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

Dunelm Group plc (LON:DNLM)’s share price fell 19.5% during mid-day 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 Dunelm Group News

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)

Analyst Upgrades and Downgrades

A number of research firms have recently commented on DNLM. Royal Bank Of Canada raised Dunelm Group to an “outperform” rating and raised their price target for the stock from GBX 1,200 to GBX 1,300 in a research report on Monday, November 3rd. UBS Group reiterated a “buy” rating and set a GBX 1,360 target price on shares of Dunelm Group in a research note on Friday, October 17th. Shore Capital restated a “buy” rating on shares of Dunelm Group in a report on Thursday. Jefferies Financial Group raised their price objective on 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. raised their price objective on Dunelm Group from GBX 1,140 to GBX 1,240 and gave the company a “neutral” 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 company’s stock. Based on data from MarketBeat.com, Dunelm Group has an average rating of “Moderate Buy” and a consensus target price of GBX 1,397.13.

Dunelm Group Stock Down 19.5%

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 stock’s 50-day moving average price is GBX 1,113.57 and its two-hundred day moving average price is GBX 1,140.89. The stock has a market capitalization 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.

Insiders Place Their Bets

In other Dunelm Group news, insider Clodagh Moriarty sold 51,119 shares of the business’s stock in a transaction that occurred on Monday, October 27th. The shares were sold at an average price of GBX 1,148, for a total value of £586,846.12. Also, insider Luisa Wright sold 2,257 shares of the business’s stock in a transaction that occurred on Monday, November 10th. The stock was sold at an average price of GBX 1,121, for a total value of £25,300.97. In the last 90 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.