An Insider Bought Shares of M&T Bank

Page 1 of 2

A Form 4 filed with the SEC has disclosed that Richard King, a member of M&T Bank Corporation (NYSE:MTB)’s Board of Directors, directly purchased 1,250 shares of stock on March 12th at an average price of $104.17 per share. He now owns close to 18,000 shares of the stock. M&T Bank is a regional bank holding company concentrated in the mid-Atlantic region. Our database of insider trading filings shows that King had most recently bought shares at two points in August 2011: early in the month, when the stock was at about $80, and then at prices close to $70 towards the end of the month. M&T is up about 20% since the first of those purchases, about even with the market. Insider purchases are often considered bullish signals because the insider in question should be particularly confident in the company in order to ignore the benefits of diversification, and studies generally show a small outperformance effect. Read our analysis of studies on insider trading.

M&T Bank Corporation’s earnings rose 20% last year compared to 2011, buoyed by a particularly strong improvement in Q4 2012 relative to a year earlier. This is the result of a rise in net interest income as well as other sources of revenue, and was only partially offset by a small increase in compensation and other operating costs. The company’s trailing earnings multiple is 14, which puts it in value range in absolute terms but actually represents a more expensive valuation than what we see at many large banks. Perhaps oddly for a bank, M&T is actually close to being a defensive stock with a beta of 0.6 and a dividend yield of 2.7%. So perhaps we should think of it as being more insulated from the economy and performing well, and therefore being worth a premium to the megabanks.

Warren Buffett

We track 13F filings from hedge funds and other notable investors for a variety of purposes, including our work developing investment strategies based on the included information (for example, the most popular small cap stocks among hedge funds outperform the S&P 500 by an average of 18 percentage points per year). We can also use these filings to identify large holdings of M&T Bank Corporation. It turns out Warren Buffett is a fan of the stock: his Berkshire Hathaway reported owning 5.4 million shares at the end of December (see Buffett’s stock picks). Billionaire Ken Griffin’s Citadel Investment Group increased its stake in M&T Bank to a total of 1.3 million shares (find Griffin’s favorite stocks).

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Most Expensive States to Own a Car In

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top 6 Tax Scams and How to Protect Yourself

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!