Dunelm Group (LON:DNLM) Trading Down 18% – Here’s What Happened

Shares of Dunelm Group plc (LON:DNLM) were down 18% during mid-day trading on Thursday . The stock traded as low as GBX 947.50 and last traded at GBX 959.50. Approximately 4,143,358 shares changed hands during trading, an increase of 260% from the average daily volume of 1,151,423 shares. The stock had previously closed at GBX 1,170.

Dunelm Group News Summary

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 Analyst Weigh In

DNLM has been the subject of several recent analyst reports. Jefferies Financial Group raised 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. UBS Group reaffirmed a “buy” rating and set a GBX 1,360 price target on shares of Dunelm Group in a report on Friday, October 17th. Berenberg Bank reduced their price objective on Dunelm Group from GBX 1,480 to GBX 1,425 and set a “buy” rating on the stock in a research note on Friday. JPMorgan Chase & Co. raised their target price 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, Royal Bank Of Canada raised Dunelm Group to an “outperform” rating and lifted their price target for the company from GBX 1,200 to GBX 1,300 in a report on Monday, November 3rd. Six research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat, Dunelm Group presently has an average 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 capitalization of £1.91 billion, a price-to-earnings ratio of 12.34, 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 quick ratio of 0.16 and a current ratio of 1.04. The business’s 50-day simple moving average is GBX 1,110.15 and its 200-day simple moving average is GBX 1,139.24.

Insider Buying and Selling at Dunelm Group

In other Dunelm Group news, insider Daniel Taylor acquired 4,000 shares of Dunelm Group stock in a transaction on Monday, November 3rd. The shares were purchased at an average cost of GBX 1,163 per share, with a total value of £46,520. Also, insider Luisa Wright sold 2,257 shares of Dunelm Group 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 ninety 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. 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.