Bank of Nova Scotia (NYSE:BNS) Hits New 52-Week High - What's Next?

Key Points

• Bank of Nova Scotia hit a new 52-week high, trading as high as $96.37, after a previous close of $93.66.
• Recent analyst upgrades gave the stock a “Moderate Buy” consensus and an average price target of $105.50. Its latest quarterly results also beat estimates, with EPS of $1.64 and revenue of $7.52 billion.
• The bank pays an annualized dividend of C$4.56, yielding about 4.7%, and approved a buyback authorizing repurchases of up to 40 million shares, or 3.3% of its stock.

Bank of Nova Scotia (The) (NYSE:BNS - Get Free Report) TSE: BNS reached a new 52-week high during trading on Wednesday. The company traded as high as $96.37 and last traded at $96.4290, with a volume of 335,092 shares changing hands. The stock had previously closed at $93.66.

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on BNS. National Bank Financial raised shares of Bank of Nova Scotia from a "sector perform" rating to an "outperform" rating in a research report on Wednesday, August 26th. TD upgraded Bank of Nova Scotia to a "buy" rating in a research report on Wednesday, August 26th. Keefe, Bruyette & Woods began coverage on shares of Bank of Nova Scotia in a research note on Friday, August 21st. They set an "outperform" rating for the company. Weiss Ratings raised shares of Bank of Nova Scotia from a "buy (a-)" rating to a "buy (a)" rating in a research note on Thursday, October 8th. Finally, TD Securities raised shares of Bank of Nova Scotia from a "hold" rating to a "buy" rating in a report on Tuesday, August 25th. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat, Bank of Nova Scotia presently has a consensus rating of "Moderate Buy" and an average target price of $105.50.

Bank of Nova Scotia Stock Performance

The firm has a fifty day simple moving average of $92.38 and a 200-day simple moving average of $82.54. The company has a market cap of $117.27 billion, a PE ratio of 17.46, a price-to-earnings-growth ratio of 0.95 and a beta of 1.14. The company has a quick ratio of 1.04, a current ratio of 1.04 and a debt-to-equity ratio of 1.98.

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, beating 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 company had revenue of $7.52 billion during the quarter, compared to analysts' expectations of $7.11 billion. During the same quarter in the previous year, the business earned $1.84 earnings per share. The firm's revenue for the quarter was up 11.1% on a year-over-year basis. On average, research analysts forecast that Bank of Nova Scotia will post 6.19 EPS for the current fiscal year.

Bank of Nova Scotia Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, October 28th. Investors of record on Tuesday, October 6th were given a C$1.14 dividend. This represents a $4.56 annualized dividend and a yield of 4.7%. The ex-dividend date was Tuesday, October 6th. Bank of Nova Scotia's payout ratio is 57.87%.

Bank of Nova Scotia announced that its board has approved a stock buyback plan on Friday, October 2nd that authorizes the company to repurchase 40,000,000 shares. This buyback authorization authorizes the bank to buy up to 3.3% of its stock through open market purchases. Share buyback plans are typically a sign that the company's leadership believes its stock is undervalued.

Hedge Funds Weigh In On Bank of Nova Scotia

Large investors have recently bought and sold shares of the company. Andra AP fonden grew its holdings in Bank of Nova Scotia by 2.7% in the 2nd quarter. Andra AP fonden now owns 220,260 shares of the bank's stock valued at $19,127,000 after buying an additional 5,700 shares during the period. Squarepoint Ops LLC purchased a new position in shares of Bank of Nova Scotia in the 2nd quarter worth $6,974,000. PensionDanmark Pensionsforsikringsaktieselskab lifted its stake in shares of Bank of Nova Scotia by 9.3% in the 2nd quarter. PensionDanmark Pensionsforsikringsaktieselskab now owns 178,226 shares of the bank's stock valued at $15,460,000 after purchasing an additional 15,100 shares in the last quarter. Wellington Management Group LLP acquired a new stake in Bank of Nova Scotia during the 2nd quarter worth approximately $354,379,000. Finally, Bank of America Corp DE purchased a new position in Bank of Nova Scotia in the second quarter valued at approximately $224,782,000. Hedge funds and other institutional investors own 49.13% of the company's stock.

Bank of Nova Scotia Company Profile

Bank of Nova Scotia, operating under the Scotiabank name, is a Canadian financial services company that provides banking and related services to individuals, businesses, institutions and governments. Its principal businesses include Canadian Banking, International Banking, Global Wealth Management and Global Banking and Markets.

The company offers personal and commercial deposit accounts, mortgages, consumer and business loans, credit cards, payments and other financial products. Through its wealth management operations, Scotiabank provides investment, advisory, brokerage and private banking services.

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