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

Bank of Montreal (NYSE:BMO) (TSE:BMO) saw a large increase in short interest during the month of July. As of July 15th, there was short interest totalling 8,660,000 shares, an increase of 102.8% from the June 30th total of 4,270,000 shares. Based on an average daily trading volume, of 923,200 shares, the days-to-cover ratio is presently 9.4 days. Approximately 1.2% of the shares of the company are sold short.

Bank of Montreal Stock Performance

Bank of Montreal stock traded up $0.35 during midday trading on Friday, hitting $87.33. The company’s stock had a trading volume of 5,031,967 shares, compared to its average volume of 914,745. The company has a debt-to-equity ratio of 0.12, a current ratio of 0.99 and a quick ratio of 0.99. The company has a market cap of $63.70 billion, a price-to-earnings ratio of 14.51, a PEG ratio of 2.16 and a beta of 1.12. Bank of Montreal has a 1-year low of $73.98 and a 1-year high of $100.12. The company has a 50-day moving average price of $86.89 and a two-hundred day moving average price of $91.46.

Bank of Montreal (NYSE:BMO) (TSE:BMO) last released its quarterly earnings results on Wednesday, May 29th. The bank reported $1.91 earnings per share for the quarter, missing analysts’ consensus estimates of $2.01 by ($0.10). The business had revenue of $5.88 billion during the quarter, compared to analyst estimates of $5.96 billion. Bank of Montreal had a net margin of 8.25% and a return on equity of 11.60%. As a group, sell-side analysts predict that Bank of Montreal will post 7.91 earnings per share for the current year.

Bank of Montreal Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, August 27th. Stockholders of record on Tuesday, July 30th will be given a dividend of $1.125 per share. This represents a $4.50 dividend on an annualized basis and a dividend yield of 5.15%. This is an increase from Bank of Montreal’s previous quarterly dividend of $1.12. The ex-dividend date is Tuesday, July 30th. Bank of Montreal’s dividend payout ratio is presently 74.25%.

Wall Street Analyst Weigh In

Several analysts recently commented on BMO shares. Desjardins downgraded shares of Bank of Montreal from a “buy” rating to a “hold” rating in a report on Wednesday, May 29th. UBS Group assumed coverage on Bank of Montreal in a research report on Tuesday, July 2nd. They issued a “neutral” rating on the stock. Finally, Keefe, Bruyette & Woods cut Bank of Montreal from an “outperform” rating to a “market perform” rating and dropped their price target for the stock from $137.00 to $124.00 in a report on Monday, June 3rd. Four research analysts have rated the stock with a hold rating and four have assigned a buy rating to the company. According to data from MarketBeat.com, Bank of Montreal presently has a consensus rating of “Moderate Buy” and a consensus target price of $127.50.

Institutional Trading of Bank of Montreal

Several large investors have recently modified their holdings of the stock. Principal Securities Inc. bought a new stake in Bank of Montreal during the fourth quarter worth about $33,000. Cullen Frost Bankers Inc. lifted its holdings in shares of Bank of Montreal by 3,375.0% during the 4th quarter. Cullen Frost Bankers Inc. now owns 417 shares of the bank’s stock worth $41,000 after acquiring an additional 405 shares during the period. Headlands Technologies LLC acquired a new stake in shares of Bank of Montreal during the 4th quarter worth approximately $44,000. EverSource Wealth Advisors LLC increased its stake in Bank of Montreal by 39.0% in the fourth quarter. EverSource Wealth Advisors LLC now owns 463 shares of the bank’s stock valued at $46,000 after acquiring an additional 130 shares during the last quarter. Finally, IAG Wealth Partners LLC raised its position in Bank of Montreal by 117.5% during the fourth quarter. IAG Wealth Partners LLC now owns 496 shares of the bank’s stock valued at $49,000 after purchasing an additional 268 shares in the last quarter. 45.82% of the stock is owned by institutional investors and hedge funds.

About Bank of Montreal

Bank of Montreal provides diversified financial services primarily in North America. It operates through Canadian P&C, U.S P&C, BMO Wealth Management, and BMO Capital Markets segments. The company's personal banking products and services include deposits, mortgages, home lending, consumer credit, small business lending, credit cards, cash management, financial and investment advice, and other banking services; and commercial banking products and services comprise various of financing options and treasury and payment solutions, as well as risk management products.