Dunelm Group (LON:DNLM) Stock Price Down 19.5% – Here’s Why

Dunelm Group plc (LON:DNLM) shares traded down 19.5% on Thursday . The company traded as low as GBX 941.50 and last traded at GBX 941.50. 3,370,358 shares traded hands during mid-day trading, an increase of 214% from the average session volume of 1,074,123 shares. The stock had previously closed at GBX 1,170.

Dunelm Group News Roundup

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

• Positive Sentiment: Shore Capital reaffirmed a “buy” on Dunelm, providing some analyst support that could limit downside if operational trends stabilise. Article Title
• Positive Sentiment: A technical note flagged that Dunelm’s share price crossed above its 200-day moving average, a bullish signal that may attract momentum or long-term technical buyers. Article Title
• Negative Sentiment: Investors Chronicle reports Dunelm shares tumbled after weaker festive-season demand, highlighting softer consumer spending in key categories that hit top-line momentum. Article Title
• Negative Sentiment: Company trading update: Q2 sales growth slowed and management warned full-year profit is likely at the low end of previous expectations — the primary driver of today’s heavy selling pressure. Article Title

Analysts Set New Price Targets

A number of research analysts recently commented on the stock. Shore Capital reaffirmed a “buy” rating on shares of Dunelm Group in a research report on Thursday. Royal Bank Of Canada upgraded shares of Dunelm Group to an “outperform” rating and boosted their price target for the company from GBX 1,200 to GBX 1,300 in a report on Monday, November 3rd. JPMorgan Chase & Co. upped their price target on shares of Dunelm Group from GBX 1,140 to GBX 1,240 and gave the stock a “neutral” rating in a research note on Tuesday, October 28th. Jefferies Financial Group lifted their price objective on 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. Finally, UBS Group reaffirmed a “buy” rating and issued a GBX 1,360 target price on shares of Dunelm Group in a research report on Friday, October 17th. Six research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of GBX 1,397.13.

Dunelm Group Stock Performance

The company has a market cap of £1.90 billion, a price-to-earnings ratio of 12.26, a P/E/G 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 firm has a fifty day simple moving average of GBX 1,117.28 and a 200 day simple moving average of GBX 1,142.28.

Insider Activity

In related news, insider Clodagh Moriarty sold 51,119 shares of Dunelm Group stock in a transaction on Monday, October 27th. The shares were sold at an average price of GBX 1,148, for a total value of £586,846.12. Also, insider Luisa Wright sold 2,257 shares of the business’s stock in a transaction on Monday, November 10th. The stock was sold at an average price of GBX 1,121, for a total transaction of £25,300.97. Over the last 90 days, insiders have acquired 17,790 shares of company stock valued at $20,056,160 and have sold 61,854 shares valued at $70,913,541. 34.16% of the stock is owned by 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.