Bank of Nova Scotia Purchases Shares of 5,205,604 Bank Of Montreal $BMO

Key Points

• Bank of Nova Scotia acquired 5.21 million BMO shares worth approximately $920 million, representing about 0.75% of Bank of Montreal and 1.4% of Scotiabank’s portfolio.
• BMO reported quarterly EPS of $2.68, beating estimates of $2.54, while revenue rose 10.2% year over year to $7.04 billion.
• BMO increased its quarterly dividend to $1.71 per share, or $6.84 annually, implying a 3.9% yield; analysts’ consensus rating remains “Hold,” with a $163 price target.

Bank of Nova Scotia acquired a new stake in shares of Bank Of Montreal (NYSE:BMO - Free Report) TSE: BMO in the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor acquired 5,205,604 shares of the bank's stock, valued at approximately $920,002,000. Bank Of Montreal comprises about 1.4% of Bank of Nova Scotia's portfolio, making the stock its 14th largest holding. Bank of Nova Scotia owned about 0.75% of Bank Of Montreal at the end of the most recent reporting period.

A number of other hedge funds have also modified their holdings of the stock. AQR Capital Management LLC raised its holdings in Bank Of Montreal by 87.1% during the 1st quarter. AQR Capital Management LLC now owns 5,742 shares of the bank's stock worth $548,000 after buying an additional 2,673 shares during the period. Arrowstreet Capital Limited Partnership purchased a new position in shares of Bank Of Montreal in the second quarter worth approximately $1,018,000. Cerity Partners LLC increased its position in shares of 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 holdings in shares of Bank Of Montreal by 166.3% during the second quarter. Qube Research & Technologies Ltd now owns 411,108 shares of the bank's stock valued at $45,518,000 after acquiring an additional 256,755 shares during the period. Finally, NewEdge Advisors LLC lifted its position in shares of Bank Of Montreal by 5,614.3% in the 2nd quarter. NewEdge Advisors LLC now owns 2,800 shares of the bank's stock valued at $310,000 after acquiring an additional 2,751 shares in the last quarter. 45.82% of the stock is currently owned by institutional investors and hedge funds.

Bank Of Montreal Stock Performance

Shares of BMO stock opened at $174.34 on Friday. The company has a debt-to-equity ratio of 0.11, a current ratio of 1.02 and a quick ratio of 1.02. Bank Of Montreal has a fifty-two week low of $112.58 and a fifty-two week high of $187.22. The stock's 50-day moving average is $177.66 and its two-hundred day moving average is $158.29. The firm has a market cap of $121.54 billion, a P/E ratio of 18.51, a PEG ratio of 1.09 and a beta of 0.94.

Bank Of Montreal (NYSE:BMO - Get Free Report) TSE: BMO last announced its quarterly earnings results on Wednesday, May 27th. The bank reported $2.68 EPS for the quarter, beating the consensus estimate of $2.54 by $0.14. Bank Of Montreal had a return on equity of 13.04% and a net margin of 12.60%.The business had revenue of $7.04 billion during the quarter, compared to analysts' expectations of $6.98 billion. During the same quarter in the previous year, the business posted $2.62 EPS. The firm's quarterly revenue was up 10.2% compared to the same quarter last year. Analysts predict that Bank Of Montreal will post 10.49 earnings per share for the current fiscal year.

Bank Of Montreal Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, August 26th. Stockholders of record on Thursday, July 30th will be paid a dividend of $1.71 per share. This is a boost from Bank Of Montreal's previous quarterly dividend of $1.67. The ex-dividend date is Thursday, July 30th. This represents a $6.84 annualized dividend and a dividend yield of 3.9%. Bank Of Montreal's dividend payout ratio is currently 51.06%.

Wall Street Analysts Forecast Growth

BMO has been the subject of a number of recent analyst reports. TD Securities reaffirmed a "buy" rating on shares of Bank Of Montreal in a research note on Wednesday, August 12th. Weiss Ratings downgraded shares of Bank Of Montreal from a "buy (b+)" rating to a "buy (b)" rating in a research note on Thursday, July 23rd. Desjardins restated a "hold" rating on shares of Bank Of Montreal in a report on Thursday, May 28th. Keefe, Bruyette & Woods started coverage on Bank Of Montreal in a report on Friday. They set an "outperform" rating on the stock. Finally, Scotiabank reissued an "outperform" rating on shares of Bank Of Montreal in a research report on Tuesday, June 16th. Five equities research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, Bank Of Montreal currently has a consensus rating of "Hold" and a consensus price target 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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