Bank Of Montreal (NYSE:BMO) Issues Earnings Results

Key Points

• Bank Of Montreal reported earnings of $2.33 per share for the quarter, exceeding analysts' expectations of $2.07.
• The bank announced an increase in its quarterly dividend to $1.63 per share, up from $1.18, representing an annualized yield of 5.7%.
• Institutional investors currently hold 45.82% of Bank Of Montreal's stock, with recent increases in holdings from various firms during the second quarter.

Bank Of Montreal (NYSE:BMO - Get Free Report) TSE: BMO issued its quarterly earnings results on Tuesday. The bank reported $2.33 EPS for the quarter, topping analysts' consensus estimates of $2.12 by $0.21, Zacks reports. Bank Of Montreal had a return on equity of 10.57% and a net margin of 11.00%.The company had revenue of $6.51 billion during the quarter, compared to analysts' expectations of $8.84 billion. During the same quarter in the previous year, the firm posted $2.64 EPS. The firm's revenue was up 9.7% compared to the same quarter last year.

Bank Of Montreal Price Performance

NYSE:BMO traded up $1.89 during trading hours on Friday, hitting $121.09. 887,113 shares of the stock were exchanged, compared to its average volume of 607,348. Bank Of Montreal has a 52-week low of $81.69 and a 52-week high of $121.17. The firm's fifty day moving average price is $113.05 and its 200 day moving average price is $104.16. The company has a current ratio of 1.00, a quick ratio of 1.00 and a debt-to-equity ratio of 0.11. The company has a market cap of $86.75 billion, a P/E ratio of 14.82, a P/E/G ratio of 1.23 and a beta of 1.07.

Bank Of Montreal Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, November 26th. Shareholders of record on Thursday, October 30th will be paid a dividend of $1.63 per share. This is an increase from Bank Of Montreal's previous quarterly dividend of $1.18. The ex-dividend date is Thursday, October 30th. This represents a $6.52 annualized dividend and a yield of 5.4%. Bank Of Montreal's dividend payout ratio (DPR) is presently 58.63%.

Analyst Ratings Changes

A number of brokerages have commented on BMO. Cowen reaffirmed a "hold" rating on shares of Bank Of Montreal in a research report on Wednesday. Barclays cut Bank Of Montreal from an "overweight" rating to an "equal weight" rating in a report on Monday, June 9th. Scotiabank reissued a "sector perform" rating on shares of Bank Of Montreal in a report on Wednesday. UBS Group reissued a "neutral" rating on shares of Bank Of Montreal in a report on Wednesday. Finally, Wall Street Zen cut Bank Of Montreal from a "hold" rating to a "sell" rating in a report on Saturday. Two investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of "Hold" and an average price target of $168.00.

Institutional Investors Weigh In On Bank Of Montreal

A number of large investors have recently made changes to their positions in the stock. AQR Capital Management LLC grew its position in Bank Of Montreal by 87.1% in the first quarter. AQR Capital Management LLC now owns 5,742 shares of the bank's stock worth $548,000 after acquiring an additional 2,673 shares during the period. Arrowstreet Capital Limited Partnership purchased a new position in Bank Of Montreal in the second quarter worth approximately $1,018,000. Cerity Partners LLC grew its position in Bank Of Montreal by 1.4% in the second quarter. Cerity Partners LLC now owns 12,364 shares of the bank's stock worth $1,368,000 after acquiring an additional 167 shares during the period. Qube Research & Technologies Ltd grew its position in Bank Of Montreal by 166.3% in the second quarter. Qube Research & Technologies Ltd now owns 411,108 shares of the bank's stock worth $45,518,000 after acquiring an additional 256,755 shares during the period. Finally, NewEdge Advisors LLC grew its position in Bank Of Montreal by 5,614.3% in the second quarter. NewEdge Advisors LLC now owns 2,800 shares of the bank's stock worth $310,000 after acquiring an additional 2,751 shares during the period. 45.82% of the stock is currently owned by hedge funds and other institutional investors.

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.