Zacks Investment Research Lowers Bank of Montreal (BMO) to Sell

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Zacks Investment Research cut shares of Bank of Montreal (NYSE:BMO) (TSE:BMO) from a hold rating to a sell rating in a research note released on Friday.

According to Zacks, “Bank of Montreal is one of the largest banks in North America, is also one of Canada’s oldest banks. The bank offers a complete range of financial services in our chosen markets on both sides of the Canada-United States border. The bank offers to all of their clients not just financial products, but knowledge-based solutions, custom-made to add value in their financial affairs. “

BMO has been the topic of a number of other reports. Canaccord Genuity raised shares of Bank of Montreal from a hold rating to a buy rating in a report on Wednesday, August 29th. BMO Capital Markets raised shares of Bank of Montreal to a $78.97 rating in a report on Wednesday, July 18th. Royal Bank of Canada raised shares of Bank of Montreal from a sector perform rating to an outperform rating and set a $120.00 price target on the stock in a report on Wednesday, July 18th. Finally, ValuEngine downgraded shares of Bank of Montreal from a hold rating to a sell rating in a report on Thursday, November 1st. Two analysts have rated the stock with a sell rating and five have issued a buy rating to the company’s stock. The stock currently has a consensus rating of Hold and an average target price of $106.50.

Shares of NYSE:BMO traded down $0.74 during midday trading on Friday, reaching $74.83. The company had a trading volume of 520,968 shares, compared to its average volume of 895,950. The company has a debt-to-equity ratio of 0.14, a quick ratio of 1.16 and a current ratio of 1.16. The company has a market capitalization of $48.49 billion, a P/E ratio of 11.99, a price-to-earnings-growth ratio of 1.24 and a beta of 1.10. Bank of Montreal has a 52-week low of $73.79 and a 52-week high of $84.71.

Bank of Montreal (NYSE:BMO) (TSE:BMO) last issued its quarterly earnings results on Tuesday, August 28th. The bank reported $1.82 earnings per share for the quarter, topping the Zacks’ consensus estimate of $1.75 by $0.07. The company had revenue of $4.51 billion for the quarter, compared to the consensus estimate of $4.45 billion. Bank of Montreal had a net margin of 16.17% and a return on equity of 14.75%. As a group, research analysts predict that Bank of Montreal will post 6.91 earnings per share for the current year.

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, November 27th. Shareholders of record on Thursday, November 1st will be issued a dividend of $0.7386 per share. This represents a $2.95 annualized dividend and a yield of 3.95%. The ex-dividend date of this dividend is Wednesday, October 31st. Bank of Montreal’s dividend payout ratio (DPR) is presently 46.79%.

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in BMO. BDO Wealth Advisors LLC purchased a new stake in Bank of Montreal during the second quarter valued at about $105,000. AdvisorNet Financial Inc lifted its holdings in Bank of Montreal by 148.1% during the second quarter. AdvisorNet Financial Inc now owns 1,526 shares of the bank’s stock valued at $118,000 after purchasing an additional 911 shares during the last quarter. Cornerstone Wealth Management LLC purchased a new stake in Bank of Montreal during the third quarter valued at about $142,000. Bay Colony Advisory Group Inc d b a Bay Colony Advisors purchased a new stake in Bank of Montreal during the second quarter valued at about $155,000. Finally, Columbia Asset Management purchased a new stake in Bank of Montreal during the third quarter valued at about $161,000. 43.42% of the stock is currently owned by institutional investors and hedge funds.

Bank of Montreal Company Profile

Bank of Montreal provides diversified financial services primarily in North America. It operates through three groups: Personal and Commercial Banking, Wealth Management, and BMO Capital Markets. The company's personal banking products and services include checking and savings accounts, credit cards, mortgages, creditor insurance products, and financial and investment advice services; and commercial banking products and services comprise business deposit accounts, commercial credit cards, business loans and commercial mortgages, cash management solutions, foreign exchange, and specialized banking programs for small business and commercial banking customers.

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