Dunelm Group (LON:DNLM) Shares Down 17.8% – Here’s Why

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

Key Headlines Impacting Dunelm Group

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

Wall Street Analysts Forecast Growth

A number of equities research analysts recently commented on DNLM shares. Royal Bank Of Canada upgraded Dunelm Group to an “outperform” rating and upped their price objective for the company from GBX 1,200 to GBX 1,300 in a report on Monday, November 3rd. Jefferies Financial Group boosted their target price on Dunelm Group from GBX 1,755 to GBX 1,817 and gave the stock a “hold” rating in a research report on Tuesday, October 28th. UBS Group reiterated a “buy” rating and issued a GBX 1,360 price target on shares of Dunelm Group in a research report on Friday, October 17th. Berenberg Bank reduced their price objective on shares of Dunelm Group from GBX 1,480 to GBX 1,425 and set a “buy” rating on the stock in a research note on Friday. Finally, Shore Capital restated a “buy” rating on shares of Dunelm Group in a report on Thursday. Six investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of GBX 1,390.25.

Dunelm Group Stock Performance

The company has a market cap of £1.91 billion, a price-to-earnings ratio of 12.34, a price-to-earnings-growth ratio of -10.32 and a beta of 1.18. 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 stock has a 50-day moving average price of GBX 1,110.15 and a 200 day moving average price of GBX 1,139.24.

Insiders Place Their Bets

In related news, insider Karen Witts purchased 10,790 shares of Dunelm Group stock in a transaction dated Monday, December 1st. The stock was bought at an average price of GBX 1,104 per share, for a total transaction of £119,121.60. Also, insider Daniel Taylor acquired 4,000 shares of the 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 acquired 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 owned by corporate insiders.

Dunelm Group Company Profile

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.