Bank of Montreal Stock Price and Value Analysis

Should you buy Bank of Montreal stock? (NYSE:BMO). Let's see how it does in our automated value investing analysis system.

AdvantagesDisadvantages
  • This company has a large dividend yield!
  • This stock looks overpriced.
  • This company has wild ups and downs.
  • This company is making money at a modest rate.
  • This company is less known than others.

Inside the BMO Numbers

BMO Price
(Bank of Montreal stock price per share)
$97.15
[?] BMO Fair Price
(based on intrinsic value)
$83.80
[?] BMO Safety Price (based on a variable margin of safety) $50.28
[?] PE Ratio versus Sector 19% lower than other Financial stocks
[?] PE Ratio versus Industry 20% higher than other Banks - Global stocks
[?] Cash Yield 3.42%
[?] Free Cash Flow Jitter 520%
[?] Dividend Yield 4%
Shares Shorted 9,421,749

This stock has short interest! This means that people have shorted it.

Why does that matter? They've made a bet that price will decrease from where they bought it. Maybe there are financial problems, or maybe there's a value play.

As of the latest analysis, there are 9,421,749 shares shorted. With 648,265,330 shares available for purchase and an average trading volume over the past 10 trading days of 528,920, it would take at least 17.813 days for all of the short holders to cover their shorts.

What does this mean to you? At this volume, it'll take more than two trading weeks for shorts to cover. This may indicate a short squeeze play would work! If this stock has good fundamentals and it'll take a while for the short holders to cover, buying now could net you bigger short-term technical gains if and as the price rises.

Is Bank of Montreal Stock on Sale?

We believe that Bank of Montreal may be worth examining further. It's making money, which is a very positive sign. Is it on sale?

Bank of Montreal looks overpriced right now. If you're looking for a bargain in the stock market, you should probably look elsewhere for a great deal. This might still be a great stock to own—but it's not on sale right now.

Should You Buy BMO Stock?

Does Bank of Montreal have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.