ASX stock of the day: Event (ASX:EVT) shares are shooting higher

The Event Hospitality and Entertainment Ltd (ASX:EVT) share price has taken off today. Here's why Event shares are booming.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Event Hospitality and Entertainment Ltd (ASX: EVT) share price is having a wild day. Event shares closed at $11.06 yesterday but opened at $11.77 this morning.  The share price has been bouncing around this level ever since, despite a quick but sharp drop to $11.31 soon after market open.

Event shares are trading at $11.74 at the time of writing, a 6.15% rise for the day. Today's move caps off what has been a great, if volatile, year for the company. Event was hard-hit in the coronavirus-induced market crash last year. The company bottomed out at a share price of $5.44 back on 23 March 2020. But it has been onwards and upwards for Event from there. Since 23 March, Event shares are up a healthy 115% going off of today's pricing.

So who is Event? And why are the company's shares doing so well today?

Cinemas and resorts hard hit

Event Hospitality is, as its name implies, a company that runs hotels and movie cinemas. You have probably seen one of its cinemas in at least one of the country's major towns and cities, given there are 142 spread across Australia, as well as New Zealand. The company also operates the Rydges, QT and Atura hotel and resort chains and the Thredbo Alpine Resort near the Thredbo ski fields.

Event can also boast the State Theatre in Sydney in its portfolio, which was originally opened in 1929 and is now one of Australia's oldest and most famous theatres.

As you might imagine, Event was not a company that escaped the pandemic and its associated lockdowns and social gathering restrictions lightly. Just last month, Event reported that revenues were down 58% over the six months to 31 December 2020 compared with the prior period in 2019. However, the company did manage to cut costs drastically, going from burning $20 million a month over March-June to $5 million a month over the six months to December.

Why is the Event share price rising then?

Given these not-too-encouraging statistics from the company's earnings report, why is the Event share price on the move today? It's not just today either, actually. Event shares are up 18.2% over the past month and 22% over 2021 so far.

Well, the company has not made any major market announcements since its earnings on 18 February. Thus, we can probably put investors growing enthusiasm down to coronavirus optimism—specifically, the snowballing rollout of coronavirus vaccines around the country and the world.

Since the Christmas time Northern Beaches outbreak in New South Wales, Australia has not had a major virus outbreak. That might explain the positive year-to-date share price performance for Event. Today, we have just had an announcement of a tourism stimulus package from the federal government. This includes cut-cost airline tickets, as well as other stimulatory measures for the tourism sector. This could also be feeding into market optimism for Event as well.

Whatever the reasons, I'm sure Event shareholders are pleased with what 2021 has brought so far, especially with today's Event share price moves. At the current price, the company has a market capitalisation of ~$1.88 billion.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the 'five best ASX stocks' for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

The silhouettes of ten people holding hands with their arms raised against the sky, as the sun rises or sets in the background.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX shares finished the trading week on a high this Friday.

Read more »

A businessman stacks building blocks.
Technology Shares

6% gain! What's up with Block shares today?

Block shares are up more than 34% since 2 May.

Read more »

Broker looking at the share price.
Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A young man punches the air in delight as he reacts to great news on his mobile phone.
Share Gainers

Why ARB, Block, Mayne Pharma, and Paladin Energy shares are charging higher today

These shares are having a strong finish to the week. But why?

Read more »

A woman puts her hands up as she smashes and breaks through a glass ceiling.
Share Gainers

How these 5 ASX 200 stocks are smashing the benchmark this week

These fives ASX 200 stocks have made some very happy shareholders this week. Here’s how.

Read more »

Bored man sitting at his desk with his laptop.
Share Fallers

Why Catalyst Metals, Duratec, Nufarm, and Rio Tinto shares are dropping today

These shares are ending the week in the red. But why?

Read more »

A smiling woman at a hardware shop selects paint colours from a wall display.
Broker Notes

After its strategy day, what does Macquarie think Wesfarmers shares are worth?

Let's see what the broker is saying about this blue chip.

Read more »

Buy, hold, and sell ratings written on signs on a wooden pole.
Technology Shares

After surging 13% yesterday, are TechnologyOne shares a buy, hold or sell according to Macquarie?

Valuations matter when investing, and Macquarie feels no different.

Read more »