Reaffirmation of BMO's Sector Perform Rating by Royal Bank of Canada

On Friday, equities researchers at Royal Bank of Canada restated their "sector perform" rating for Bank of Montreal (NYSE:BMO, TSE:BMO) in a recent report. They increased the price target for the bank's stock to $133.00, representing an increase from the previous target of $106.00. This revised target suggests a potential upside of approximately 34.01% based on the stock's last closing price.

In addition to Royal Bank of Canada’s evaluation, several other financial institutions have recently analyzed Bank of Montreal. For instance, Bank of America downgraded the stock from a "buy" rating to a "neutral" rating, lowering their price target from $134.00 to $117.00 as noted in a research report on August 28. Similarly, Jefferies Financial Group also shifted their rating from "buy" to "hold" shortly before on August 27. On August 29, StockNews.com revised their opinion, reducing Bank of Montreal from "hold" to a "sell" rating. Moreover, Barclays adjusted their price target down from $132.00 to $126.00 while maintaining an "overweight" rating.

Furthermore, TD Securities similarly downgraded their stance, moving from a "buy" rating to a "hold" rating as of August 27. Current data from MarketBeat.com shows that of the analysts covering Bank of Montreal, one has rated the stock as a sell, seven have given it a hold rating, and four have issued buy ratings. The average rating for the stock stands at "Hold," with an average price target of $122.40.

Current Price Performance of Bank of Montreal

As of Friday, Bank of Montreal opened at $99.25 per share. Over the past year, it has seen a low of $76.98 and reached a high of $100.12. The bank's financial metrics indicate a debt-to-equity ratio of 0.13, a quick ratio of 0.98, and a current ratio also at 0.98. As for its stock performance, the 50-day simple moving average is recorded at $93.07, and the 200-day simple moving average stands at $88.38. Presently, Bank of Montreal's market capitalization is valued at $72.41 billion, with a price-to-earnings (P/E) ratio of 15.63 and a P/E/G ratio of 2.59, alongside a beta of 1.10.

Institutional Investor Activity in Bank of Montreal

Recent activities from hedge funds reflect growing interest in Bank of Montreal. For example, the Healthcare of Ontario Pension Plan Trust Fund increased its holdings in the bank's shares by 261.6% during the third quarter, now holding 4,249,552 shares valued at approximately $383.45 million after acquiring an additional 3,074,389 shares. Similarly, the British Columbia Investment Management Corp raised their stake in the bank by 138.4% during the second quarter and now owns 4,851,629 shares valued at around $407.28 million.

Additionally, Toronto Dominion Bank grew its holdings by 14.9% in the same quarter, amassing a total of 11,812,353 shares worth $1.07 billion post-acquisition. JARISLOWSKY FRASER Ltd also increased their investment significantly, raising their stake by 36.9% to hold 5,239,662 shares valued at $439.71 million. Furthermore, International Assets Investment Management LLC entered the scene with a new position valued at approximately $80.92 million. Currently, 45.82% of Bank of Montreal's stock is owned by institutional investors and hedge funds.

A Snapshot of Bank of Montreal

The Bank of Montreal offers a range of diversified financial services primarily within North America. Its operations are divided into several segments: Canadian Personal and Commercial Banking, U.S. Personal and Commercial Banking, BMO Wealth Management, and BMO Capital Markets. The bank provides personal banking solutions including deposits, mortgages, home lending, and business lending services as well as financial, investment advice, and various commercial banking products including financing options, treasury services, and risk management solutions.

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