Yes it does. Are you sure you applied it to the right event and not the player.
I even just tested it, though I was positive beforehand. Assuming we're talking about the same thing, it absolutely works.
The only reason I could think of for you that it wouldn't work is that instead of checking the stop animation box, you had turned it on through a custom move event. Just to be sure you're doing it right, I attached a screenshot and circled the way it should be properly done. If you do that, then a move event will definitely turn it off.