Bank Of Montreal (NYSE:BMO) Sees Large Increase in Short Interest

Key Points

• Short interest surged: Short interest rose 24.1% in April to 5,228,631 shares (about 0.8% of shares), leaving a days-to-cover ratio of 8.6 days.
• Fundamentals remain solid: BMO topped quarterly expectations with $2.51 EPS (vs. $2.35 est.) and $7.21B revenue, and it pays a $1.67 quarterly dividend (annualized yield ~4.4%, DPR ~55.8%).
• Institutional buying notable: Several funds increased stakes—Qube Research added 411,108 shares and AQR boosted its position by 87.1%—and institutions/hedge funds own about 45.82% of the stock.

Bank Of Montreal (NYSE:BMO - Get Free Report) TSE: BMO was the target of a significant growth in short interest in the month of April. As of April 15th, there was short interest totaling 5,228,631 shares, a growth of 24.1% from the March 31st total of 4,212,589 shares. Approximately 0.8% of the shares of the company are sold short. Based on an average trading volume of 610,980 shares, the days-to-cover ratio is presently 8.6 days.

Institutional Investors Weigh In On Bank Of Montreal

Hedge funds have recently modified their holdings of the stock. AQR Capital Management LLC raised 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 in the last quarter. Arrowstreet Capital Limited Partnership purchased a new position in Bank Of Montreal in the second quarter worth $1,018,000. Cerity Partners LLC raised 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 in the last quarter. Qube Research & Technologies Ltd raised 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 in the last quarter. Finally, NewEdge Advisors LLC raised 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 in the last quarter. 45.82% of the stock is owned by institutional investors and hedge funds.

Bank Of Montreal Stock Performance

Shares of NYSE BMO traded up $0.53 during mid-day trading on Friday, hitting $152.63. 471,159 shares of the company were exchanged, compared to its average volume of 724,685. The company has a quick ratio of 1.02, a current ratio of 1.02 and a debt-to-equity ratio of 0.11. The stock has a 50 day simple moving average of $142.94 and a 200-day simple moving average of $134.99. Bank Of Montreal has a 1-year low of $97.00 and a 1-year high of $154.48. The firm has a market cap of $106.98 billion, a price-to-earnings ratio of 17.73, a price-to-earnings-growth ratio of 0.98 and a beta of 0.94.

Bank Of Montreal (NYSE:BMO - Get Free Report) TSE: BMO last issued its quarterly earnings results on Wednesday, February 25th. The bank reported $2.51 earnings per share for the quarter, topping the consensus estimate of $2.35 by $0.16. Bank Of Montreal had a return on equity of 12.16% and a net margin of 11.76%.The firm had revenue of $7.21 billion during the quarter, compared to the consensus estimate of $6.73 billion. During the same period last year, the company earned $3.04 earnings per share. The company's revenue for the quarter was up 6.0% on a year-over-year basis. On average, sell-side analysts forecast that Bank Of Montreal will post 10.2 EPS for the current fiscal year.

Bank Of Montreal Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, May 26th. Investors of record on Wednesday, April 29th will be issued a dividend of $1.67 per share. The ex-dividend date of this dividend is Wednesday, April 29th. This represents a $6.68 annualized dividend and a dividend yield of 4.4%. Bank Of Montreal's dividend payout ratio (DPR) is currently 55.75%.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently weighed in on the company. Scotiabank reissued a "sector perform" rating on shares of Bank Of Montreal in a report on Friday, January 9th. TD Securities raised Bank Of Montreal from a "hold" rating to a "buy" rating in a report on Tuesday, January 27th. Barclays downgraded Bank Of Montreal from an "equal weight" rating to an "underweight" rating in a report on Friday, March 20th. Wall Street Zen raised Bank Of Montreal from a "sell" rating to a "hold" rating in a report on Sunday, February 8th. Finally, Weiss Ratings reissued a "buy (b)" rating on shares of Bank Of Montreal in a report on Friday, April 17th. One analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $163.00.

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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