Bank of Nova Scotia (NYSE:BNS) Hits New 1-Year High – What’s Next?

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

Wall Street Analyst Weigh In

BNS has been the subject of several recent research reports. Weiss Ratings upgraded Bank of Nova Scotia from a “buy (a-)” rating to a “buy (a)” rating in a report on Thursday, October 8th. TD raised Bank of Nova Scotia to a “buy” rating in a research report on Wednesday, August 26th. National Bank Financial upgraded Bank of Nova Scotia from a “sector perform” rating to an “outperform” rating in a report on Wednesday, August 26th. 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 Securities upgraded shares of Bank of Nova Scotia from a “hold” rating to a “buy” rating in a research note on Tuesday, August 25th. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and four have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $105.50.

Bank of Nova Scotia Stock Up 3.0%

The stock has a market capitalization of $117.27 billion, a P/E ratio of 17.46, a P/E/G ratio of 0.95 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 stock’s 50 day simple moving average is $92.38 and its 200 day simple moving average is $82.54.

Bank of Nova Scotia (NYSE:BNS) (TSE:BNS) last issued its quarterly earnings results on Tuesday, August 25th. The bank reported $1.64 EPS for the quarter, topping the consensus estimate of $1.53 by $0.11. The business had revenue of $7.52 billion for the quarter, compared to analysts’ expectations of $7.11 billion. Bank of Nova Scotia had a net margin of 13.91% and a return on equity of 16.12%. The company’s quarterly revenue was up 11.1% compared to the same quarter last year. During the same quarter last year, the company posted $1.84 earnings per share. As a group, research analysts predict 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 declared 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 dividend yield of 4.7%. The ex-dividend date of this dividend was Tuesday, October 6th. Bank of Nova Scotia’s dividend payout ratio is currently 57.87%.

Bank of Nova Scotia declared that its board has approved a share repurchase program on Friday, October 2nd that allows the company to repurchase 40,000,000 outstanding shares. This repurchase authorization allows the bank to buy up to 3.3% of its shares through open market purchases. Share repurchase programs are usually an indication that the company’s leadership believes its shares are undervalued.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the business. CoreCap Advisors LLC grew its holdings in shares of Bank of Nova Scotia by 1,366.7% during the second quarter. CoreCap Advisors LLC now owns 440 shares of the bank’s stock valued at $38,000 after purchasing an additional 410 shares during the last quarter. Addison Advisors LLC bought a new stake in shares of Bank of Nova Scotia in the 2nd quarter worth approximately $39,000. Global Retirement Partners LLC bought a new stake in shares of Bank of Nova Scotia in the 2nd quarter worth approximately $46,000. Jones Financial Companies Lllp acquired a new position in Bank of Nova Scotia during the 2nd quarter valued at approximately $61,000. Finally, Allworth Financial LP acquired a new position in Bank of Nova Scotia during the 2nd quarter valued at approximately $96,000. 49.13% of the stock is currently owned by institutional investors.

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.