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

Shares of Dunelm Group plc (LON:DNLM) fell 17.1% during mid-day trading on Thursday . The company traded as low as GBX 967.50 and last traded at GBX 969.87. 1,876,680 shares were traded during trading, an increase of 103% from the average session volume of 924,755 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” 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

DNLM has been the subject of several recent research reports. Royal Bank Of Canada upgraded Dunelm Group to an “outperform” rating and lifted their price target for the company from GBX 1,200 to GBX 1,300 in a research report on Monday, November 3rd. JPMorgan Chase & Co. upped their price target on Dunelm Group from GBX 1,140 to GBX 1,240 and gave the company a “neutral” rating in a research report on Tuesday, October 28th. Jefferies Financial Group increased 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. Shore Capital reaffirmed a “buy” rating on shares of Dunelm Group in a research note on Thursday. Finally, Berenberg Bank decreased their target price on shares of Dunelm Group from GBX 1,480 to GBX 1,425 and set a “buy” rating on the stock in a report on Friday. Six analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat.com, Dunelm Group currently has a consensus rating of “Moderate Buy” and a consensus target price of GBX 1,390.25.

Dunelm Group Stock Performance

The company’s 50-day moving average is GBX 1,110.15 and its two-hundred day moving average is GBX 1,139.24. The company has a market capitalization of £1.91 billion, a P/E ratio of 12.34, a PEG ratio of -10.32 and a beta of 1.18. The company has a quick ratio of 0.16, a current ratio of 1.04 and a debt-to-equity ratio of 236.84.

Insider Activity at Dunelm Group

In related news, insider Daniel Taylor acquired 4,000 shares of the stock in a transaction dated Monday, November 3rd. The shares were purchased at an average price of GBX 1,163 per share, for a total transaction of £46,520. Also, insider Clodagh Moriarty sold 51,119 shares of the company’s stock in a transaction on Monday, October 27th. The stock was sold at an average price of GBX 1,148, for a total transaction of £586,846.12. In the last 90 days, insiders have bought 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 currently owned by corporate insiders.

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.