Dunelm Group (LON:DNLM) Shares Down 19.5% – Should You Sell?

Dunelm Group plc (LON:DNLM)’s stock price fell 19.5% during trading on Thursday . The stock traded as low as GBX 941.50 and last traded at GBX 941.50. 3,370,358 shares changed hands during trading, an increase of 214% from the average session volume of 1,074,123 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

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on the stock. Jefferies Financial Group lifted their price objective on shares of 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. Royal Bank Of Canada upgraded Dunelm Group to an “outperform” rating and raised their target price for the company from GBX 1,200 to GBX 1,300 in a research note on Monday, November 3rd. Shore Capital reiterated a “buy” rating on shares of Dunelm Group in a research note on Thursday. JPMorgan Chase & Co. raised their price objective 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. Finally, UBS Group restated a “buy” rating and set a GBX 1,360 price objective on shares of Dunelm Group in a report on Friday, October 17th. Six equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat, Dunelm Group presently has a consensus rating of “Moderate Buy” and a consensus target price of GBX 1,390.25.

Dunelm Group Trading Up 0.7%

The company has a market cap of £1.91 billion, a P/E ratio of 12.34, a P/E/G 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 1,139.24. The company has a debt-to-equity ratio of 236.84, a quick ratio of 0.16 and a current ratio of 1.04.

Insider Buying and Selling

In other news, insider Karen Witts bought 10,790 shares of Dunelm Group stock in a transaction 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. Also, insider Luisa Wright sold 2,257 shares of the company’s stock in a transaction that occurred on Monday, November 10th. The stock was sold at an average price of GBX 1,121, for a total value of £25,300.97. Over the last three months, insiders bought 17,790 shares of company stock valued at $20,056,160 and sold 61,854 shares valued at $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.