Bank of Nova Scotia (NYSE:BNS) Hits New 12-Month High - Still a Buy?

Key Points

• Bank of Nova Scotia shares reached a new 52-week high, trading as high as $94.96 and last changing hands near $95.12. MarketBeat’s analyst consensus is “Moderate Buy,” with an average price target of $117.
• The bank exceeded quarterly expectations, reporting earnings per share of $1.64 versus a $1.53 consensus and revenue of $7.52 billion versus $7.11 billion expected. Revenue increased 11.1% year over year.
• Scotiabank declared a quarterly dividend of $1.14, or $4.56 annualized and a 4.8% yield, with a payout ratio of 58.05%. Institutional investors and hedge funds own approximately 49.13% of the stock.

Bank of Nova Scotia (The) (NYSE:BNS - Get Free Report) TSE: BNS's share price reached a new 52-week high during trading on Thursday . The company traded as high as $94.96 and last traded at $95.12, with a volume of 283593 shares. The stock had previously closed at $93.31.

Wall Street Analyst Weigh In

A number of research firms have recently issued reports on BNS. Royal Bank Of Canada raised their price objective on Bank of Nova Scotia from $98.00 to $117.00 and gave the company a "sector perform" rating in a research report on Thursday, May 28th. National Bank Financial upgraded Bank of Nova Scotia from a "sector perform" rating to an "outperform" rating in a research note on Wednesday, August 26th. TD Securities raised Bank of Nova Scotia from a "hold" rating to a "buy" rating in a report on Tuesday, August 25th. Keefe, Bruyette & Woods assumed coverage on shares of Bank of Nova Scotia in a research report on Friday, August 21st. They set an "outperform" rating for the company. Finally, Weiss Ratings upgraded shares of Bank of Nova Scotia from a "buy (b+)" rating to a "buy (a-)" rating in a report on Tuesday. One research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat, Bank of Nova Scotia has an average rating of "Moderate Buy" and an average target price of $117.00.

Bank of Nova Scotia Stock Performance

The firm has a market cap of $115.87 billion, a P/E ratio of 17.20, a P/E/G ratio of 1.02 and a beta of 1.12. The company has a debt-to-equity ratio of 1.98, a quick ratio of 1.04 and a current ratio of 1.04. The company's 50 day moving average is $88.49 and its 200 day moving average is $80.48.

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 for the quarter, topping the consensus estimate of $1.53 by $0.11. The company had revenue of $7.52 billion for the quarter, compared to analysts' expectations of $7.11 billion. Bank of Nova Scotia had a net margin of 13.91% and a return on equity of 16.12%. Bank of Nova Scotia's revenue for the quarter was up 11.1% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.84 earnings per share. As a group, equities analysts predict that Bank of Nova Scotia will post 6.19 earnings per share for the current fiscal year.

Bank of Nova Scotia Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, October 28th. Shareholders of record on Tuesday, October 6th will be paid a $1.14 dividend. The ex-dividend date of this dividend is Tuesday, October 6th. This represents a $4.56 annualized dividend and a yield of 4.8%. Bank of Nova Scotia's payout ratio is 58.05%.

Institutional Trading of Bank of Nova Scotia

Several hedge funds have recently bought and sold shares of the business. Maseco LLP bought a new stake in Bank of Nova Scotia during the 1st quarter worth approximately $30,000. Swiss RE Ltd. purchased a new position in shares of Bank of Nova Scotia during the 4th quarter valued at $30,000. Brown Brothers Harriman & Co. purchased a new position in shares of Bank of Nova Scotia during the 4th quarter valued at $34,000. Quarry LP bought a new position in shares of Bank of Nova Scotia in the third quarter worth $35,000. Finally, CoreCap Advisors LLC raised its position in shares of Bank of Nova Scotia by 1,366.7% in the second quarter. CoreCap Advisors LLC now owns 440 shares of the bank's stock worth $38,000 after buying an additional 410 shares in the last quarter. Institutional investors and hedge funds own 49.13% of the company's stock.

Bank of Nova Scotia Company Profile

Bank of Nova Scotia, commonly known as Scotiabank, is a Canadian multinational banking and financial services company founded in 1832 and headquartered in Toronto, Ontario. It is one of Canada's largest banks and provides a broad range of financial services to retail, commercial, corporate and institutional clients. The bank combines a domestic Canadian franchise with an extensive international presence to serve customers across multiple markets.

Scotiabank's core activities include personal and commercial banking, wealth management, corporate and investment banking, capital markets, and global transaction banking.

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