Bank of Nova Scotia (NYSE:BNS) Sees Unusually-High Trading Volume - What's Next?

Key Points

• Trading volume surged 119% to approximately 5.1 million shares, while Bank of Nova Scotia stock dipped 0.2% to $90.69.
• Analyst sentiment improved, with several firms upgrading the stock; the consensus rating is “Moderate Buy” with a $117 price target.
• The bank exceeded quarterly earnings and revenue estimates and announced a C$1.14 quarterly dividend, representing a 5.0% annualized yield.

Shares of Bank of Nova Scotia (The) (NYSE:BNS - Get Free Report) TSE: BNS saw unusually-strong trading volume on Monday. Approximately 5,086,319 shares changed hands during mid-day trading, an increase of 119% from the previous session's volume of 2,324,228 shares. The stock last traded at $90.6860 and had previously closed at $91.19.

Analyst Ratings Changes

BNS has been the subject of several research reports. National Bank Financial raised Bank of Nova Scotia from a "sector perform" rating to an "outperform" rating in a research note on Wednesday, August 26th. Keefe, Bruyette & Woods assumed coverage on Bank of Nova Scotia in a research report on Friday, August 21st. They set an "outperform" rating on the stock. Weiss Ratings raised Bank of Nova Scotia from a "buy (b+)" rating to a "buy (a-)" rating in a report on Tuesday, September 1st. Finally, TD Securities upgraded Bank of Nova Scotia from a "hold" rating to a "buy" rating in a research report on Tuesday, August 25th. One research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and two have given a Hold rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $117.00.

Bank of Nova Scotia Stock Down 0.2%

The firm has a market cap of $110.71 billion, a PE ratio of 16.46, a P/E/G ratio of 1.02 and a beta of 1.14. The company has a debt-to-equity ratio of 1.98, a current ratio of 1.04 and a quick ratio of 1.04. The business has a fifty day moving average price of $91.07 and a two-hundred day moving average price of $83.44.

Bank of Nova Scotia (NYSE:BNS - Get Free Report) TSE: BNS last announced its quarterly earnings data on Tuesday, August 25th. The bank reported $1.64 earnings per share (EPS) for the quarter, topping the consensus estimate 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 firm had revenue of $7.52 billion during the quarter, compared to the consensus estimate of $7.11 billion. During the same period in the prior year, the business earned $1.84 EPS. The business's revenue for the quarter was up 11.1% on a year-over-year basis. On average, analysts anticipate that Bank of Nova Scotia will post 6.19 EPS for the current fiscal year.

Bank of Nova Scotia Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, October 28th. Shareholders of record on Tuesday, October 6th will be paid a C$1.14 dividend. The ex-dividend date is Tuesday, October 6th. This represents a $4.56 dividend on an annualized basis and a yield of 5.0%. Bank of Nova Scotia's payout ratio is 58.05%.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of BNS. Versant Capital Management Inc raised its holdings in shares of Bank of Nova Scotia by 1.2% during the 3rd 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 in the last quarter. Andra AP fonden boosted its holdings in Bank of Nova Scotia by 2.7% in the second quarter. Andra AP fonden now owns 220,260 shares of the bank's stock worth $19,127,000 after purchasing an additional 5,700 shares in the last quarter. Wellington Altus USA Inc. increased its position in Bank of Nova Scotia by 84.4% during the second quarter. Wellington Altus USA Inc. now owns 8,372 shares of the bank's stock worth $727,000 after buying an additional 3,831 shares during the last quarter. Tidal Investments LLC raised its holdings in Bank of Nova Scotia by 7.7% during the second quarter. Tidal Investments LLC now owns 20,205 shares of the bank's stock valued at $1,755,000 after buying an additional 1,437 shares in the last quarter. Finally, Engineers Gate Manager LP bought a new position in Bank of Nova Scotia during the second quarter valued at about $822,000. Institutional investors and hedge funds own 49.13% of the company's stock.

About Bank of Nova Scotia

Bank of Nova Scotia, commonly known as Scotiabank, is a Canadian financial services company headquartered in Toronto, Ontario. Founded in 1832, it is one of Canada's largest banks and provides a broad range of banking and financial services to individuals, businesses, institutions and governments.

Scotiabank's principal activities include Canadian personal and commercial banking, wealth management, and global banking and markets. Its products and services include deposit accounts, residential mortgages, consumer and business loans, credit cards, investment and advisory services, foreign exchange, capital markets and corporate finance.

The bank serves customers across Canada and maintains international operations, particularly in Mexico, Peru, Chile and selected markets in the Caribbean and Central America.

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