Dunelm Group (LON:DNLM) Trading Down 17.8% – Here’s What Happened

Dunelm Group plc (LON:DNLM) dropped 17.8% during trading on Thursday . The company traded as low as GBX 956 and last traded at GBX 961.80. Approximately 3,474,159 shares changed hands during mid-day trading, an increase of 220% from the average daily volume of 1,084,503 shares. The stock had previously closed at GBX 1,170.

Dunelm Group News Summary

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

Analysts Set New Price Targets

Several brokerages have issued reports on DNLM. Berenberg Bank reduced their price target on shares of Dunelm Group from GBX 1,480 to GBX 1,425 and set a “buy” rating on the stock in a report on Friday. Shore Capital restated a “buy” rating on shares of Dunelm Group in a research report on Thursday. JPMorgan Chase & Co. increased their target price 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 boosted their price target on 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, UBS Group reaffirmed a “buy” rating and set a GBX 1,360 price objective on shares of Dunelm Group in a research note on Friday, October 17th. Six investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of GBX 1,390.25.

Dunelm Group Trading Up 0.7%

The business has a 50 day simple moving average of GBX 1,110.15 and a two-hundred day simple moving average of GBX 1,139.24. 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 company has a market cap of £1.91 billion, a PE ratio of 12.34, a price-to-earnings-growth 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 firm’s stock in a transaction dated Monday, October 27th. The stock was sold at an average price of GBX 1,148, for a total value of £586,846.12. Also, insider Daniel Taylor acquired 4,000 shares of the company’s stock in a transaction dated Monday, November 3rd. The shares were bought at an average cost of GBX 1,163 per share, with a total value of £46,520. In the last quarter, insiders bought 17,790 shares of company stock valued at $20,056,160 and 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.