Analysts Set Bank of Nova Scotia (The) (NYSE:BNS) Target Price at $81.00

Key Points

• Bank of Nova Scotia has received a consensus rating of "Hold" from research firms, with an average 1-year price target of $81.00.
• The bank recently increased its quarterly dividend to $0.7996 per share, representing a yield of 5.6%.
• Institutional investors have significantly increased their stakes, notably with Norges Bank purchasing approximately $838 million worth of shares.

Bank of Nova Scotia (The) (NYSE:BNS - Get Free Report) TSE: BNS has been given an average rating of "Hold" by the nine ratings firms that are currently covering the stock, Marketbeat reports. Five analysts have rated the stock with a hold rating and four have issued a buy rating on the company. The average 1 year price objective among brokers that have issued ratings on the stock in the last year is $81.00.

Separately, Wall Street Zen cut shares of Bank of Nova Scotia from a "hold" rating to a "sell" rating in a research note on Saturday, June 21st.

Bank of Nova Scotia Price Performance

BNS stock traded up $0.13 during midday trading on Friday, reaching $56.77. The company had a trading volume of 1,150,931 shares, compared to its average volume of 1,390,457. The company has a debt-to-equity ratio of 0.62, a current ratio of 1.03 and a quick ratio of 1.03. Bank of Nova Scotia has a 1 year low of $44.09 and a 1 year high of $57.07. The company has a market capitalization of $70.53 billion, a P/E ratio of 16.65, a P/E/G ratio of 1.43 and a beta of 1.14. The firm has a 50-day moving average price of $55.26 and a 200-day moving average price of $51.53.

Bank of Nova Scotia (NYSE:BNS - Get Free Report) TSE: BNS last announced its quarterly earnings data on Tuesday, May 27th. The bank reported $1.06 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.14 by ($0.08). Bank of Nova Scotia had a net margin of 8.83% and a return on equity of 11.27%. The business had revenue of $6.59 billion during the quarter, compared to analysts' expectations of $8.98 billion. During the same period last year, the company posted $1.58 EPS. Bank of Nova Scotia's revenue for the quarter was up 8.8% on a year-over-year basis. On average, research analysts anticipate that Bank of Nova Scotia will post 4.91 earnings per share for the current fiscal year.

Bank of Nova Scotia Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, July 29th. Stockholders of record on Wednesday, July 2nd were given a $0.7996 dividend. The ex-dividend date of this dividend was Wednesday, July 2nd. This represents a $3.20 annualized dividend and a dividend yield of 5.6%. This is a positive change from Bank of Nova Scotia's previous quarterly dividend of $0.74. Bank of Nova Scotia's dividend payout ratio is 94.72%.

Institutional Investors Weigh In On Bank of Nova Scotia

Several institutional investors and hedge funds have recently modified their holdings of the stock. Norges Bank bought a new position in shares of Bank of Nova Scotia in the 2nd quarter worth about $838,738,000. Goldman Sachs Group Inc. increased its stake in shares of Bank of Nova Scotia by 255.9% in the 1st quarter. Goldman Sachs Group Inc. now owns 10,174,780 shares of the bank's stock worth $482,590,000 after acquiring an additional 7,315,915 shares in the last quarter. JPMorgan Chase & Co. increased its stake in shares of Bank of Nova Scotia by 83.4% in the 2nd quarter. JPMorgan Chase & Co. now owns 13,148,255 shares of the bank's stock worth $726,704,000 after acquiring an additional 5,979,338 shares in the last quarter. Canada Pension Plan Investment Board increased its stake in shares of Bank of Nova Scotia by 141.1% in the 1st quarter. Canada Pension Plan Investment Board now owns 8,364,411 shares of the bank's stock worth $396,650,000 after acquiring an additional 4,894,754 shares in the last quarter. Finally, Murchinson Ltd. bought a new position in shares of Bank of Nova Scotia in the 1st quarter worth about $203,953,000. 49.13% of the stock is owned by hedge funds and other institutional investors.

Bank of Nova Scotia Company Profile

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.