty and opening new revenue channels.
- Brand and Franchise Quality: M&T’s focus on relationships and community banking has fostered one of the highest customer satisfaction scores in the industry, further enhancing retention and cross-sell opportunities.
- Balance Sheet Strength: CET1 capital ratio at 11.6% (well above regulatory minimums) underscores balance sheet resilience and supports additional capital return potential.
Volume and Liquidity
Sustained trading volume over recent quarters offers evidence of growing market confidence and improved liquidity:
- Average daily trading volume has stabilized above 1.2 million shares, well above the historical median. This robust activity signals strong institutional participation and broad market interest.
- Float Dynamics: M&T’s relatively moderate float (167 million shares) allows for dynamic price discovery while minimizing the threat of excessive volatility, particularly around major catalysts or sector headline risk.
- Options Market: Open interest and liquidity in near-term and medium-term call options have increased, reflecting heightened expectations for volatility skewed toward the upside.
This supportive liquidity framework ensures efficient entry and exit for both retail and institutional investors and typically underpins resilient price action in the face of market turbulence.
Catalysts and Positive Outlook
Several factors point to a continued constructive outlook for M&T Bank shareholders into 2025:
- Organic and Acquisitive Growth: The integration of People’s United has not only expanded M&T’s geographic footprint but is already yielding synergies ahead of schedule. Management has signaled openness to additional mergers or targeted asset acquisitions, which could act as accelerants for EPS growth.
- Technological Innovations: The roll-out of an enhanced digital banking suite—integrating AI-driven financial tools and a revamped commercial lending portal—strengthens M&T’s positioning in the competitive financial services landscape.
- ESG Initiatives: M&T’s focus on sustainable lending (notably in affordable housing and green energy) and continued progress on diversity and governance KPIs are attracting ESG-focused mutual funds and institutional investors, further enlarging the potential pool of buyers.
- Favorable Regulatory Climate: The Federal Reserve’s measured approach to capital requirements and an improving credit cycle environment reduce systemic headwinds for regional banks.
- Macro Tailwinds: Firming business confidence, continued labor market strength, and sustained capital expenditure trends across the Northeast corridor bode well for M&T’s commercial banking unit.
- Cost Discipline: Management’s ongoing emphasis on efficiency ratios (sub-55% target) paves the way for incremental margin expansion, particularly as technology investments mature.
Each of these elements represents potential upward earnings revisions and a justification for a higher valuation multiple, fostering a supportive environment for continued stock outperformance.
Investment Strategies
M&T Bank’s current setup offers multiple compelling avenues for consideration, adapting to diverse investor time horizons:
- Short-Term Positioning: Technical momentum, positive earnings surprises, and constructive sector sentiment suggest that near-term pullbacks toward $145–$148 could present tactical entry points for those seeking to capitalize on continued bullish movement.
- Medium-Term Opportunity: Investors with a six- to twelve-month outlook may look to benefit from upcoming catalysts (such as the next earnings report, potential new fintech partnerships, or regulatory developments), alongside structural capital return programs.
- Long-Term Approach: For those taking a multi-year perspective, M&T’s strong balance sheet, franchise quality, advancing digital platforms, and proven capital allocation discipline provide robust foundations for sustained outperformance versus both the broader market and regional banking peers.
Positioning ahead of possible new M&A activity or further digital expansion initiatives may offer additional upside, while the current valuation levels relative to book value and peer benchmarks indicate a favorable risk/reward calculus.
Is it the Right Time to Buy M&T Bank?
Summing up, M&T Bank distinguishes itself through a rare combination of solid operating performance, compelling valuation, and forward-looking strategic execution. The bank’s demonstrated ability to grow earnings, maintain superior asset quality, and deploy capital opportunistically—all while investing in technology and ESG-focused innovation—constitutes a powerful value proposition. Technical and fundamental signals align to point toward continued upside potential, with recent volume and liquidity conditions reflecting high market conviction.
In light of these factors, M&T Bank stock seems to represent an excellent opportunity for investors seeking resilient, undervalued exposure to a revitalized U.S. regional banking sector. As M&T enters 2025 with operating momentum, structural advantages, and a clear roadmap for growth, the stock’s strong foundation and attractive upside potential warrant serious and timely consideration—particularly for those seeking a balanced blend of capital appreciation and income in the financial sector.
Ultimately, MTB’s disciplined approach, strategic flexibility, and compelling technical setup suggest that this may indeed be one of the most promising entry points for investors positioning for the next leg higher in the U.S. regional banking landscape.
