Bank of Nova Scotia (The) (NYSE:BNS) Stock Has Consensus Price Target of $105.50

Key Points

• Analysts are moderately bullish on Bank of Nova Scotia: five of ten covering firms rate it a buy and one a strong buy, with a consensus 12-month price target of $105.50.
• The bank beat quarterly estimates, reporting EPS of $1.64 versus $1.53 expected and revenue of C$7.52 billion, up 11.1% year over year.
• The board authorized a repurchase of up to 40 million shares (3.3% of outstanding stock); the bank also pays an annualized dividend of C$4.56 per share, a reported yield of 5.0%.

Shares of Bank of Nova Scotia (The) (NYSE:BNS - Get Free Report) TSE: BNS have been given a consensus rating of "Moderate Buy" by the ten research firms that are presently covering the stock, Marketbeat Ratings reports. Four investment analysts have rated the stock with a hold rating, five have issued a buy rating and one has issued a strong buy rating on the company. The average 12 month price objective among brokerages that have covered the stock in the last year is $105.50.

A number of research analysts have issued reports on BNS shares. Keefe, Bruyette & Woods started coverage on Bank of Nova Scotia in a research report on Friday, August 21st. They set an "outperform" rating for the company. TD upgraded shares of Bank of Nova Scotia to a "buy" rating in a research note on Wednesday, August 26th. Weiss Ratings raised shares of Bank of Nova Scotia from a "buy (a-)" rating to a "buy (a)" rating in a report on Thursday, October 8th. TD Securities raised shares of Bank of Nova Scotia from a "hold" rating to a "buy" rating in a report on Tuesday, August 25th. Finally, National Bank Financial upgraded shares of Bank of Nova Scotia from a "sector perform" rating to an "outperform" rating in a research report on Wednesday, August 26th.

Bank of Nova Scotia Price Performance

Shares of NYSE:BNS opened at $91.69 on Friday. The firm's 50 day moving average is $92.39 and its two-hundred day moving average is $82.84. The firm has a market capitalization of $111.47 billion, a P/E ratio of 16.59, a PEG ratio of 0.92 and a beta of 1.14. The company has a current ratio of 1.04, a quick ratio of 1.04 and a debt-to-equity ratio of 1.98. Bank of Nova Scotia has a 52 week low of $65.55 and a 52 week high of $96.85.

Bank of Nova Scotia (NYSE:BNS - Get Free Report) TSE: BNS last issued its quarterly earnings data on Tuesday, August 25th. The bank reported $1.64 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.53 by $0.11. Bank of Nova Scotia had a return on equity of 16.12% and a net margin of 13.91%. The business had revenue of $7.52 billion during the quarter, compared to analyst estimates of $7.11 billion. During the same period in the prior year, the company posted $1.84 EPS. The business's revenue for the quarter was up 11.1% compared to the same quarter last year. Analysts anticipate that Bank of Nova Scotia will post 6.19 earnings per share for the current year.

Bank of Nova Scotia declared that its Board of Directors has initiated a share repurchase plan on Friday, October 2nd that permits the company to repurchase 40,000,000 shares. This buyback authorization permits the bank to buy up to 3.3% of its stock through open market purchases. Share buyback plans are generally an indication that the company's leadership believes its shares are undervalued.

Bank of Nova Scotia Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, October 28th. Shareholders of record on Tuesday, October 6th were paid a dividend of C$1.14 per share. This represents a $4.56 dividend on an annualized basis and a yield of 5.0%. The ex-dividend date of this dividend was Tuesday, October 6th. Bank of Nova Scotia's dividend payout ratio (DPR) is presently 57.87%.

Institutional Investors Weigh In On Bank of Nova Scotia

Several hedge funds and other institutional investors have recently bought and sold shares of BNS. Canada Pension Plan Investment Board acquired a new stake in Bank of Nova Scotia during the second quarter valued at approximately $1,016,738,000. Legal & General Group Plc bought a new position in shares of Bank of Nova Scotia in the second quarter valued at $709,837,000. Connor Clark & Lunn Investment Management Ltd. bought a new position in shares of Bank of Nova Scotia in the second quarter valued at $567,278,000. Dimensional Fund Advisors LP lifted its position in shares of Bank of Nova Scotia by 2.6% during the 1st quarter. Dimensional Fund Advisors LP now owns 6,008,689 shares of the bank's stock valued at $416,415,000 after acquiring an additional 154,541 shares during the last quarter. Finally, The Manufacturers Life Insurance Company acquired a new stake in shares of Bank of Nova Scotia during the 2nd quarter valued at $416,397,000. 49.13% of the stock is currently owned by institutional investors.

About Bank of Nova Scotia

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