Bank of America Corp DE Buys New Stake in Bank Of Montreal $BMO

Key Points

• Bank of America Corp. DE acquired 588,633 shares of Bank of Montreal in the second quarter, worth approximately $104 million and representing about 0.08% of the bank.
• Institutional ownership remains significant at 45.82%, with several major investors—including Canada Pension Plan Investment Board and Caisse de dépôt et placement du Québec—also establishing or increasing positions.
• Bank of Montreal exceeded quarterly earnings expectations, reporting $2.84 in EPS and $7.10 billion in revenue. Analysts’ consensus rating is “Hold,” while the bank announced a quarterly dividend of $1.71 per share, implying a 3.9% annualized yield.

Bank of America Corp DE purchased a new stake in Bank Of Montreal (NYSE:BMO - Free Report) TSE: BMO during the second quarter, according to its most recent filing with the SEC. The fund purchased 588,633 shares of the bank's stock, valued at approximately $104,012,000. Bank of America Corp DE owned about 0.08% of Bank Of Montreal as of its most recent filing with the SEC.

Other hedge funds have also bought and sold shares of the company. TD Asset Management Inc boosted its stake in Bank Of Montreal by 1.5% during the fourth quarter. TD Asset Management Inc now owns 19,372,601 shares of the bank's stock valued at $2,519,180,000 after buying an additional 293,575 shares during the last quarter. Norges Bank bought a new stake in shares of Bank Of Montreal in the 4th quarter worth about $1,059,320,000. Canada Pension Plan Investment Board bought a new stake in shares of Bank Of Montreal in the 2nd quarter worth about $1,281,220,000. Geode Capital Management LLC raised its position in shares of Bank Of Montreal by 6.7% during the 4th quarter. Geode Capital Management LLC now owns 7,030,219 shares of the bank's stock valued at $932,242,000 after buying an additional 442,812 shares in the last quarter. Finally, Caisse de depot et placement du Quebec purchased a new stake in shares of Bank Of Montreal during the 2nd quarter valued at about $957,549,000. Hedge funds and other institutional investors own 45.82% of the company's stock.

Wall Street Analyst Weigh In

Several research analysts recently commented on the company. TD Securities reiterated a "buy" rating on shares of Bank Of Montreal in a research report on Wednesday, August 12th. Scotiabank reiterated an "outperform" rating on shares of Bank Of Montreal in a report on Wednesday, August 26th. Weiss Ratings downgraded Bank Of Montreal from a "buy (b+)" rating to a "buy (b)" rating in a research report on Thursday, July 23rd. Canadian Imperial Bank of Commerce lowered Bank Of Montreal from a "sector outperform" rating to a "neutral" rating in a report on Tuesday, August 18th. Finally, Royal Bank Of Canada reaffirmed a "sector perform" rating on shares of Bank Of Montreal in a research note on Thursday, August 27th. Five equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus price target of $163.00.

Bank Of Montreal Price Performance

Shares of NYSE BMO opened at $174.62 on Friday. Bank Of Montreal has a fifty-two week low of $119.84 and a fifty-two week high of $187.22. The company has a market cap of $121.38 billion, a PE ratio of 19.71, a P/E/G ratio of 0.92 and a beta of 0.93. The company has a debt-to-equity ratio of 0.10, a quick ratio of 1.01 and a current ratio of 1.01. The business has a 50-day simple moving average of $177.39 and a two-hundred day simple moving average of $162.55.

Bank Of Montreal (NYSE:BMO - Get Free Report) TSE: BMO last released its earnings results on Tuesday, August 25th. The bank reported $2.84 EPS for the quarter, topping analysts' consensus estimates of $2.71 by $0.13. The company had revenue of $7.10 billion during the quarter, compared to analysts' expectations of $6.94 billion. Bank Of Montreal had a net margin of 11.72% and a return on equity of 13.60%. Bank Of Montreal's revenue for the quarter was up 10.1% on a year-over-year basis. During the same period last year, the business earned $3.23 EPS. As a group, equities analysts expect that Bank Of Montreal will post 12.13 EPS for the current fiscal year.

Bank Of Montreal Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, November 26th. Shareholders of record on Friday, October 30th will be paid a dividend of $1.71 per share. This represents a $6.84 annualized dividend and a yield of 3.9%. The ex-dividend date is Friday, October 30th. Bank Of Montreal's payout ratio is presently 54.29%.

About Bank Of Montreal

Bank of Montreal, operating under the BMO Financial Group brand, is a diversified financial services company headquartered in Montreal, Quebec. Founded in 1817, it is one of Canada's largest banks and serves individuals, businesses, institutions and governments through operations in Canada and the United States.

BMO's personal and commercial banking businesses provide deposit accounts, mortgages, consumer lending, credit cards, investment products and financial planning services. The bank also offers commercial lending, treasury management and other banking solutions to businesses of various sizes.

Through BMO Wealth Management, the company provides investment management, private banking, financial planning and related advisory services.

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