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

Dunelm Group plc (LON:DNLM)’s stock price traded down 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 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)

Analyst Ratings Changes

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

Dunelm Group Stock Down 19.5%

The company has a quick ratio of 0.16, a current ratio of 1.04 and a debt-to-equity ratio of 236.84. The company has a market capitalization of £1.90 billion, a price-to-earnings ratio of 12.26, a P/E/G ratio of -10.32 and a beta of 1.18. The stock’s fifty day moving average price is GBX 1,113.57 and its 200-day moving average price is GBX 1,140.89.

Insider Buying and Selling at Dunelm Group

In other Dunelm Group news, 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 value of £586,846.12. Also, insider Daniel Taylor purchased 4,000 shares of the business’s stock in a transaction on Monday, November 3rd. The shares were acquired at an average cost of GBX 1,163 per share, for a total transaction of £46,520. In the last three months, insiders acquired 17,790 shares of company stock worth $20,056,160 and sold 61,854 shares worth $70,913,541. Corporate 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.