How to buy M&T Bank stock in United States?
Buying M&T Bank stock online is both simple and secure when you go through a regulated broker. As an investor, you have two main ways to gain exposure: direct spot buying of shares or trading via Contracts for Difference (CFDs). Each method has its own benefits, depending on your approach and risk appetite. Below, we break down these two strategies so you can make an informed choice. To help you compare brokers and choose the one that fits your investment needs, you’ll find a comprehensive broker comparison further down the page.
Spot Buying
Spot buying means purchasing real M&T Bank shares in your name through an online brokerage account. This is a straightforward way to invest, as you own the actual stock and may be entitled to dividends. Brokerages typically charge a fixed commission per trade, often around $5 per order.
Example
Suppose M&T Bank stock is trading at $150 per share. With $1,000, after accounting for a $5 brokerage fee, you can buy approximately 6 shares ($1,000 - $5 = $995; $995 / $150 ≈ 6.6 shares).
✔️ Gain Scenario
If the share price increases by 10% to $165, your 6 shares are now worth $990 ($165 × 6), compared to your original investment of $900 (excluding fees). This represents a gross gain of $90, or +10% on your investment.
Trading via CFDs
CFD trading allows you to speculate on M&T Bank’s share price movements without owning the actual shares. CFDs are leveraged products, letting you open positions that are larger than your initial stake. With CFDs, brokers typically charge a spread (the difference between bid and ask prices), and overnight financing fees apply if you hold positions over multiple days.
Example
You decide to trade $1,000 on M&T Bank via CFDs with 5x leverage, giving you market exposure of $5,000.
✔️ Gain Scenario
If the stock price rises by 8%, your position increases by 8% × 5 = 40%. That’s a $400 gain on your $1,000 stake (excluding any spreads or overnight fees).
Final Advice
Before you invest, it’s important to compare each broker’s fees, trade execution quality, and account conditions. Your choice between spot buying and CFD trading should reflect both your investment goals and your risk profile. To make the best decision, consult the detailed broker comparison available further down this page. Remember, investing with confidence starts with being well-informed.
Our 7 tips for buying M&T Bank stock
| 📊 Step | 📝 Specific tip for M&T Bank |
|---|---|
| Analyze the market | Review the recent performance of U.S. regional banks, especially regulatory trends and the interest rate environment, as these significantly impact M&T Bank’s earnings. |
| Choose the right trading platform | Use a U.S.-based brokerage that provides access to NYSE stocks, low commission rates, and robust research tools for banking sector analysis. |
| Define your investment budget | Allocate a conservative portion of your portfolio to M&T Bank and balance it with exposure to other financial and non-financial sectors for diversification. |
| Choose a strategy (short or long term) | Consider a long-term strategy to take advantage of M&T Bank’s steady dividend history and its resilience in the regional banking landscape. |
| Monitor news and financial results | Track key indicators like M&T Bank’s net interest income, loan growth, and credit quality updates in earnings releases and financial news. |
| Use risk management tools | Set stop-loss or limit orders to protect against sharp downturns in banking stocks, and regularly reassess your investment goals in line with M&T Bank’s performance. |
| Sell at the right time | Evaluate potential exit points following significant share price rallies, changes in Federal Reserve policy, or shifts in the regional banking environment affecting M&T Bank. |
The latest news about M&T Bank
M&T Bank reported second-quarter 2024 earnings that exceeded analyst expectations, signaling operational strength. On July 18, 2024, M&T Bank released its financial results for Q2 2024, posting earnings per share of $4.12, surpassing consensus estimates set at $3.90. The higher-than-expected profits are attributed to effective cost controls and a solid performance in its commercial lending segment, backed by resilient regional economic conditions. Management reaffirmed full-year guidance, emphasizing a stable credit environment and strong execution in core banking operations.
The bank announced a quarterly cash dividend, reflecting commitment to shareholder returns and financial stability. On July 16, 2024, M&T Bank’s Board of Directors declared a regular quarterly cash dividend of $1.30 per common share, payable on September 30, 2024, to shareholders of record as of September 3, 2024. This marks the continuation of a consistent capital return policy, reassuring investors of the bank’s solid capitalization and healthy liquidity position, even amid industry-wide pressures from rising funding costs.
