Dunelm Group (LON:DNLM) Stock Price Down 19.5% – Time to Sell?

Shares of Dunelm Group plc (LON:DNLM) fell 19.5% during trading on Thursday . The company traded as low as GBX 941.50 and last traded at GBX 941.50. 3,370,358 shares traded hands during trading, an increase of 214% from the average session volume of 1,074,123 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

Analysts Set New Price Targets

DNLM has been the topic of a number of recent analyst reports. Royal Bank Of Canada raised shares of Dunelm Group to an “outperform” rating and increased their price objective for the stock from GBX 1,200 to GBX 1,300 in a research report on Monday, November 3rd. JPMorgan Chase & Co. increased their price target 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. UBS Group reissued a “buy” rating and set a GBX 1,360 price target on shares of Dunelm Group in a research note on Friday, October 17th. Jefferies Financial Group boosted their price objective on Dunelm Group from GBX 1,755 to GBX 1,817 and gave the company a “hold” rating in a report on Tuesday, October 28th. Finally, Shore Capital reiterated a “buy” rating on shares of Dunelm Group in a research note on Thursday. Six research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of GBX 1,397.13.

Dunelm Group Stock Down 19.5%

The firm has a market cap of £1.90 billion, a P/E ratio of 12.26, a P/E/G ratio of -10.32 and a beta of 1.18. The company has a current ratio of 1.04, a quick ratio of 0.16 and a debt-to-equity ratio of 236.84. The business has a 50-day moving average price of GBX 1,117.28 and a 200-day moving average price of GBX 1,142.28.

Insider Buying and Selling at Dunelm Group

In other 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 transaction of £25,300.97. Also, insider Karen Witts acquired 10,790 shares of Dunelm Group stock in a transaction that occurred on Monday, December 1st. The stock was acquired at an average cost of GBX 1,104 per share, with a total value of £119,121.60. Over the last quarter, insiders acquired 17,790 shares of company stock worth $20,056,160 and sold 61,854 shares worth $70,913,541. Company insiders own 34.16% of the company’s stock.

Dunelm Group Company Profile

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.