BMO Considering Sale of Transportation Finance Business, Potential $1 Billion Deal

Bank of Montreal is evaluating the sale of its transportation financing business, which could fetch around $1 billion. The bank has reportedly solicited interest from private equity firms and other potential buyers. The sale could be a strategic move for BMO to focus on its core businesses and exit a non-core segment.

Bank of Montreal (BMO) is reportedly evaluating the sale of its transportation financing business, which could fetch around $1 billion. The bank has reportedly solicited interest from private equity firms and other potential buyers. This potential sale is seen as a strategic move for BMO to focus on its core businesses and exit a non-core segment.

According to recent financial disclosures, BMO has experienced significant growth in its institutional holdings. Atlas Capital Advisors Inc. increased its stake in BMO by 1,997.9%, holding 3,986 shares valued at $381,000 after acquiring an additional 3,796 shares in the first quarter [1]. Other institutional investors, such as Vanguard Group Inc., Toronto Dominion Bank, Mackenzie Financial Corp., The Manufacturers Life Insurance Company, and JARISLOWSKY FRASER Ltd., have also increased their holdings in BMO, indicating a strong investor confidence in the bank's core operations.

BMO reported $1.84 earnings per share for the most recent quarter, meeting analysts' expectations, while quarterly revenue grew 8.8% year-over-year. The bank also announced a quarterly dividend of $1.1801, representing a 4.2% yield, up from its previous dividend of $1.11. These positive financial results suggest that BMO's core businesses are performing well, making the potential sale of its transportation financing business an attractive option for strategic refocusing.

Analysts have mixed opinions on BMO's stock. Wall Street Zen raised BMO's rating from "sell" to "hold," while Scotiabank set a "sector perform" rating on the stock. Barclays downgraded BMO from an "overweight" rating to an "equal weight" rating, and CIBC restated a "neutral" rating. Eight analysts have rated the stock with a hold rating and one has given a buy rating to the company's stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus target price of $129.50.

The sale of the transportation financing business could provide BMO with significant capital to reinvest in its core businesses or to pursue new opportunities. The bank's focus on its core operations, combined with its strong financial performance, positions it well for future growth.

References:
[1] https://www.marketbeat.com/instant-alerts/filing-bank-of-montreal-nysebmo-stake-raised-by-atlas-capital-advisors-inc-2025-08-10/