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

Dunelm Group plc (LON:DNLM)’s share price traded down 19.5% during 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 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

Analyst Upgrades and Downgrades

Several analysts have issued reports on the company. UBS Group reissued a “buy” rating and issued a GBX 1,360 price target on shares of Dunelm Group in a research note on Friday, October 17th. JPMorgan Chase & Co. boosted their target price 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. Shore Capital reaffirmed a “buy” rating on shares of Dunelm Group in a research report on Thursday. Royal Bank Of Canada raised shares of Dunelm Group to an “outperform” rating and boosted their price objective for the company from GBX 1,200 to GBX 1,300 in a report on Monday, November 3rd. Finally, Jefferies Financial Group increased 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 research note on Tuesday, October 28th. Six research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of GBX 1,397.13.

Dunelm Group Trading Down 19.5%

The company has a market capitalization of £1.90 billion, a P/E ratio of 12.26, a PEG 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 has a fifty day moving average of GBX 1,117.28 and a 200-day moving average of GBX 1,142.28.

Insider Transactions at Dunelm Group

In other Dunelm Group news, 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 value of £25,300.97. Also, insider Daniel Taylor acquired 4,000 shares of the stock in a transaction dated Monday, November 3rd. The shares were bought at an average price of GBX 1,163 per share, for a total transaction of £46,520. In the last three months, insiders have bought 17,790 shares of company stock valued at $20,056,160 and have sold 61,854 shares valued at $70,913,541. 34.16% of the stock is currently owned by company 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.