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

Bank of Nova Scotia (The) (NYSE:BNS) (TSE:BNS)’s stock price reached 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 changing hands. The stock had previously closed at $94.54.

Analyst Upgrades and Downgrades

A number of research firms have issued reports on BNS. 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. TD upgraded shares of Bank of Nova Scotia to a “buy” rating in a research note 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. TD Securities raised Bank of Nova Scotia from a “hold” rating to a “buy” rating in a report on Tuesday, August 25th. Finally, Keefe, Bruyette & Woods initiated coverage on shares of Bank of Nova Scotia in a research report 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 issued a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat, Bank of Nova Scotia currently has an average rating of “Moderate Buy” and a consensus target price of $105.50.

Bank of Nova Scotia Price Performance

The company has a market cap of $116.68 billion, a price-to-earnings ratio of 17.37, a PEG ratio of 1.04 and a beta of 1.14. The company has a debt-to-equity ratio of 1.98, a quick ratio of 1.04 and a current ratio of 1.04. The company’s 50 day moving average price is $91.82 and its 200-day moving average price is $82.11.

Bank of Nova Scotia (NYSE:BNS) (TSE:BNS) last announced its earnings results on Tuesday, August 25th. The bank reported $1.64 EPS for the quarter, beating 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 business 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 posted $1.84 earnings per share. Bank of Nova Scotia’s revenue was up 11.1% compared to the same quarter last year. On average, equities research analysts forecast 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 announced a quarterly dividend, which was paid on Wednesday, October 28th. Stockholders of record on Tuesday, October 6th were issued a C$1.14 dividend. The ex-dividend date was Tuesday, October 6th. This represents a $4.56 dividend on an annualized basis and a dividend yield of 4.8%. Bank of Nova Scotia’s dividend payout ratio is currently 57.87%.

Bank of Nova Scotia announced that its board has initiated a share repurchase program on Friday, October 2nd that authorizes the company to repurchase 40,000,000 shares. This repurchase authorization authorizes the bank to purchase up to 3.3% of its shares through open market purchases. Share repurchase programs are usually a sign that the company’s leadership believes its shares are undervalued.

Institutional Investors Weigh In On Bank of Nova Scotia

Institutional investors have recently made changes to their positions in the company. Canada Pension Plan Investment Board acquired a new position in shares of Bank of Nova Scotia during the 2nd quarter valued at about $1,016,738,000. Legal & General Group Plc bought a new position in Bank of Nova Scotia during the second quarter valued at about $709,837,000. Connor Clark & Lunn Investment Management Ltd. acquired a new stake in shares of Bank of Nova Scotia during the 2nd quarter worth approximately $567,278,000. The Manufacturers Life Insurance Company bought a new position in shares of Bank of Nova Scotia during the 2nd quarter worth about $416,397,000. Finally, Wellington Management Group LLP bought a new stake in shares of Bank of Nova Scotia in the 2nd quarter valued at approximately $354,379,000. 49.13% of the stock is currently owned by institutional investors and hedge funds.

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.