Bank Of Montreal (BMO) Investigation: Bronstein, Gewirtz and Grossman, LLC Encourages Stockholders to Seek Compensation for Alleged Wrongdoings

Rhea-AI Summary

Bronstein, Gewirtz & Grossman, is investigating potential claims against Bank Of Montreal (NYSE:BMO) on behalf of investors. The investigation follows BMO's Q3 2024 financial results, which revealed:

• Adjusted EPS of C$2.64 (US$1.96), missing consensus estimates for the third consecutive quarter
• Increased provision for credit losses to C$906 million, up from C$492 million year-over-year

As a result, BMO's stock price fell 6.16% to close at $83.30 on August 27, 2024. Jefferies downgraded BMO's stock to Hold from Buy. Investors who purchased BMO securities are encouraged to assist the investigation by visiting bgandg.com/BMO.

Positive

• None.

Negative

• BMO missed consensus earnings estimates for the third consecutive quarter
• Provision for credit losses increased by 84% year-over-year to C$906 million
• Stock price fell 6.16% following the Q3 2024 results announcement
• Jefferies downgraded BMO's stock from Buy to Hold

Insights

Legal Expert

This investigation into Bank of Montreal (BMO) raises significant legal and financial concerns. The missed earnings estimates for three consecutive quarters, coupled with a substantial increase in credit loss provisions, suggest potential underlying issues in BMO's financial management or risk assessment practices. The stock price drop of 6.16% following this news indicates a notable market reaction.

From a legal standpoint, the investigation's focus on "potential claims on behalf of purchasers" suggests possible securities fraud allegations. If the investigation uncovers any misrepresentation or omission of material facts by BMO, it could lead to class action lawsuits and regulatory scrutiny. Investors should closely monitor developments, as successful claims could result in financial penalties for BMO and potential recoveries for affected shareholders.

Financial Analyst

The financial implications of BMO's Q3 2024 results are concerning. The adjusted EPS of C$2.64 missing consensus estimates for the third straight quarter points to a consistent underperformance trend. More alarmingly, the provision for credit losses nearly doubled year-over-year to C$906 million, signaling heightened anticipation of loan defaults or economic stress.

This substantial increase in loss provisions could impact BMO's profitability and capital adequacy ratios. The downgrade by Jefferies from Buy to Hold reflects diminished confidence in BMO's near-term prospects. Investors should scrutinize BMO's loan portfolio quality, risk management practices and economic outlook in upcoming disclosures to assess the bank's financial health and growth potential.

NEW YORK CITY, NY / ACCESSWIRE / August 28, 2024 / Bronstein, Gewirtz & Grossman, LLC is investigating potential claims on behalf of purchasers of Bank Of Montreal ("BoM" or "the Company") (NYSE:BMO). Investors who purchased BoM securities are encouraged to obtain additional information and assist the investigation by visiting the firm's site: bgandg.com/BMO.

Investigation Details

On August 27, 2024, BoM reported its financial results for the third quarter of 2024. Among other items, BoM reported adjusted earnings per share of C$2.64 (US$1.96), missing consensus estimates for the third consecutive quarter. The Company also increased its provision for credits loses to C$906 million, compared to C$492 million for the same period in the prior year. In response, Jefferies downgraded BoM's stock to Hold from Buy. On this news, BoM's stock price fell $5.47 per share, or 6.16%, to close at $83.30 per share on August 27, 2024.

What's Next?

If you are aware of any facts relating to this investigation or purchased BoM securities, you can assist this investigation by visiting the firm's site: bgandg.com/BMO. You can also contact Peretz Bronstein or his client relations manager, Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC: 332-239-2660.

There is No Cost to You

We represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys' fees, usually a percentage of the total recovery, only if we are successful.

Why Bronstein, Gewirtz & Grossman

Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide.

Attorney advertising. Prior results do not guarantee similar outcomes.

Contact

Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Nathan Miller
332-239-2660 | info@bgandg.com

SOURCE: Bronstein, Gewirtz & Grossman, LLC

View the original press release on accesswire.com

FAQ

What are the key findings of Bronstein, Gewirtz & Grossman's investigation into Bank of Montreal (BMO)?

The investigation focuses on BMO's Q3 2024 financial results, which showed missed earnings estimates, increased provision for credit losses, and a subsequent stock price drop of 6.16%.

How did Bank of Montreal's (BMO) Q3 2024 financial results affect its stock price?

BMO's stock price fell $5.47 per share, or 6.16%, to close at $83.30 per share on August 27, 2024, following the announcement of its Q3 2024 financial results.

What was Bank of Montreal's (BMO) adjusted earnings per share for Q3 2024?

BMO reported adjusted earnings per share of C$2.64 (US$1.96) for Q3 2024, which missed consensus estimates for the third consecutive quarter.

How did Bank of Montreal's (BMO) provision for credit losses change in Q3 2024?

BMO's provision for credit losses increased to C$906 million in Q3 2024, compared to C$492 million for the same period in the prior year.