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

The Bank of Nova Scotia (TSE:BNS) recently saw its stock price rise above the crucial 200-day moving average during trading on a Friday. This moving average, which is often seen as an indicator of a longer-term trend, currently sits at C$66.18, while the stock reached a high of C$72.90 during the day. The final trading price for Bank of Nova Scotia shares was C$71.99, with a significant volume of approximately 3,981,734 shares exchanged.

Recent Analyst Ratings

Bank of Nova Scotia has been featured in various research reports recently. Jefferies Financial Group adjusted its price target for the bank's shares, raising it from C$65.00 to C$69.00 while maintaining a "hold" rating. CIBC World Markets upgraded the shares from a "hold" to a "strong-buy" on September 20th. Similarly, TD Securities revised their target price from C$69.00 to C$71.00, continuing with a "hold" rating. CIBC also made significant changes, upgrading the stock from "neutral" to "outperform" and lifting the price target from C$78.00 to C$82.00. Royal Bank of Canada increased its target from C$62.00 to C$65.00, keeping a "sector perform" rating. Overall, out of 13 analysts, eleven suggest holding the stock, one recommends buying, and one views it as a strong buy. The consensus rating remains "Hold" with an average price target of C$68.25.

Recent Performance and Financials

Currently, Bank of Nova Scotia's stock has a market capitalization of C$89.27 billion. It exhibits a price-to-earnings (PE) ratio of 12.61, a price-to-earnings-growth ratio of 1.33, and a beta of 0.97. The 50-day moving average stands at C$69.81, reflecting more recent price changes. When Bank of Nova Scotia reported its quarterly earnings on August 27th, it posted earnings of C$1.63 per share, aligning with market expectations. However, their revenue of C$8.36 billion slightly fell short of the anticipated C$8.50 billion. The bank achieved a return on equity of 9.49% and a net margin of 25.38%. Analysts forecast earnings per share of approximately 7.13 for the current year.

Dividend Information

Recently, Bank of Nova Scotia announced a quarterly dividend of C$1.06 per share, set to be paid on October 29th to shareholders on record by October 2nd. This translates to an annualized dividend of C$4.24, yielding around 5.89%. Currently, the bank's payout ratio stands at 74.26%, indicating a significant commitment to returning value to shareholders.

About Bank of Nova Scotia

The Bank of Nova Scotia provides a wide range of banking products and services across various regions, including Canada, the United States, and several Latin American countries such as Peru and Colombia, as well as in the Caribbean. Their operations are divided into segments such as Canadian Banking, International Banking, Global Wealth Management, and Global Banking and Markets.

Should You Consider Selling?

With Bank of Nova Scotia recently surpassing its 200-day moving average, investors face an important decision. While its recent performance in terms of share price and dividends is encouraging, the current analyst consensus remains mixed. For those considering a sale, it may be wise to weigh their investment goals against the bank's recent analyst ratings and financial metrics. Moreover, as some analysts suggest other investments, interested investors should explore those alternative options before making a final decision.

Bank, Stocks, Dividends