Dunelm Group (LON:DNLM) Trading Down 19.5% – Here’s Why

Shares of Dunelm Group plc (LON:DNLM) 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 traded hands 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.

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, 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 equities analysts recently weighed in on the stock. Royal Bank Of Canada raised shares of Dunelm Group to an “outperform” rating and raised their target price for the company from GBX 1,200 to GBX 1,300 in a research note on Monday, November 3rd. UBS Group reissued a “buy” rating and set a GBX 1,360 price objective on shares of Dunelm Group in a report on Friday, October 17th. Jefferies Financial Group raised 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. JPMorgan Chase & Co. boosted their target price on Dunelm Group from GBX 1,140 to GBX 1,240 and gave the stock a “neutral” rating in a research report on Tuesday, October 28th. Finally, Shore Capital reissued a “buy” rating on shares of Dunelm Group in a research note on Thursday. Six equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, Dunelm Group presently has a consensus rating of “Moderate Buy” and a consensus price target of GBX 1,397.13.

Dunelm Group Trading Down 19.5%

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

Insider Buying and Selling

In other news, insider Daniel Taylor acquired 4,000 shares of the company’s stock in a transaction on Monday, November 3rd. The stock was bought at an average cost of GBX 1,163 per share, with a total value of £46,520. Also, insider Karen Witts acquired 10,790 shares of the business’s stock in a transaction on Monday, December 1st. The shares were purchased at an average price of GBX 1,104 per share, for a total transaction of £119,121.60. In the last quarter, insiders bought 17,790 shares of company stock worth $20,056,160 and sold 61,854 shares worth $70,913,541. 34.16% of the stock is currently owned by 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.