Dunelm Group (LON:DNLM) Shares Down 19.5% – Here’s Why

Shares of Dunelm Group plc (LON:DNLM) dropped 19.5% on Thursday . The company traded as low as GBX 941.50 and last traded at GBX 941.50. Approximately 3,357,217 shares were traded during trading, an increase of 213% from the average daily volume of 1,072,808 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, which provides broker support that can help limit downside or attract buyers. Shore Capital reaffirms buy (Digital Look)
• Positive Sentiment: Technical note — Dunelm’s share price recently crossed above its 200-day moving average, a bullish technical signal that may attract momentum traders. Share price crosses above 200-day MA (American Banking News)
• Negative Sentiment: Investors Chronicle reports Dunelm shares tumbled after festive demand was weaker than expected — this retail demand miss is weighing on near-term revenue visibility. Dunelm shares tumble as festive demand takes a hit (Investors Chronicle)
• Negative Sentiment: Company update / earnings coverage indicates Q2 sales growth has slowed and management warned full-year profit could be at the low end of expectations — a clear fundamental catalyst behind today’s sell-off. Q2 sales growth slows; profit warning (Investing.com)

Wall Street Analyst Weigh In

A number of research firms have recently commented on DNLM. Royal Bank Of Canada raised Dunelm Group to an “outperform” rating and increased their target price for the stock from GBX 1,200 to GBX 1,300 in a research note on Monday, November 3rd. Jefferies Financial Group increased 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 report on Tuesday, October 28th. UBS Group restated a “buy” rating and set a GBX 1,360 price objective on shares of Dunelm Group in a research note on Friday, October 17th. JPMorgan Chase & Co. upped their target price on shares of Dunelm Group from GBX 1,140 to GBX 1,240 and gave the stock a “neutral” rating in a research note on Tuesday, October 28th. Finally, Shore Capital reiterated a “buy” rating on shares of Dunelm Group in a report on Thursday. Six investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of GBX 1,397.13.

Dunelm Group Price Performance

The stock has a market capitalization of £1.90 billion, a PE ratio of 12.26, a PEG ratio of -10.32 and a beta of 1.18. The firm’s fifty day moving average price is GBX 1,113.57 and its two-hundred day moving average price is GBX 1,140.89. 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 Transactions at Dunelm Group

In other news, insider Luisa Wright sold 2,257 shares of the firm’s stock in a transaction on Monday, November 10th. The stock was 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 Dunelm Group stock in a transaction that occurred on Monday, November 3rd. The shares were purchased at an average price of GBX 1,163 per share, with a total value of £46,520. Over the last 90 days, insiders bought 17,790 shares of company stock valued at $20,056,160 and 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.