Bank of Nova Scotia (NYSE:BNS) Hits New 52-Week High on Analyst Upgrade

Key Points

• Bank of Nova Scotia shares hit a new 52-week high of $92.75 after TD Securities upgraded the stock from “hold” to “buy.” Analysts collectively rate BNS “Moderate Buy,” with an average price target of $117.
• Strong quarterly results supported the rally: Scotiabank reported approximately $2.95 billion in third-quarter profit, up from $2.53 billion a year earlier, while adjusted EPS of $2.28 exceeded estimates of about $2.10.
• Capital markets and wealth management drove broad-based growth, with revenue increasing 11.1% year over year. Institutional ownership stands at 49.13%, with several investment firms recently increasing their stakes.

Shares of Bank of Nova Scotia (The) (NYSE:BNS - Get Free Report) TSE: BNS hit a new 52-week high during mid-day trading on Tuesday after TD Securities upgraded the stock from a hold rating to a buy rating. The company traded as high as $92.75 and last traded at $92.70, with a volume of 2373217 shares. The stock had previously closed at $86.86.

BNS has been the subject of several other research reports. Keefe, Bruyette & Woods started coverage on shares of Bank of Nova Scotia in a report on Friday. They issued an "outperform" rating for the company. Royal Bank Of Canada lifted their target price 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. Finally, Weiss Ratings downgraded shares of Bank of Nova Scotia from a "buy (a-)" rating to a "buy (b+)" rating in a research report on Tuesday, August 18th. Four investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $117.00.

Bank of Nova Scotia News Roundup

Here are the key news stories impacting Bank of Nova Scotia this week:

• Positive Sentiment: Quarterly profit beat expectations. Scotiabank reported approximately $2.95 billion in third-quarter profit, up from $2.53 billion a year earlier. Adjusted earnings per share reached $2.28, ahead of analysts’ estimate of about $2.10. A separate reported figure showed EPS of $1.64 versus consensus of $1.53, reflecting differences between adjusted and reported measures. Scotiabank posts record quarter as capital markets surge lifts profit past estimates
• Positive Sentiment: Capital markets provided a major earnings boost. Elevated market volatility supported stronger-than-expected trading and investment-banking activity, helping the global banking and markets division deliver a record result. Bank of Nova Scotia beats profit estimates boosted by capital markets and business performance
• Positive Sentiment: Growth was broad-based. Wealth management also posted a record result, while the bank said all major business lines contributed to the earnings improvement. Revenue increased 11.1% year over year, and higher interest income provided additional support. Scotiabank Earnings Lifted by Record Result in Wealth Management
• Neutral Sentiment: New business credit-card product. Scotiabank launched a no-fee Visa card offering Canadian business owners 1% cash back. The product could support future customer acquisition and payments revenue, but its near-term financial impact is likely limited. Scotiabank Launches New No Fee Visa Credit Card

Institutional Investors Weigh In On Bank of Nova Scotia

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. AQR Capital Management LLC grew its position in Bank of Nova Scotia by 111.2% in the first quarter. AQR Capital Management LLC now owns 19,096 shares of the bank's stock valued at $911,000 after acquiring an additional 10,056 shares during the last quarter. Sivia Capital Partners LLC acquired a new stake in shares of Bank of Nova Scotia during the second quarter worth $330,000. EverSource Wealth Advisors LLC lifted its stake in Bank of Nova Scotia by 42.8% in the second quarter. EverSource Wealth Advisors LLC now owns 2,165 shares of the bank's stock valued at $120,000 after buying an additional 649 shares during the period. Sei Investments Co. grew its stake in Bank of Nova Scotia by 2.1% in the second quarter. Sei Investments Co. now owns 21,212 shares of the bank's stock valued at $1,172,000 after acquiring an additional 434 shares during the period. Finally, Quantinno Capital Management LP lifted its position in Bank of Nova Scotia by 61.1% in the 2nd quarter. Quantinno Capital Management LP now owns 66,962 shares of the bank's stock valued at $3,701,000 after acquiring an additional 25,400 shares in the last quarter. 49.13% of the stock is currently owned by institutional investors.

Bank of Nova Scotia Price Performance

The company has a fifty day moving average of $87.62 and a 200-day moving average of $79.69. The firm has a market cap of $113.46 billion, a P/E ratio of 17.76, a P/E/G ratio of 1.08 and a beta of 1.11. The company has a debt-to-equity ratio of 0.69, a current ratio of 1.04 and a quick ratio of 1.04.

Bank of Nova Scotia (NYSE:BNS - Get Free Report) TSE: BNS last released its quarterly earnings results on Wednesday, May 27th. The bank reported $1.47 earnings per share for the quarter, topping the consensus estimate of $1.42 by $0.05. The business had revenue of $7.24 billion for the quarter, compared to analysts' expectations of $7.13 billion. Bank of Nova Scotia had a net margin of 13.38% and a return on equity of 13.16%. The firm's revenue for the quarter was up 8.3% compared to the same quarter last year. During the same period in the previous year, the company earned $1.52 earnings per share. On average, sell-side analysts anticipate that Bank of Nova Scotia will post 6.03 EPS for the current fiscal year.

About Bank of Nova Scotia

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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