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

Key Points

• Bank of Nova Scotia shares reached a new 52-week high of $95.84, while analysts maintained a “Moderate Buy” consensus and an average price target of $105.50.
• The bank exceeded quarterly expectations, reporting EPS of $1.64 versus the $1.53 estimate and revenue of $7.52 billion, up 11.1% year over year.
• Investors receive a quarterly dividend of C$1.14 per share, representing a 4.8% yield, while the bank also authorized repurchases of up to 40 million shares, or 3.3% of outstanding stock.

Bank of Nova Scotia (The) (NYSE:BNS - Get Free Report) TSE: BNS's stock price hit a new 52-week high on Thursday. The company traded as high as $95.84 and last traded at $95.3560, with a volume of 88,678 shares. The stock had previously closed at $94.54.

Analyst Upgrades and Downgrades

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

Bank of Nova Scotia Stock Performance

The company has a market capitalization of $116.68 billion, a P/E ratio of 17.37, a price-to-earnings-growth ratio of 1.04 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. The company's 50 day moving average is $91.82 and its 200-day moving average is $82.11.

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

Bank of Nova Scotia Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, October 28th. Investors of record on Tuesday, October 6th were given a dividend of C$1.14 per share. This represents a $4.56 annualized dividend and a yield of 4.8%. 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 of Directors has initiated a stock repurchase plan on Friday, October 2nd that allows the company to repurchase 40,000,000 shares. This buyback authorization allows the bank to repurchase up to 3.3% of its shares through open market purchases. Stock buyback plans are often an indication that the company's leadership believes its shares are undervalued.

Institutional Investors Weigh In On Bank of Nova Scotia

A number of institutional investors and hedge funds have recently added to or reduced their stakes in BNS. 55 North Private Wealth LLC boosted its stake in Bank of Nova Scotia by 4.6% in the third quarter. 55 North Private Wealth LLC now owns 2,576 shares of the bank's stock valued at $234,000 after acquiring an additional 114 shares in the last quarter. Versant Capital Management Inc lifted its position in Bank of Nova Scotia by 1.2% in the third quarter. Versant Capital Management Inc now owns 10,460 shares of the bank's stock valued at $950,000 after purchasing an additional 119 shares during the period. Riversedge Advisors LLC boosted its stake in shares of Bank of Nova Scotia by 4.6% in the third quarter. Riversedge Advisors LLC now owns 2,825 shares of the bank's stock valued at $257,000 after buying an additional 125 shares in the last quarter. Park Avenue Securities LLC grew its stake in shares of Bank of Nova Scotia by 4.4% during the 3rd quarter. Park Avenue Securities LLC now owns 3,501 shares of the bank's stock worth $318,000 after purchasing an additional 148 shares during the period. Finally, State of Wyoming increased its holdings in Bank of Nova Scotia by 1.6% in the third quarter. State of Wyoming now owns 13,860 shares of the bank's stock valued at $1,263,000 after buying an additional 220 shares in the last quarter. 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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