Bank of Nova Scotia (TSE:BNS) Stock Crosses Above Two Hundred Day Moving Average - Should You Sell?

The Bank of Nova Scotia (TSE:BNS - Get Free Report) has recently seen its stock price move above the 200-day moving average during trading, a notable event for investors. The 200-day moving average stands at C$66.18, while the stock reached a peak of C$72.90 during the trading session. Currently, shares of Bank of Nova Scotia are trading at C$71.99, with a substantial trading volume of over 3.9 million shares.

Analyst Ratings Changes

Bank of Nova Scotia has been the subject of numerous research reports from analysts. Jefferies Financial Group recently raised their price target for the stock from C$65.00 to C$69.00, maintaining a "hold" rating. On September 20th, CIBC World Markets upgraded the stock from a "hold" to a "strong-buy" rating. Additionally, TD Securities also increased their price target from C$69.00 to C$71.00, while giving it a "hold" rating. CIBC further upgraded the bank's shares from a "neutral" to an "outperform" rating and upped their price target from C$78.00 to C$82.00. Finally, Royal Bank of Canada adjusted their price target from C$62.00 to C$65.00 and rated the stock as "sector perform." Overall, eleven research analysts have rated Bank of Nova Scotia with a hold rating, one with a buy rating, and another with a strong buy rating, leading to a consensus rating of "Hold" and a consensus price target of C$68.25 according to MarketBeat data.

Bank of Nova Scotia Trading Overview

Presently, Bank of Nova Scotia holds a market capitalization of C$89.27 billion, with a price-to-earnings (PE) ratio of 12.61. The bank's price-to-earnings-growth (PEG) ratio is 1.33, and it boasts a beta of 0.97, indicating moderate risk compared to the market. The stock has a 50-day moving average price of C$69.81, in contrast to the 200-day moving average of C$66.18.

On August 27th, the Bank of Nova Scotia announced its quarterly earnings, reporting earnings per share (EPS) of C$1.63, aligning with the analysts' consensus estimates. The bank generated C$8.36 billion in revenue, slightly below the expected C$8.50 billion. The return on equity was reported at 9.49%, with a net margin of 25.38%. Analysts predict that the bank will post earnings per share of approximately 7.13 for the current fiscal year.

Dividend Information

Additionally, the Bank of Nova Scotia declared a quarterly dividend, set to be distributed on October 29th. Shareholders on record by October 2nd will receive a dividend of C$1.06, with the ex-dividend date also being October 2nd. This equates to an annualized dividend of C$4.24, resulting in a yield of 5.89%. The payout ratio for the bank currently stands at 74.26%.

About Bank of Nova Scotia

The Bank of Nova Scotia provides a wide range of banking products and services across Canada, the United States, Mexico, and several South American and Caribbean countries. It operates through various segments, including Canadian Banking, International Banking, Global Wealth Management, and Global Banking and Markets.

Investment Considerations

Investors looking to make a decision about Bank of Nova Scotia should consider the recent performance and ratings from analysts. Despite the stock's current hold rating, there are suggestions from top analysts indicating that there may be preferable investment opportunities elsewhere.

Final Thoughts

In conclusion, if you are considering investing in Bank of Nova Scotia, it would be wise to analyze both current market conditions and the insights from equity analysts. By weighing these factors, you can make a more informed decision on whether to hold or sell your shares in this bank.

Bank, Stock, Investment