Bank of Nova Scotia (NYSE:BNS) Hits New 52-Week High – Still a Buy?

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

Analyst Upgrades and Downgrades

Several equities analysts have weighed in on BNS shares. Weiss Ratings raised Bank of Nova Scotia from a “buy (a-)” rating to a “buy (a)” rating in a research report on Thursday, October 8th. National Bank Financial upgraded Bank of Nova Scotia from a “sector perform” rating to an “outperform” rating in a research report on Wednesday, August 26th. TD raised Bank of Nova Scotia to a “buy” 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. Finally, Keefe, Bruyette & Woods started coverage on Bank of Nova Scotia in a research report on Friday, August 21st. They set an “outperform” rating for the company. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and four have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $105.50.

Bank of Nova Scotia Stock Down 1.7%

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 firm has a market cap of $114.12 billion, a PE ratio of 16.97, a P/E/G ratio of 1.07 and a beta of 1.14. The firm’s 50 day moving average is $92.12 and its 200-day moving average is $82.33.

Bank of Nova Scotia (NYSE:BNS) (TSE:BNS) last announced its earnings results on Tuesday, August 25th. The bank reported $1.64 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.53 by $0.11. The firm had revenue of $7.52 billion for 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%. Bank of Nova Scotia’s revenue was up 11.1% compared to the same quarter last year. During the same quarter last year, the business earned $1.84 earnings per share. As a group, equities research analysts expect that Bank of Nova Scotia will post 6.19 earnings per share for the current fiscal year.

Bank of Nova Scotia Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, October 28th. Stockholders of record on Tuesday, October 6th were issued a dividend of C$1.14 per share. The ex-dividend date was Tuesday, October 6th. This represents a $4.56 annualized dividend and a dividend yield of 4.9%. Bank of Nova Scotia’s dividend payout ratio (DPR) is 57.87%.

Bank of Nova Scotia announced that its board has initiated a stock repurchase program on Friday, October 2nd that allows the company to buy back 40,000,000 outstanding shares. This buyback authorization allows the bank to purchase up to 3.3% of its shares through open market purchases. Stock buyback programs are typically a sign that the company’s board believes its shares are undervalued.

Hedge Funds Weigh In On Bank of Nova Scotia

Several institutional investors have recently added to or reduced their stakes in BNS. Ascent Group LLC increased its holdings in shares of Bank of Nova Scotia by 6.6% during the 3rd quarter. Ascent Group LLC now owns 4,414 shares of the bank’s stock worth $401,000 after buying an additional 274 shares during the last quarter. Vise Technologies Inc. acquired a new position in Bank of Nova Scotia in the third quarter valued at $2,852,000. MGO One Seven LLC grew its position in Bank of Nova Scotia by 6.4% during the third quarter. MGO One Seven LLC now owns 4,233 shares of the bank’s stock valued at $384,000 after acquiring an additional 254 shares during the period. State of Wyoming grew its position in Bank of Nova Scotia by 1.6% during the third quarter. State of Wyoming now owns 13,860 shares of the bank’s stock valued at $1,263,000 after acquiring an additional 220 shares during the period. Finally, SYM FINANCIAL Corp grew its position in Bank of Nova Scotia by 9.6% during the third quarter. SYM FINANCIAL Corp now owns 2,693 shares of the bank’s stock valued at $245,000 after acquiring an additional 236 shares during the period. 49.13% of the stock is currently owned by institutional investors and hedge funds.

About Bank of Nova Scotia

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.