Dunelm Group (LON:DNLM) Shares Down 19.5% – What’s Next?

Dunelm Group plc (LON:DNLM) shares dropped 19.5% on Thursday . The stock traded as low as GBX 941.50 and last traded at GBX 941.50. Approximately 3,357,217 shares changed hands during mid-day trading, an increase of 213% from the average daily volume of 1,072,808 shares. The stock had previously closed at GBX 1,170.

Key Dunelm Group News

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

Dunelm Group Price Performance

The stock has a market capitalization of £1.91 billion, a P/E ratio of 12.34, a price-to-earnings-growth ratio of -10.32 and a beta of 1.18. The business has a fifty day simple moving average of GBX 1,110.15 and a 200 day simple moving average of GBX 1,138.85. The company has a current ratio of 1.04, a quick ratio of 0.16 and a debt-to-equity ratio of 236.84.

Insider Buying and Selling

In other news, insider Karen Witts acquired 10,790 shares of the business’s stock in a transaction on Monday, December 1st. The shares were purchased at an average cost of GBX 1,104 per share, with a total value of £119,121.60. Also, insider Daniel Taylor bought 4,000 shares of Dunelm Group stock in a transaction dated Monday, November 3rd. The stock was purchased at an average price of GBX 1,163 per share, with a total value of £46,520. Over the last three months, insiders have acquired 17,790 shares of company stock worth $20,056,160 and have sold 61,854 shares worth $70,913,541. 34.16% of the stock is owned by corporate insiders.

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.