Bank of Montreal Experiences Significant Rise in Short Interest

The Bank of Montreal (NYSE:BMO - Get Free Report) saw a notable increase in short interest during March. As of March 15th, the total short interest was 7,520,000 shares, marking a 45.2% rise from the 5,180,000 shares reported on February 28th. Currently, 1.0% of the company’s shares have been sold short. With an average daily trading volume of 602,800 shares, the days-to-cover ratio stands at 12.5 days.

Changes in Institutional Holdings for Bank of Montreal

Recently, several institutional investors have adjusted their holdings in Bank of Montreal. IFP Advisors Inc increased its stake by 179.5% in the last quarter, now owning 313 shares valued at $30,000 after acquiring an additional 201 shares. Additionally, Addison Advisors LLC raised its holdings by 282.8%, resulting in ownership of 333 shares worth $32,000 after purchasing 246 more shares during the same period. Vision Financial Markets LLC and Dunhill Financial LLC each purchased new stakes in Bank of Montreal, valued at about $39,000. Wilmington Savings Fund Society FSB also bought a new stake valued at $45,000 in the third quarter. Overall, hedge funds and institutional investors hold about 45.82% of the stock.

Bank of Montreal Stock Performance

On the market, NYSE:BMO fell by 1.8%, closing at $95.26 on a recent Friday. A total of 588,322 shares were traded, less than the average volume of 851,849 shares. The company's fifty-day simple moving average is $99.30, while the 200-day simple moving average is $95.89. Bank of Montreal has a market capitalization of $69.26 billion, with a price-to-earnings ratio of 13.65 and a PEG ratio of 1.43. In the last year, the company's stock has had a low of $76.98 and a high of $106.00. Current ratios for the company are 0.98, and its debt-to-equity ratio stands at 0.11.

Recent Earnings Announcement

Bank of Montreal released its quarterly earnings on February 25th, reporting earnings per share of $3.04, exceeding the consensus estimate of $1.68 by $1.36. The revenue for the quarter was $9.27 billion, outperforming the estimated $8.58 billion. The bank posted a net margin of 9.22% and a return on equity of 10.18%, with quarterly revenue reflecting a 20.8% increase compared to the same quarter the previous year. Analysts expect the bank to report an EPS of 7.71 for the current fiscal year.

Dividend Announcement from Bank of Montreal

Recently, the bank declared a quarterly dividend to be paid on May 27th for stockholders recorded on April 29th, amounting to a dividend of $1.1094. This translates to an annualized dividend of $4.44, offering a yield of 4.66%. The ex-dividend date falls on April 29th, and the current dividend payout ratio is 57.09%.

Analysts' Perspective on Future Growth

Bank of Montreal has received various insights from analysts. StockNews.com upgraded its rating from “sell” to “hold” on February 28th. Scotiabank shifted their rating from “sector perform” to “sector outperform” in December. Moreover, Royal Bank of Canada raised its price target for the bank’s stock from $161.00 to $163.00, giving it an “outperform” rating. Analysts have generally rated the stock positively, with seven suggesting a hold, four a buy, and one a strong buy preference, leading to a consensus rating of "Moderate Buy" and an average target price of $128.40.

Overview of Bank of Montreal

Bank of Montreal offers a wide range of financial services primarily in North America. Its operations include Canadian P&C, U.S. P&C, BMO Wealth Management, and BMO Capital Markets. The bank provides various personal banking services such as deposits, mortgages, consumer credit, and small business loans, as well as commercial banking products covering financing solutions and treasury management.

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