How the Endeavour (ASX:EDV) share price has performed so far

The retail alcohol and hospitality company has had a wild ride since listing on the ASX.
The post How the Endeavour (ASX:EDV) share price has performed so far appeared first on The Motley Fool Australia. –

With more than 40 million shares bought and sold since floating on the ASX last Thursday, the Endeavour Group Ltd (ASX: EDV) share price has been quite active.

Listing on the ASX for a price of $6.50, it crashed on its opening day to a low of $5.77 before partially recovering to $6.02. The next day it surged to a high of $6.60 before retreating to $6.10.

Over the next two trading days, its share price closed higher at $6.33 before falling to a close of $6.20 the next.

Watching the drinks company’s share price over the past week could leave an investor feeling like they have a hangover. Let this article be your day-after tonic by bringing a little clarity to what’s happening to Endeavour shares.

Endeavour shares have been volatile

On its first trading day, the Endeavour share price took a beating. Woolworths Group Ltd (ASX: WOW) shares also fell 15% on the same day, a reflection of the fall in value from losing its drinks business. Endeavour was formed from Woolworths’ former drinks business and the AHL Group.

However, a closer examination shows it may not have been as bad a day as it appeared for shareholders in either company.

On the day of the float, eligible Woolworths’ shareholders received 1 share in Endeavour for every Woolworths share they owned. Woolworths and business partner BMG owned the remaining 14.6%.

The Woolworths market capitalisation on 23 June, the day before the demerger, was about $54 billion. At the close of trade on 24 June, the combined market caps of Woolworths and Endeavour was around $58.7 billion.

The initial sell-off may well have been savvy investors looking to cash in on shares that seemed to be valued much higher than the market might have suggested.

Subsequent price movements are likely the result of investors still gaining a better understanding of the Endeavour share price.

It should also be noted that 42% of Australia are in lockdown at the time of writing. This may have benefited the Woolworths share price recently and could be influencing the Endeavour price too.

While Endeavour owns many pubs and clubs, the majority of their business is derived from the Dan Murphy’s and BWS bottle shops which have historically done well during COVID lockdowns.

The post How the Endeavour (ASX:EDV) share price has performed so far appeared first on The Motley Fool Australia.

Should you invest $1,000 in Endeavour right now?

Before you consider Endeavour, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Endeavour wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of May 24th 2021

More reading

Afterpay and Zip were among the most traded ASX shares last week

Woolworths (ASX:WOW) share price on watch after broker downgrade
Why the Woolworths (ASX:WOW) share price is pushing higher today
Why Atomo, Metcash, Temple & Webster, & Woolworths are pushing higher

Temple & Webster share price surges with other ASX COVID winners

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!