Dunelm Group (LON:DNLM) Stock Price Down 19.5% – Here’s What Happened

Shares of Dunelm Group plc (LON:DNLM) were down 19.5% on Thursday . The company traded as low as GBX 941.50 and last traded at GBX 941.50. Approximately 3,357,217 shares traded hands during mid-day trading, an increase of 213% from the average daily 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 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)

Analysts Set New Price Targets

Several research firms have recently commented on DNLM. Shore Capital reissued a “buy” rating on shares of Dunelm Group in a report on Thursday. Royal Bank Of Canada raised shares of Dunelm Group to an “outperform” rating and upped their price target for the stock from GBX 1,200 to GBX 1,300 in a research report on Monday, November 3rd. JPMorgan Chase & Co. lifted their price objective on shares of 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. UBS Group restated a “buy” rating and set a GBX 1,360 price objective on shares of Dunelm Group in a research note on Friday, October 17th. Finally, Jefferies Financial Group raised their target price 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. Six equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of GBX 1,397.13.

Dunelm Group Trading Down 19.5%

The company has a market cap of £1.90 billion, a price-to-earnings ratio of 12.26, a PEG 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’s 50 day moving average price is GBX 1,113.57 and its 200-day moving average price is GBX 1,140.89.

Insider Activity 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 stock was sold at an average price of GBX 1,121, for a total transaction of £25,300.97. Also, insider Daniel Taylor purchased 4,000 shares of the company’s stock in a transaction that occurred on Monday, November 3rd. The shares were purchased at an average cost of GBX 1,163 per share, with a total value of £46,520. Over the last three months, insiders have bought 17,790 shares of company stock valued at $20,056,160 and have sold 61,854 shares valued at $70,913,541. Insiders own 34.16% of the company’s stock.

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.