Dunelm Group (LON:DNLM) Shares Down 17.7% – What’s Next?

Shares of Dunelm Group plc (LON:DNLM) fell 17.7% during trading on Thursday . The company traded as low as GBX 956 and last traded at GBX 963. 2,350,713 shares were traded during mid-day trading, an increase of 142% from the average session volume of 972,158 shares. The stock had previously closed at GBX 1,170.

Key Headlines Impacting Dunelm Group

Here are the key news stories impacting Dunelm Group this week:

• Positive Sentiment: Shore Capital reaffirmed a “buy” rating on Dunelm, providing some support from a retail broker and cushioning the sell‑off. Shore Capital Reaffirmation
• Neutral Sentiment: Berenberg trimmed its price target from GBX 1,480 to GBX 1,425 but kept a “buy” rating — a mild downgrade in expected upside that tempers investor enthusiasm without changing the positive recommendation. Berenberg Target Cut
• Negative Sentiment: Reporting and market reaction: coverage notes Dunelm shares “tumbled” after management flagged that festive demand weakened and Q2 sales growth slowed, with full‑year profit now expected at the low end of prior guidance — this operational update is the core reason for the downward pressure. Investors Chronicle: Festive Demand Hit
• Negative Sentiment: Market reaction piece reporting a steep intraday decline (about 19.5% in one report), reflecting investor selling after the trading statement and amplifying volatility. American Banking News: Trading Down
• Negative Sentiment: Earnings/forecast coverage: a detailed note warns Q2 sales growth slowed and reiterates the warning that full‑year profit will sit at the low end of expectations — this is the fundamental catalyst for the sell‑off. Investing.com: Q2 Sales Slow

Wall Street Analysts Forecast Growth

Several research firms have weighed in on DNLM. JPMorgan Chase & Co. increased their price objective on Dunelm Group from GBX 1,140 to GBX 1,240 and gave the stock a “neutral” rating in a research report on Tuesday, October 28th. Jefferies Financial Group lifted their price target on Dunelm Group from GBX 1,755 to GBX 1,817 and gave the company a “hold” rating in a research note on Tuesday, October 28th. Shore Capital reissued a “buy” rating on shares of Dunelm Group in a report on Thursday. UBS Group reaffirmed a “buy” rating and set a GBX 1,360 price objective on shares of Dunelm Group in a research note on Friday, October 17th. Finally, Royal Bank Of Canada upgraded shares of Dunelm Group to an “outperform” rating and lifted their target price for the company from GBX 1,200 to GBX 1,300 in a research report on Monday, November 3rd. Six investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of GBX 1,390.25.

Dunelm Group Stock Performance

The stock has a market capitalization of £1.91 billion, a PE ratio of 12.34, a PEG ratio of -10.32 and a beta of 1.18. The company has a debt-to-equity ratio of 236.84, a current ratio of 1.04 and a quick ratio of 0.16. The business has a 50 day moving average price of GBX 1,110.15 and a 200 day moving average price of GBX 1,139.24.

Insider Activity at Dunelm Group

In other Dunelm Group news, insider Luisa Wright sold 2,257 shares of Dunelm Group stock in a transaction that occurred on Monday, November 10th. The shares were sold at an average price of GBX 1,121, for a total value of £25,300.97. Also, insider Karen Witts acquired 10,790 shares of the business’s stock in a transaction that occurred on Monday, December 1st. The stock was purchased at an average cost of GBX 1,104 per share, with a total value of £119,121.60. Over the last quarter, insiders have acquired 17,790 shares of company stock worth $20,056,160 and have sold 61,854 shares worth $70,913,541. Company insiders own 34.16% of the company’s stock.

Dunelm Group Company Profile

Dunelm is the UK’s market leader in homewares with a purpose ‘to help create the joy of truly feeling at home, now and for generations to come’. Its specialist customer proposition offers value, quality, choice and style across an extensive range of c.70,000 products, spanning multiple homewares and furniture categories and including services such as Made to Measure window treatments.

The business was founded in 1979 by the Adderley family, beginning as a curtains stall on Leicester market before expanding its store footprint.