Bank of Nova Scotia Trims Stock Position in Bank Of Montreal $BMO

Key Points

• Bank of Nova Scotia cut its stake in Bank of Montreal by 15.6% in the first quarter, selling 932,886 shares and leaving it with 5.03 million shares worth about $681.5 million.
• Bank of Montreal reported better-than-expected quarterly earnings of $2.68 per share on revenue of $7.04 billion, while revenue rose 10.2% year over year.
• The bank also raised its quarterly dividend to $1.71 per share, implying a 3.9% yield and an annualized payout of $6.84.

Bank of Nova Scotia trimmed its holdings in Bank Of Montreal (NYSE:BMO - Free Report) TSE: BMO by 15.6% during the 1st quarter, according to the company in its most recent Form 13F filing with the SEC. The fund owned 5,032,483 shares of the bank's stock after selling 932,886 shares during the quarter. Bank Of Montreal accounts for approximately 1.1% of Bank of Nova Scotia's investment portfolio, making the stock its 15th biggest holding. Bank of Nova Scotia owned 0.72% of Bank Of Montreal worth $681,462,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. WFA of San Diego LLC acquired a new stake in Bank Of Montreal during the second quarter worth about $28,000. Annis Gardner Whiting Capital Advisors LLC purchased a new stake in Bank Of Montreal in the 4th quarter worth approximately $29,000. Larson Financial Group LLC boosted its position in Bank Of Montreal by 466.7% in the 3rd quarter. Larson Financial Group LLC now owns 238 shares of the bank's stock worth $31,000 after purchasing an additional 196 shares in the last quarter. Flagship Harbor Advisors LLC acquired a new stake in shares of Bank Of Montreal during the 4th quarter worth approximately $34,000. Finally, Swiss RE Ltd. acquired a new stake in shares of Bank Of Montreal during the 4th quarter worth approximately $38,000. 45.82% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

BMO has been the subject of several analyst reports. TD Securities reiterated a "buy" rating on shares of Bank Of Montreal in a research note on Thursday, May 28th. Canadian Imperial Bank of Commerce reaffirmed an "outperform" rating on shares of Bank Of Montreal in a report on Thursday, May 28th. Raymond James Financial reiterated an "outperform" rating on shares of Bank Of Montreal in a research report on Tuesday, May 12th. Desjardins reissued a "hold" rating on shares of Bank Of Montreal in a research note on Thursday, May 28th. Finally, Barclays restated an "underweight" rating on shares of Bank Of Montreal in a research report on Thursday, May 28th. Five analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Hold" and an average price target of $163.00.

Bank Of Montreal Price Performance

Bank Of Montreal stock opened at $176.57 on Friday. The company has a fifty day simple moving average of $170.01 and a 200-day simple moving average of $151.86. The firm has a market capitalization of $123.67 billion, a price-to-earnings ratio of 18.74, a PEG ratio of 1.00 and a beta of 0.93. The company has a quick ratio of 1.02, a current ratio of 1.02 and a debt-to-equity ratio of 0.11. Bank Of Montreal has a 52-week low of $109.64 and a 52-week high of $184.21.

Bank Of Montreal (NYSE:BMO - Get Free Report) TSE: BMO last posted its quarterly earnings results on Wednesday, May 27th. The bank reported $2.68 earnings per share for the quarter, topping the consensus estimate of $2.54 by $0.14. Bank Of Montreal had a net margin of 12.60% and a return on equity of 13.04%. The firm had revenue of $7.04 billion for the quarter, compared to the consensus estimate of $6.98 billion. During the same period last year, the firm posted $2.62 earnings per share. The company's revenue for the quarter was up 10.2% on a year-over-year basis. On average, equities analysts anticipate that Bank Of Montreal will post 11.82 EPS for the current fiscal year.

Bank Of Montreal Increases Dividend

The business also recently announced 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 annualized dividend and a yield of 3.9%. The ex-dividend date is Thursday, July 30th. This is an increase from Bank Of Montreal's previous quarterly dividend of $1.67. Bank Of Montreal's dividend payout ratio (DPR) is currently 50.96%.

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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