Bank of Montreal (NYSE:BMO) Experiences Surge in Short Interest

Bank of Montreal (NYSE:BMO) has noticed a notable rise in short interest throughout March. As of March 15th, the total short interest amounted to 7,520,000 shares, reflecting a substantial increase of 45.2% compared to the 5,180,000 shares recorded on February 28th. Currently, around 1.0% of the company's shares are sold short. Given the average daily trading volume of 602,800 shares, the short-interest ratio is approximately 12.5 days.

Institutional Investors Adjust Their BMO Holdings

Recently, multiple institutional investors have altered their investments in BMO. IFP Advisors Inc significantly increased its stake in Bank of Montreal by 179.5% during the fourth quarter, now holding 313 shares valued at $30,000 after buying an additional 201 shares. Likewise, Addison Advisors LLC raised its holdings in BMO by 282.8% during the same period, now owning 333 shares worth $32,000 after purchasing an extra 246 shares. Vision Financial Markets LLC and Dunhill Financial LLC also acquired new stakes in Bank of Montreal during the fourth quarter, each valued at approximately $39,000. Wilmington Savings Fund Society FSB made a similar investment of about $45,000 in the third quarter. In total, institutional investors hold about 45.82% of the stock.

Recent Stock Performance

On Friday, shares of NYSE:BMO declined by $1.77, closing at $95.26. The trading volume reached 588,322 shares, which is below the average volume of 851,849 shares. Currently, the company's 50-day simple moving average stands at $99.30, while the 200-day moving average is $95.89. With a market capitalization of $69.26 billion, BMO has a price-to-earnings ratio of 13.65, a PEG ratio of 1.43, and a beta of 1.07. The stock has experienced a low of $76.98 and a high of $106.00 in the past year.

Quarterly Earnings Announcement

Bank of Montreal recently reported its quarterly earnings on February 25th. The bank achieved earnings of $3.04 per share, surpassing the consensus estimate of $1.68 by a significant margin of $1.36. The total revenue for the quarter reached $9.27 billion, exceeding the expected $8.58 billion. The bank's net margin stood at 9.22%, with a return on equity of 10.18%. This revenue reflects a 20.8% increase compared to the same quarter last year, where it reported earnings of $2.56 per share. Analysts project that Bank of Montreal will report earnings per share (EPS) of 7.71 for the current fiscal year.

Dividend Cut Announcement

Bank of Montreal has also declared its quarterly dividend, set to be paid on May 27th. Shareholders registered on April 29th will receive a dividend of $1.1094, amounting to an annualized dividend of $4.44, resulting in a dividend yield of 4.66%. The ex-dividend date to watch for is April 29th, and currently, the bank's dividend payout ratio is 57.09%.

Analysts Outlook and Ratings

Bank of Montreal has been featured in various research reports. StockNews.com upgraded BMO from a "sell" rating to a "hold" rating on February 28th. Scotiabank elevated the stock's status from "sector perform" to "sector outperform" in a note from December 6th. Royal Bank of Canada increased their target price for BMO from $161.00 to $163.00 with an "outperform" rating on February 26th. Additionally, CIBC World Markets has upgraded BMO ratings multiple times. Currently, seven research analysts suggest a hold rating, four recommend a buy, and one offers a strong buy, which gives BMO a consensus rating of "Moderate Buy" with an average price target of $128.40.

About Bank of Montreal

Bank of Montreal is a diversified financial services provider primarily operating in North America. Its segments include Canadian Personal and Commercial Banking, U.S. Personal and Commercial Banking, BMO Wealth Management, and BMO Capital Markets. The bank's offerings cover a wide range of personal banking products such as deposits, mortgages, consumer credit, and commercial banking services, including financing options and risk management products.

Bank, Montreal, Stocks