Dunelm Group (LON:DNLM) Shares Down 19.5% – What’s Next?

Dunelm Group plc (LON:DNLM) traded down 19.5% on Thursday . The stock traded as low as GBX 941.50 and last traded at GBX 941.50. 3,357,217 shares traded hands 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 Stories Impacting Dunelm Group

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

• Positive Sentiment: Shore Capital reaffirmed a “buy” rating on Dunelm, providing some support from a retail broker and cushioning the sell‑off. Shore Capital Reaffirmation
• Neutral Sentiment: Berenberg trimmed its price target from GBX 1,480 to GBX 1,425 but kept a “buy” rating — a mild downgrade in expected upside that tempers investor enthusiasm without changing the positive recommendation. Berenberg Target Cut
• Negative Sentiment: Reporting and market reaction: coverage notes Dunelm shares “tumbled” after management flagged that festive demand weakened and Q2 sales growth slowed, with full‑year profit now expected at the low end of prior guidance — this operational update is the core reason for the downward pressure. Investors Chronicle: Festive Demand Hit
• Negative Sentiment: Market reaction piece reporting a steep intraday decline (about 19.5% in one report), reflecting investor selling after the trading statement and amplifying volatility. American Banking News: Trading Down
• Negative Sentiment: Earnings/forecast coverage: a detailed note warns Q2 sales growth slowed and reiterates the warning that full‑year profit will sit at the low end of expectations — this is the fundamental catalyst for the sell‑off. Investing.com: Q2 Sales Slow

Analyst Upgrades and Downgrades

A number of analysts recently commented on DNLM shares. JPMorgan Chase & Co. upped their price objective on Dunelm Group from GBX 1,140 to GBX 1,240 and gave the company a “neutral” rating in a research report on Tuesday, October 28th. Shore Capital restated a “buy” rating on shares of Dunelm Group in a research note on Thursday. UBS Group reiterated a “buy” rating and issued a GBX 1,360 price objective on shares of Dunelm Group in a research note on Friday, October 17th. Jefferies Financial Group raised their price objective on shares of Dunelm Group from GBX 1,755 to GBX 1,817 and gave the stock a “hold” rating in a report on Tuesday, October 28th. Finally, Berenberg Bank reduced their target price on shares of Dunelm Group from GBX 1,480 to GBX 1,425 and set a “buy” rating for the company in a report on Friday. Six research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of GBX 1,390.25.

Dunelm Group Trading Up 0.7%

The stock has a 50 day moving average of GBX 1,110.15 and a 200-day moving average of GBX 1,139.24. The company has a market capitalization of £1.91 billion, a P/E ratio of 12.34, 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.

Insider Activity

In other news, insider Daniel Taylor acquired 4,000 shares of Dunelm Group stock in a transaction dated Monday, November 3rd. The stock was purchased at an average cost of GBX 1,163 per share, with a total value of £46,520. Also, insider Clodagh Moriarty sold 51,119 shares of Dunelm Group stock in a transaction on Monday, October 27th. The shares were sold at an average price of GBX 1,148, for a total transaction of £586,846.12. In the last ninety days, insiders bought 17,790 shares of company stock valued at $20,056,160 and sold 61,854 shares valued at $70,913,541. Corporate 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.