As the Informa share price soars, is it still a good investment?

Informa (LON: INF) share price surged to the highest level since February 2020 after the company published strong results. The shares jumped to a high of 730p, meaning that they have jumped by more than 127% from the lowest level during the pandemic. They have jumped by almost 20% in 2020.

Business is booming

Informa, the leading events and publishing company, said that its business is doing well. In its trading statement, the company said that its revenue had grown by 24.5% in the first five months of the year, helped by Informa Markets, Informa Connect, and B2B markets. Its academic markets and informa tech revenue jumped by just 3% and 8.3%, respectively.

Most importantly, the company boosted its revenue guidance. It now expects that its revenue will grow by 7% this year to between £2.95 billion and £3.05 billion. Further, it hopes that its streamed portfolio will be higher than 2019 levels.

Informa has continued hosting events around the world. Its most important sectors in the industry are healthcare, packaging, aviation, food service, beauty, and hospitality.

The company also announced that it was paying a special dividend after it sold its intelligence division in a £2.5 billion deal. It will pay £1 billion to shareholders and then resume the ordinary dividends it paused during the Covid-19 pandemic. It is also buying back its own shares. In total, the company hopes to return £650 million to shareholders this year, up from last year’s £550 million.

Additionally, the management is seeking to grow the business through acquisitions. It will soon close the $940 million buyout of Tarsus, a company that does B2B event.

Informa seems like a good investment because of its strong cash returns to investors and its diversified business. Also, its B2B events business is expected to do well following the full reopening.

INF chart by TradingView

The daily chart shows that the INF share price has been in a strong bullish trend in the past few months. It managed to move above the important resistance level at 726.2p, the highest point on May 23rd. The shares have remained above the 50-day exponential moving average (EMA). It has also moved above the ascending trendline shown in green.

Therefore, there is a likelihood that the shares will likely continue rising as buyers target the next key resistance level at 800p. A move below the support at 725p will invalidate the bullish view.