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

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Most Famous Gay Athletes

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

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 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!