Bank of Nova Scotia (NYSE:BNS) Stock Price Crosses Above 50 Day Moving Average - Here's Why

Key Points

• BNS climbed above its 50-day moving average, trading as high as $93.84 and last at $93.30, compared with a 50-day average of $92.41.
• Analyst sentiment is moderately positive: the consensus rating is “Moderate Buy”, with a $105.50 price target. Recent quarterly EPS of $1.64 and revenue of $7.52 billion both exceeded analyst estimates.
• The bank paid a quarterly dividend of C$1.14 per share, representing a 4.9% yield, and authorized a buyback of up to 40 million shares, or 3.3% of shares outstanding.

Shares of Bank of Nova Scotia (The) (NYSE:BNS - Get Free Report) TSE: BNS passed above its fifty day moving average during trading on Monday. The stock has a fifty day moving average of $92.41 and traded as high as $93.84. Bank of Nova Scotia shares last traded at $93.3010, with a volume of 1,852,521 shares trading hands.

Analyst Ratings Changes

Several research firms have recently issued reports on BNS. 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 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. TD raised shares of Bank of Nova Scotia to a "buy" rating in a research note on Wednesday, August 26th. National Bank Financial upgraded shares of Bank of Nova Scotia from a "sector perform" rating to an "outperform" rating in a report on Wednesday, August 26th. Finally, Keefe, Bruyette & Woods assumed coverage on shares of Bank of Nova Scotia in a research note on Friday, August 21st. They issued an "outperform" rating for the company. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $105.50.

Bank of Nova Scotia Stock Up 1.8%

The company has a quick ratio of 1.04, a current ratio of 1.04 and a debt-to-equity ratio of 1.98. The company has a market capitalization of $113.43 billion, a price-to-earnings ratio of 16.88, a P/E/G ratio of 0.97 and a beta of 1.14. The stock's fifty day moving average price is $92.41 and its 200-day moving average price is $82.94.

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 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 business had revenue of $7.52 billion for the quarter, compared to the consensus estimate of $7.11 billion. During the same quarter in the previous year, the business earned $1.84 earnings per share. Bank of Nova Scotia's quarterly revenue was up 11.1% on a year-over-year basis. On average, sell-side 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 company also recently announced a quarterly dividend, which was paid on Wednesday, October 28th. Investors of record on Tuesday, October 6th were issued a dividend of C$1.14 per share. This represents a $4.56 dividend on an annualized basis and a yield of 4.9%. The ex-dividend date was Tuesday, October 6th. Bank of Nova Scotia's payout ratio is presently 57.87%.

Bank of Nova Scotia declared that its Board of Directors has authorized a share buyback program on Friday, October 2nd that permits the company to buy back 40,000,000 shares. This buyback authorization permits the bank to reacquire up to 3.3% of its shares through open market purchases. Stock buyback programs are often a sign that the company's leadership believes its stock is undervalued.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the business. Alberta Investment Management Corp grew its position in Bank of Nova Scotia by 34.3% during the third quarter. Alberta Investment Management Corp now owns 2,741,396 shares of the bank's stock worth $249,296,000 after buying an additional 700,710 shares in the last quarter. Bessemer Group Inc. increased its position in shares of Bank of Nova Scotia by 17.9% in the third quarter. Bessemer Group Inc. now owns 80,021 shares of the bank's stock worth $7,289,000 after purchasing an additional 12,168 shares during the period. Allworth Financial LP increased its position in shares of Bank of Nova Scotia by 38.5% in the third quarter. Allworth Financial LP now owns 1,528 shares of the bank's stock worth $133,000 after purchasing an additional 425 shares during the period. Russell Investments Group Ltd. raised its stake in Bank of Nova Scotia by 0.8% in the third quarter. Russell Investments Group Ltd. now owns 1,359,916 shares of the bank's stock valued at $125,041,000 after purchasing an additional 10,878 shares in the last quarter. Finally, Ritholtz Wealth Management raised its stake in Bank of Nova Scotia by 15.6% in the third quarter. Ritholtz Wealth Management now owns 41,322 shares of the bank's stock valued at $3,754,000 after purchasing an additional 5,591 shares in the last quarter. 49.13% of the stock is owned by institutional investors and hedge funds.

About Bank of Nova Scotia

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