Dunelm Group (LON:DNLM) Trading Down 17.1% – Time to Sell?

Dunelm Group plc (LON:DNLM)’s share price traded down 17.1% during trading on Thursday . The stock traded as low as GBX 947.50 and last traded at GBX 970. 3,992,526 shares traded hands during mid-day trading, an increase of 251% from the average session volume of 1,136,339 shares. The stock had previously closed at GBX 1,170.

More 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 research analysts have recently issued reports on DNLM shares. UBS Group reaffirmed a “buy” rating and issued a GBX 1,360 price objective on shares of Dunelm Group in a research note on Friday, October 17th. Royal Bank Of Canada upgraded shares of Dunelm Group to an “outperform” rating and upped their price target for the company from GBX 1,200 to GBX 1,300 in a research report on Monday, November 3rd. Jefferies Financial Group lifted their price target on shares of Dunelm Group from GBX 1,755 to GBX 1,817 and gave the stock a “hold” rating in a report on Tuesday, October 28th. Berenberg Bank reduced their price objective on shares of Dunelm Group from GBX 1,480 to GBX 1,425 and set a “buy” rating on the stock in a research note on Friday. Finally, Shore Capital reaffirmed a “buy” rating on shares of Dunelm Group in a research report on Thursday. Six analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to MarketBeat, Dunelm Group presently has a consensus rating of “Moderate Buy” and an average target price of GBX 1,390.25.

Dunelm Group Stock Performance

The firm 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 company has a current ratio of 1.04, a quick ratio of 0.16 and a debt-to-equity ratio of 236.84. The business’s 50 day simple moving average is GBX 1,110.15 and its two-hundred day simple moving average is GBX 1,139.24.

Insider Buying and Selling

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

About Dunelm Group

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.