The Bank of Nova Scotia (BNS)’s Vital Spot Is 62.16% Away

The Bank of Nova Scotia (NYSE:BNS) reaches $69.83B market cap as shares jumped 0.05% in recent session. It closed at $57.35, after slipping as low as $57.03 through the day. The shares were pushed to an intraday high Friday at $57.41. Trading activity significantly weakened as the volume at ready counter decreased to 645,253 shares versus 892,490 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 762,132 shares. The stock is now 2.69% above against its bear-market low of $55.85 on February 07, 2018. It has retreated -16.44% since it’s 52-week high of $66.78 reached in January. Now the market price is down -7.05% on the year and down -11.13% YTD.

BNS’s 50 day simple moving average (SMA 50) price is $59.38 and its 200-day simple moving average (SMA 200) price is $62.54. The company’s stock currently has a total float of 1.22B shares. Its weekly volatility is hovering around 0.79% and felt 0.96% volatility in price over a month. On the upside, the share price will test short term resistance at around $57.5. On a downside, the stock is likely to find some support, which begins at $57.12. The failure to get near-term support could push it to $56.88.

The insider holding in The Bank of Nova Scotia (BNS) stood at 0.02% while institutions hold 65.5%. Royal Bank Of Canada is the largest single holder among mutual funds with ownership of over 87.91M BNS shares as of March 31, with a market value of approx. $5.42B as of today. The second largest holder, Bank Of Montreal /Can/, with 48.62M shares which equates to $3B worth of the stock. At third is Td Asset Management Inc, which stood pat with 37.43M shares, a 3.3% position in The Bank of Nova Scotia, worth $2.3B.

On Senior Officer -21, Hart, Stephen Peter at BNS, purchased Sell shares at an average price of $0 per share. The new stake is valued at $545,513.

Wall Street’s most bullish The Bank of Nova Scotia (NYSE:BNS) analysts are predicting the share price to blow past $93 per share during the next 12 months. The current median share price forecast by them is $65, suggesting that the stock could increase 13.34% in that time frame. The average price target of $73.33 calls for a nearly 27.86% increase in the stock price.

It had seen a new analyst call from Macquarie, which initiated the stock at Outperform on October 24. Analysts at Citigroup, shed their negative views on September 20 by lifting it fromNeutral to Buy. Analysts at Canaccord Genuity, made their first call about the stock on July 18, recommending it is Buy.

When looking at valuations, The Bank of Nova Scotia (BNS) has a cheap P/E of 10.97x as compared to industry average of 17.81x. Moreover, it trades for 10.04 times the next 12 months of expected earnings. Also, it is trading at rather inexpensive levels at just over 1.58x price/book and 3.58x price/sales.Compared to others, The Bank of Nova Scotia is in a different league with regards to profitability, having net margins of 32.4%. To put some perspective around this, the industry’s average net margin is 32.3%. BNS’s ROE is 15%, which is also considerably worse than the industry’s ROE of 17.09%.

Shares of The Bank of Nova Scotia (BNS) have dropped -7.2% since the company’s Jul-18 earnings report. Over the past 12 fiscal quarters, The Bank of Nova Scotia (NYSE:BNS) has topped consensus earnings estimates in 10 quarters (83%), missed earnings in 1 quarters (8%), whereas at 1 occasion EPS met analyst expectations. BNS last reported earnings on May 29, 2018 when it released Apr-18 results that exceeded expectations. The company raked in $1.71 per share, -24.67% change on the same period last year. That was better than consensus for $1.67. Revenue for the recent quarter stood at $7.06 billion, up 7% on last year and above the $7 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $7.21 billion to $7.96 billion, which should be compared with $7.23 billion generated last year. EPS is seen in a range of $1.68 to $1.81, against the $1.76 reported a year ago.