FineMark National Bank & Trust Reduces Stake in Bank of Montreal

FineMark National Bank & Trust has significantly decreased its investment in Bank of Montreal (NYSE:BMO) during the fourth quarter, lowering its stake by 63.7%. This reduction was disclosed in the company's most recent filing with the SEC. Following the sale of 5,681 shares, FineMark now holds 3,240 shares of the bank's stock, valued at approximately $314,000.

Other Institutional Investments

In addition to FineMark's actions, other large institutional investors have made adjustments to their holdings in Bank of Montreal. Bank of New York Mellon Corp increased its investment by 6.0% during the same quarter, owning 708,767 shares worth about $68.79 million after adding 40,135 shares. Charles Schwab Investment Management Inc. also upped its stake by 3.5%, owning 1,913,716 shares valued at around $185.69 million after acquiring an additional 64,799 shares. Meanwhile, Steward Partners Investment Advisory LLC raised its holdings by 58.4%, now possessing 4,618 shares with a value of $448,000. Heck Capital Advisors LLC and Five Oceans Advisors have also bought new stakes in the bank during this period, valued at $346,000 and $327,000, respectively. Overall, institutional investors and hedge funds control 45.82% of Bank of Montreal's stock.

Current Stock Performance

On Thursday, shares of Bank of Montreal opened at $97.56, reflecting a 0.6% decrease. The stock has a twelve-month low of $76.98 and a high of $106.00, with a market capitalization of $70.93 billion. It boasts a price-to-earnings ratio of 13.98 and a beta of 1.07, alongside a current ratio of 0.98 and a debt-to-equity ratio of 0.11. The fifty-day and 200-day moving averages are currently positioned at $99.42 and $95.71, respectively.

Recent Earnings Report

The Bank of Montreal recently released its quarterly earnings data, which showed impressive results. The bank reported earnings per share (EPS) of $3.04, exceeding analysts' expectations of $1.68 by a wide margin. The firm achieved a return on equity of 10.18% and a net margin of 9.22%, with revenue totaling $9.27 billion, surpassing the forecast of $8.58 billion. Compared to the previous year, revenue increased by 20.8%, and analysts predict the bank will report EPS of 7.71 for the current fiscal year.

Dividends and Future Outlook

Bank of Montreal has also announced a quarterly dividend of $1.1094, which will be distributed on May 27. Shareholders who hold shares by April 29 are eligible for this dividend, resulting in an annualized dividend yield of 4.55%. The current dividend payout ratio stands at 57.09%.

Analyst Activity

Several analysts have recently provided updates on Bank of Montreal's stock. CIBC World Markets upgraded the stock from a "hold" to a "strong-buy" rating, while Scotiabank moved it from "sector perform" to "sector outperform." Royal Bank of Canada set its price target for the stock at $163.00, maintaining an "outperform" rating. Current consensus among research analysts shows seven hold ratings, four buy ratings, and one strong buy rating. The average price target is set at $128.40.

About Bank of Montreal

The Bank of Montreal provides a range of financial services primarily in North America, operating through various segments including Canadian P&C, U.S. P&C, BMO Wealth Management, and BMO Capital Markets. The bank offers personal banking services such as mortgages, consumer credit, and investment advice, along with commercial banking services that include treasury and payment solutions.

BMO, Investment, Stocks