Dunelm Group (LON:DNLM) Shares Down 19.5% – Time to Sell?

Dunelm Group plc (LON:DNLM)’s share price traded down 19.5% during mid-day trading on Friday . 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.

Key Dunelm Group News

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 Upgrades and Downgrades

DNLM has been the subject of a number of analyst reports. UBS Group reiterated a “buy” rating and set a GBX 1,360 target price on shares of Dunelm Group in a report on Friday, October 17th. Shore Capital reiterated a “buy” rating on shares of Dunelm Group in a report on Thursday. JPMorgan Chase & Co. lifted their price objective 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. Royal Bank Of Canada upgraded Dunelm Group to an “outperform” rating and upped their target price for the company from GBX 1,200 to GBX 1,300 in a report on Monday, November 3rd. Finally, Jefferies Financial Group raised their price target on Dunelm Group from GBX 1,755 to GBX 1,817 and gave the stock 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 assigned a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of GBX 1,397.13.

Dunelm Group Stock Performance

The company has a 50 day moving average of GBX 1,113.57 and a two-hundred day moving average of GBX 1,140.89. The company has a debt-to-equity ratio of 236.84, a current ratio of 1.04 and a quick ratio of 0.16. The company has a market capitalization of £1.92 billion, a PE ratio of 12.39, a PEG ratio of -10.32 and a beta of 1.18.

Insider Buying and Selling at Dunelm Group

In related news, insider Luisa Wright sold 2,257 shares of Dunelm Group stock in a transaction dated Monday, November 10th. The shares were sold at an average price of GBX 1,121, for a total transaction of £25,300.97. Also, insider Daniel Taylor acquired 4,000 shares of the business’s stock in a transaction on Monday, November 3rd. The stock was acquired at an average price of GBX 1,163 per share, for a total transaction of £46,520. Over the last 90 days, insiders bought 17,790 shares of company stock valued at $20,056,160 and sold 61,854 shares valued at $70,913,541. 34.16% of the stock is currently 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.