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

Dunelm Group plc (LON:DNLM)’s share price fell 19.5% on Thursday . The stock traded as low as GBX 941.50 and last traded at GBX 941.50. 3,357,217 shares were traded during mid-day trading, an increase of 213% from the average session 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)

Wall Street Analysts Forecast Growth

A number of analysts recently commented on the stock. Royal Bank Of Canada upgraded shares of Dunelm Group to an “outperform” rating and boosted their target price for the stock from GBX 1,200 to GBX 1,300 in a report on Monday, November 3rd. JPMorgan Chase & Co. upped their price target on Dunelm Group from GBX 1,140 to GBX 1,240 and gave the company a “neutral” rating in a report on Tuesday, October 28th. Jefferies Financial Group increased their price objective on Dunelm Group from GBX 1,755 to GBX 1,817 and gave the company a “hold” rating in a research report on Tuesday, October 28th. UBS Group restated a “buy” rating and issued a GBX 1,360 target price on shares of Dunelm Group in a report on Friday, October 17th. Finally, Shore Capital reaffirmed a “buy” rating on shares of Dunelm Group in a research report on Thursday. Six analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of GBX 1,397.13.

Dunelm Group Stock 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 business has a 50-day simple moving average of GBX 1,113.57 and a two-hundred day simple moving average of GBX 1,140.89. The company has a quick ratio of 0.16, a current ratio of 1.04 and a debt-to-equity ratio of 236.84.

Insiders Place Their Bets

In other Dunelm Group news, insider Karen Witts acquired 10,790 shares of Dunelm Group stock in a transaction dated Monday, December 1st. The stock was bought at an average cost of GBX 1,104 per share, with a total value of £119,121.60. Also, insider Daniel Taylor purchased 4,000 shares of the firm’s stock in a transaction on Monday, November 3rd. The stock was bought at an average price of GBX 1,163 per share, for a total transaction of £46,520. 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 owned by company 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.