Bank of Montreal (NYSE:BMO) Sees Large Increase in Short Interest

The Bank of Montreal (NYSE:BMO) has experienced a notable rise in short interest during March. As of March 15th, the total short interest reached 7,520,000 shares, marking a significant increase of 45.2% from the previous total of 5,180,000 shares recorded on February 28th. Presently, around 1.0% of the bank's shares are sold short. With an average daily trading volume of 602,800 shares, the days-to-cover ratio stands at 12.5 days.

Institutional Investors Adjust Holdings in Bank of Montreal

Recently, several institutional investors have made adjustments to their holdings in BMO. For instance, IFP Advisors Inc increased its stake in the Bank of Montreal by an impressive 179.5% during the fourth quarter, now owning 313 shares valued at approximately $30,000 after acquiring an additional 201 shares. Additionally, Addison Advisors LLC expanded its holdings by 282.8%, now possessing 333 shares worth about $32,000 after purchasing 246 more shares. New stakes were also established by Vision Financial Markets LLC and Dunhill Financial LLC, each worth approximately $39,000. Moreover, Wilmington Savings Fund Society FSB acquired a new stake valued at around $45,000 in the third quarter. Overall, hedge funds and institutional investors own approximately 45.82% of the bank's stock.

Bank of Montreal Stock Update

On the trading front, NYSE:BMO saw a decline of 1.8% on Friday, falling to $95.26. During the trading session, 588,322 shares exchanged hands, below the average volume of 851,849. The stock's fifty-day simple moving average is $99.30, while its 200-day moving average is $95.89. Currently, the market capitalization of Bank of Montreal stands at $69.26 billion, with a price-to-earnings ratio of 13.65, a PEG ratio of 1.43, and a beta of 1.07. The bank's stock has ranged between a 12-month low of $76.98 and a high of $106.00, with financial ratios indicating a current ratio of 0.98, a quick ratio of 0.98, and a debt-to-equity ratio of 0.11.

Quarterly Earnings Review

In its latest quarterly earnings report, released on February 25th, Bank of Montreal announced earnings of $3.04 per share, exceeding the consensus estimate of $1.68 by a notable $1.36. The reported revenue for the quarter was $9.27 billion, surpassing expectations of $8.58 billion. The bank's net margin was recorded at 9.22%, alongside a return on equity of 10.18%. Year-over-year, quarterly revenue increased by 20.8%; a year ago, the bank reported earnings of $2.56 per share. Analysts forecast that Bank of Montreal may post earnings per share (EPS) of 7.71 for the current fiscal year.

Dividend Announcement

In addition, Bank of Montreal has declared a quarterly dividend, set to be paid on May 27th. Shareholders who are on record as of April 29th will receive a dividend of $1.1094. This translates to an annualized dividend of $4.44, indicating a dividend yield of 4.66%. The ex-dividend date is also set for April 29th. Currently, the bank's dividend payout ratio stands at 57.09%.

Analysts Provide Outlook

Bank of Montreal has recently been the focus of various research reports. StockNews.com increased the rating of Bank of Montreal shares from "sell" to "hold" as of February 28th. Additionally, Scotiabank upgraded the rating from "sector perform" to "sector outperform". Royal Bank of Canada adjusted its target price from $161.00 to $163.00, giving the stock an "outperform" rating. Cibc World Markets upgraded BMO from "hold" to "strong buy", while CIBC shifted its rating from "neutral" to "sector outperform". Currently, seven research analysts classify the stock with a hold rating, while four rate it as a buy, and one analyst issues a strong buy rating. The consensus rating stands at "Moderate Buy" with an average price target of $128.40.

About Bank of Montreal

The Bank of Montreal provides a wide range of financial services across North America. It operates through various segments, including Canadian P&C, U.S. P&C, BMO Wealth Management, and BMO Capital Markets. Its personal banking services encompass a variety of products such as deposits, mortgages, consumer credit, small business lending, and other banking services. The bank also offers commercial banking products and services, which include financing options, treasury and payment solutions, as well as risk management products.

Bank, Finance, Earnings