Dunelm Group (LON:DNLM) Stock Price Down 18% – Should You Sell?

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

Trending Headlines about Dunelm Group

Here are the key news stories impacting Dunelm Group this week:

• Positive Sentiment: Technical upside: the share price recently crossed back above its 200‑day moving average, a bullish signal that can attract momentum buyers and suggest the longer‑term downtrend may be pausing. Dunelm Group (LON:DNLM) Share Price Crosses Above 200 Day Moving Average
• Negative Sentiment: Weaker sales and cautious guidance: Dunelm reported slowing Q2 sales growth and warned that full‑year profit is likely to be at the low end of expectations — a direct hit to earnings visibility that explains much of the selling pressure. Watch upcoming updates for details on margins, markdowns and inventory levels. Dunelm Q2 sales growth slows, warns full-year profit at low end of expectations
• Negative Sentiment: Festive demand disappointment: reporting indicates festive‑season demand was weaker than expected, likely increasing markdown pressure and reducing margin contribution from the quarter — a near‑term operational risk for results and stock performance. Dunelm shares tumble as festive demand takes a hit

Analyst Upgrades and Downgrades

Several brokerages recently commented on DNLM. Royal Bank Of Canada upgraded Dunelm Group to an “outperform” rating and upped their target price for the company from GBX 1,200 to GBX 1,300 in a report on Monday, November 3rd. UBS Group restated a “buy” rating and issued a GBX 1,360 price target on shares of Dunelm Group in a research report on Friday, October 17th. Jefferies Financial Group upped 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 note on Tuesday, October 28th. JPMorgan Chase & Co. lifted 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 assumed coverage on shares of Dunelm Group in a research report on Tuesday, November 11th. They set a “buy” rating and a GBX 1,300 price target on the stock. Six research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of GBX 1,397.13.

Dunelm Group Stock Performance

The company has a quick ratio of 0.16, a current ratio of 1.04 and a debt-to-equity ratio of 236.84. The company has a fifty day moving average price of GBX 1,117.28 and a 200 day moving average price of GBX 1,142.28. The stock has a market cap of £1.90 billion, a PE ratio of 12.26, a P/E/G ratio of -10.32 and a beta of 1.18.

Insider Buying and Selling

In other news, insider Karen Witts purchased 10,790 shares of the company’s stock in a transaction on Monday, December 1st. The stock was acquired at an average price of GBX 1,104 per share, with a total value of £119,121.60. Also, insider Luisa Wright sold 2,257 shares of the business’s stock in a transaction dated Monday, November 10th. The shares were sold at an average price of GBX 1,121, for a total transaction of £25,300.97. Over the last ninety 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 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.