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

Shares of Dunelm Group plc (LON:DNLM) fell 19.5% on Thursday . The company traded as low as GBX 941.50 and last traded at GBX 941.50. 3,357,217 shares changed hands during mid-day trading, an increase of 213% from the average session volume of 1,072,808 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, which supports longer‑term investor confidence despite near‑term headwinds. Digital Look: Broker Ratings
• Positive Sentiment: Technical indicator: Dunelm’s share price crossed above its 200‑day moving average, a bullish signal that can attract trend‑following and institutional buyers if sustained. Dunelm Group Share Price Crosses Above 200 Day Moving Average
• Negative Sentiment: Company update/earnings warning: Dunelm reported that Q2 sales growth has slowed and warned that full‑year profit is likely to land at the low end of expectations — a direct hit to near‑term earnings visibility and analyst estimates. Dunelm Q2 sales growth slows, warns full-year profit at low end of expectations
• Negative Sentiment: Market reaction: Coverage notes that Dunelm shares tumbled after weaker festive (seasonal) demand, indicating investor concern that demand softness may persist into the first half of the year. Dunelm shares tumble as festive demand takes a hit

Analyst Ratings Changes

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

Dunelm Group Trading Down 19.5%

The stock has a market cap of £1.90 billion, a PE ratio of 12.26, a price-to-earnings-growth 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 company’s 50-day moving average price is GBX 1,117.28 and its 200 day moving average price is GBX 1,142.28.

Insiders Place Their Bets

In other Dunelm Group news, insider Daniel Taylor bought 4,000 shares of Dunelm Group stock in a transaction on Monday, November 3rd. The shares were bought at an average price of GBX 1,163 per share, for a total transaction of £46,520. Also, insider Luisa Wright sold 2,257 shares of the company’s stock in a transaction on Monday, November 10th. The shares were sold at an average price of GBX 1,121, for a total value of £25,300.97. In the last three months, insiders purchased 17,790 shares of company stock worth $20,056,160 and sold 61,854 shares worth $70,913,541. 34.16% of the stock is owned by 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.