Bank of Montreal: MACD Death Cross, RSI Overbought on 15min Chart

Bank of Montreal's 15-minute chart has exhibited a MACD Death Cross and an RSI reading above 70, which occurred on September 4, 2025 at 15:15. This suggests that the stock price may continue to decline, as it has experienced a rapid increase that exceeds its fundamental value.

Bank of Montreal (NYSE: BMO) announced on Tuesday that it has received regulatory approvals to proceed with its revised normal course issuer bid. The bank had previously stated its intention to replace its existing normal course issuer bid with a new one, which will involve the purchase of up to 30 million shares of common stock for cancellation. The Toronto Stock Exchange and the Office of the Superintendent of Financial Institutions Canada have both given their approvals [1].

The existing buyback program will terminate on September 4, 2025, and the new bid will commence on September 5, 2025, with no later than September 4, 2026 as its end date. As of August 29, the bank had already purchased 15.95 million shares under the existing bid through purchases on the TSX and alternative trading systems in Canada at an average price of $143.39 per share for an aggregate amount of $2.29 billion. The 30 million shares approved for repurchase under the new bid represent approximately 4.2% of the company's public float [1].

The public float of Bank of Montreal, as of July 31, was approximately 716.12 million shares, with a total of 716.36 million shares issued and outstanding. The new bid suggests that the bank is looking to reduce its share count, which could potentially boost earnings per share (EPS) [1].

Institutional investors have also been making notable changes to their positions in Bank of Montreal. For instance, Federation des caisses Desjardins du Quebec has reduced its stake in Bank of Montreal by 34.6%, now holding approximately 3.22 million shares valued at $306.95 million. Meanwhile, several other institutional investors, including Vanguard Group Inc., Toronto Dominion Bank, Mackenzie Financial Corp, JARISLOWSKY FRASER Ltd, and Goldman Sachs Group Inc., have increased their stakes in the bank's stock [2].

Analysts have provided mixed ratings for Bank of Montreal, with some maintaining a "hold" rating, while others have issued "buy" or "sell" ratings. The stock has been trading within a range of $81.69 to $121.17 over the past year, with a current market cap of $86.75 billion and a price-to-earnings ratio of 14.82 [2].

The recent regulatory approval for Bank of Montreal's revised normal course issuer bid comes amidst a period of market volatility and uncertainty. The bank's stock has exhibited a MACD Death Cross and an RSI reading above 70 on September 4, 2025, at 15:15, suggesting potential downward pressure on the stock price [3].

References:
[1] https://seekingalpha.com/news/4491689-bank-of-montreal-gets-regulatory-nod-for-revised-normal-course-issuer-bid
[2] https://www.marketbeat.com/instant-alerts/filing-federation-des-caisses-desjardins-du-quebec-has-30695-million-position-in-bank-of-montreal-bmo-2025-09-02/