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

Dunelm Group plc (LON:DNLM)’s share price traded down 19.5% during mid-day trading on Thursday . The company traded as low as GBX 941.50 and last traded at GBX 941.50. 3,357,217 shares were traded during mid-day trading, an increase of 213% from the average session volume of 1,072,808 shares. The stock had previously closed at GBX 1,170.

Key Stories Impacting Dunelm Group

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

Wall Street Analyst Weigh In

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 report on Tuesday, October 28th. Royal Bank Of Canada raised Dunelm Group to an “outperform” rating and raised their price target for the stock from GBX 1,200 to GBX 1,300 in a research note on Monday, November 3rd. Shore Capital reissued a “buy” rating on shares of Dunelm Group in a research report on Thursday. Jefferies Financial Group upped their price objective 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. Finally, UBS Group reaffirmed a “buy” rating and set a GBX 1,360 target price on shares of Dunelm Group in a research note on Friday, October 17th. Six equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, Dunelm Group has an average rating of “Moderate Buy” and a consensus price target of GBX 1,397.13.

Dunelm Group Trading Down 19.5%

The stock has a 50-day moving average of GBX 1,117.28 and a two-hundred day moving average of GBX 1,142.28. The company has a debt-to-equity ratio of 236.84, a quick ratio of 0.16 and a current ratio of 1.04. The company has a market cap of £1.90 billion, a P/E ratio of 12.26, a price-to-earnings-growth ratio of -10.32 and a beta of 1.18.

Insider Activity

In other news, insider Karen Witts bought 10,790 shares of the company’s stock in a transaction dated Monday, December 1st. The shares were purchased at an average price of GBX 1,104 per share, for a total transaction of £119,121.60. Also, insider Luisa Wright sold 2,257 shares of the 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 transaction of £25,300.97. Over the last ninety days, insiders acquired 17,790 shares of company stock valued at $20,056,160 and sold 61,854 shares valued at $70,913,541. 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.