Bank of Nova Scotia (NYSE:BNS) Shares Gap Down After Earnings Miss

The Bank of Nova Scotia (NYSE:BNS - Get Free Report) TSE: BNS shares gapped down prior to trading on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $52.19, but opened at $51.00. Bank of Nova Scotia shares last traded at $52.77, with a volume of 344,504 shares traded.

The bank reported $1.06 EPS for the quarter, missing the consensus estimate of $1.14 by ($0.08). The business had revenue of $6.59 billion for the quarter, compared to analyst estimates of $8.98 billion. Bank of Nova Scotia had a return on equity of 11.56% and a net margin of 10.20%. The company's revenue for the quarter was up 8.8% on a year-over-year basis. During the same period in the prior year, the business earned $1.58 EPS.

Bank of Nova Scotia Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, July 29th. Shareholders of record on Wednesday, July 2nd will be paid a $0.7996 dividend. This represents a $3.20 dividend on an annualized basis and a yield of 6.01%. This is a boost from Bank of Nova Scotia's previous quarterly dividend of $0.74. The ex-dividend date of this dividend is Wednesday, July 2nd. Bank of Nova Scotia's payout ratio is presently 89.44%.

Analyst Upgrades and Downgrades

BNS has been the subject of several research analyst reports. Cibc World Mkts lowered shares of Bank of Nova Scotia from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, February 18th. CIBC reissued a "neutral" rating on shares of Bank of Nova Scotia in a research report on Tuesday, February 18th. Royal Bank of Canada dropped their price objective on Bank of Nova Scotia from $83.00 to $81.00 and set a "sector perform" rating for the company in a research note on Wednesday, February 26th. Finally, Bank of America downgraded Bank of Nova Scotia from a "buy" rating to a "neutral" rating in a research report on Monday, March 31st. One research analyst has rated the stock with a sell rating, five have issued a hold rating and four have issued a buy rating to the stock. According to data from MarketBeat, Bank of Nova Scotia currently has a consensus rating of "Hold" and an average target price of $81.00.

Institutional Trading of Bank of Nova Scotia

Several large investors have recently added to or reduced their stakes in the stock. Murphy & Mullick Capital Management Corp acquired a new position in Bank of Nova Scotia during the 4th quarter worth about $25,000. Bank Julius Baer & Co. Ltd Zurich acquired a new position in shares of Bank of Nova Scotia in the fourth quarter valued at approximately $31,000. Allworth Financial LP lifted its stake in shares of Bank of Nova Scotia by 121.1% in the 4th quarter. Allworth Financial LP now owns 639 shares of the bank's stock worth $33,000 after acquiring an additional 350 shares during the period. Compagnie Lombard Odier SCmA acquired a new position in shares of Bank of Nova Scotia during the 1st quarter worth $52,000. Finally, Independence Bank of Kentucky boosted its position in Bank of Nova Scotia by 38.4% during the first quarter. Independence Bank of Kentucky now owns 1,175 shares of the bank's stock worth $56,000 after purchasing an additional 326 shares in the last quarter. 49.13% of the stock is currently owned by hedge funds and other institutional investors.

Bank of Nova Scotia Stock Up 2.0%

The firm's 50-day moving average price is $49.00 and its 200 day moving average price is $51.10. The firm has a market capitalization of $66.30 billion, a price-to-earnings ratio of 12.32, a price-to-earnings-growth ratio of 1.16 and a beta of 1.11. The company has a debt-to-equity ratio of 0.59, a current ratio of 1.03 and a quick ratio of 1.03.

About Bank of Nova Scotia

The Bank of Nova Scotia provides various banking products and services in Canada, the United States, Mexico, Peru, Chile, Colombia, the Caribbean and Central America, and internationally. It operates through Canadian Banking, International Banking, Global Wealth Management, and Global Banking and Markets segments.