Bank Of Montreal (NYSE:BMO) Reaches New 52-Week High - Still a Buy?

Key Points

• Bank of Montreal reached a new 52-week high of $184.82, trading above its 50-day and 200-day moving averages. Its market capitalization is approximately $127.84 billion.
• Recent quarterly results exceeded expectations, with EPS of $2.68 versus the $2.54 consensus and revenue of $7.04 billion, up 10.2% year over year.
• The bank raised its quarterly dividend to $1.71, equivalent to an annualized $6.84 and a 3.7% yield. Despite institutional buying, analysts’ average rating remains Hold, with a consensus price target of $163—below the current share price.

Bank Of Montreal (NYSE:BMO - Get Free Report) TSE: BMO hit a new 52-week high during trading on Thursday . The stock traded as high as $184.82 and last traded at $183.2260, with a volume of 29444 shares. The stock had previously closed at $183.57.

Analyst Ratings Changes

Several equities analysts have issued reports on BMO shares. Zacks Research downgraded shares of Bank Of Montreal from a "strong-buy" rating to a "hold" rating in a report on Monday, April 27th. TD Securities reissued a "buy" rating on shares of Bank Of Montreal in a research note on Wednesday. Desjardins restated a "hold" rating on shares of Bank Of Montreal in a research report on Thursday, May 28th. Raymond James Financial reaffirmed an "outperform" rating on shares of Bank Of Montreal in a research note on Tuesday, May 12th. Finally, Barclays reiterated an "underweight" rating on shares of Bank Of Montreal in a report on Thursday, May 28th. Five analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, Bank Of Montreal presently has an average rating of "Hold" and a consensus price target of $163.00.

Bank Of Montreal Stock Performance

The company has a market cap of $127.84 billion, a price-to-earnings ratio of 19.48, a PEG ratio of 1.01 and a beta of 0.94. The firm's 50 day simple moving average is $175.62 and its 200-day simple moving average is $156.36. The company has a debt-to-equity ratio of 0.11, a quick ratio of 1.02 and a current ratio of 1.02.

Bank Of Montreal (NYSE:BMO - Get Free Report) TSE: BMO last issued its earnings results on Wednesday, May 27th. The bank reported $2.68 EPS for the quarter, beating analysts' consensus estimates of $2.54 by $0.14. The business had revenue of $7.04 billion during the quarter, compared to analysts' expectations of $6.98 billion. Bank Of Montreal had a net margin of 12.60% and a return on equity of 13.04%. The company's quarterly revenue was up 10.2% compared to the same quarter last year. During the same period in the prior year, the business earned $2.62 earnings per share. On average, sell-side analysts predict that Bank Of Montreal will post 11.81 EPS for the current year.

Bank Of Montreal Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, August 26th. Shareholders of record on Thursday, July 30th will be issued a $1.71 dividend. This represents a $6.84 dividend on an annualized basis and a yield of 3.7%. The ex-dividend date is Thursday, July 30th. This is a positive change from Bank Of Montreal's previous quarterly dividend of $1.67. Bank Of Montreal's payout ratio is currently 51.06%.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. Norges Bank purchased a new position in shares of Bank Of Montreal during the 4th quarter worth $1,059,320,000. Bank of Nova Scotia purchased a new stake in shares of Bank Of Montreal in the second quarter valued at about $920,002,000. Connor Clark & Lunn Investment Management Ltd. purchased a new stake in shares of Bank Of Montreal in the second quarter valued at about $677,074,000. Morgan Stanley increased its position in Bank Of Montreal by 74.4% during the fourth quarter. Morgan Stanley now owns 3,817,406 shares of the bank's stock worth $495,461,000 after purchasing an additional 1,628,318 shares during the last quarter. Finally, Deutsche Bank AG acquired a new stake in Bank Of Montreal during the second quarter worth about $235,791,000. 45.82% of the stock is currently owned by institutional investors and hedge funds.

About Bank Of Montreal

Bank of Montreal NYSE: BMO, commonly known as BMO Financial Group, is one of Canada's largest and longest-established banks. Founded in Montreal and headquartered in Montreal, Quebec, the bank provides a broad range of financial services to retail, commercial, corporate and institutional clients. BMO is publicly listed in both Canada and the United States and operates under a consolidated financial services model that integrates banking, capital markets, wealth management and asset management activities.

BMO's core businesses include personal and commercial banking—offering checking and savings accounts, lending, mortgages, and small-business services—alongside wealth management and private banking through its asset and investment management divisions.

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