Regulatory updates show M&T Bank maintaining strong capital ratios and risk management discipline. In the wake of recent Federal Reserve stress test results released on June 28, 2024, and subsequent updates by M&T, the bank continues to exceed regulatory capital requirements, with a Common Equity Tier 1 (CET1) ratio of 10.3% as of June 30, 2024. The robust capital position reflects M&T’s prudent balance sheet management and successful navigation of evolving regulatory expectations in the U.S. banking sector.
Recent technology investments are improving customer experience and driving digital adoption among retail clients. During the July 2024 investor call, management highlighted expanded digital capabilities, including the rollout of enhanced mobile banking features and streamlined onboarding for new small business customers. These tech initiatives are aimed at deepening customer engagement, with preliminary internal metrics already indicating a notable uptick in digital transaction volumes and customer satisfaction scores across M&T’s East Coast footprint.
M&T Bank is expanding its community-focused lending and sustainability initiatives in its primary U.S. markets. This week, M&T announced increased financing commitments for affordable housing projects and new green lending programs targeting small businesses in New York, Pennsylvania, and Maryland. These strategic efforts align with both regional development priorities and broader environmental sustainability goals, further strengthening the bank’s local presence and reputation among regulators, clients, and investors.
FAQ
What is the latest dividend for M&T Bank stock?
M&T Bank currently pays a quarterly dividend. The most recent dividend declared was $1.30 per share, paid on June 28, 2024. The bank has a consistent record of dividend payments and has gradually increased its dividend over the past several years, reflecting its commitment to returning capital to shareholders. M&T Bank typically reviews its dividend policy annually in line with its profitability and financial strength.
What is the forecast for M&T Bank stock in 2025, 2026, and 2027?
Based on the current share price of approximately $149, projections for M&T Bank stock are: $193.70 at the end of 2025, $223.50 at the end of 2026, and $298 at the end of 2027. These outlooks reflect optimism in the U.S. banking sector, with M&T Bank benefiting from regional growth, consistent earnings, and a strong capital base. Analysts remain positive about its potential over the next several years as it delivers stable financial results.
Should I sell my M&T Bank shares?
Holding onto your M&T Bank shares could be a prudent choice, given the company’s solid fundamentals, reliable dividend payments, and strong regional presence. M&T Bank has weathered various market cycles, maintaining resilience and a focus on long-term value creation. The financial sector is showing steady recovery, and M&T’s strategic initiatives and historical performance suggest continued potential for growth. Given these fundamentals, holding may align well with mid- to long-term investment goals.
How are dividends from M&T Bank stock taxed for U.S. investors?
Dividends received from M&T Bank are generally considered qualified dividends for U.S. investors and are taxed at long-term capital gains tax rates, depending on your income bracket. You will receive a 1099-DIV form reflecting these distributions each year. Additionally, capital gains from selling M&T Bank shares are subject to U.S. capital gains tax, with specific rates based on how long the shares were held before sale.
What is the latest dividend for M&T Bank stock?
M&T Bank currently pays a quarterly dividend. The most recent dividend declared was $1.30 per share, paid on June 28, 2024. The bank has a consistent record of dividend payments and has gradually increased its dividend over the past several years, reflecting its commitment to returning capital to shareholders. M&T Bank typically reviews its dividend policy annually in line with its profitability and financial strength.
What is the forecast for M&T Bank stock in 2025, 2026, and 2027?
Based on the current share price of approximately $149, projections for M&T Bank stock are: $193.70 at the end of 2025, $223.50 at the end of 2026, and $298 at the end of 2027. These outlooks reflect optimism in the U.S. banking sector, with M&T Bank benefiting from regional growth, consistent earnings, and a strong capital base. Analysts remain positive about its potential over the next several years as it delivers stable financial results.
Should I sell my M&T Bank shares?
Holding onto your M&T Bank shares could be a prudent choice, given the company’s solid fundamentals, reliable dividend payments, and strong regional presence. M&T Bank has weathered various market cycles, maintaining resilience and a focus on long-term value creation. The financial sector is showing steady recovery, and M&T’s strategic initiatives and historical performance suggest continued potential for growth. Given these fundamentals, holding may align well with mid- to long-term investment goals.
How are dividends from M&T Bank stock taxed for U.S. investors?
Dividends received from M&T Bank are generally considered qualified dividends for U.S. investors and are taxed at long-term capital gains tax rates, depending on your income bracket. You will receive a 1099-DIV form reflecting these distributions each year. Additionally, capital gains from selling M&T Bank shares are subject to U.S. capital gains tax, with specific rates based on how long the shares were held before sale.
