Dunelm Group (LON:DNLM) Trading Down 19.5% – Should You Sell?

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 changed hands during 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, 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

A number of equities analysts have weighed in on DNLM shares. UBS Group reissued a “buy” rating and issued a GBX 1,360 target price on shares of Dunelm Group in a research report on Friday, October 17th. Shore Capital reiterated a “buy” rating on shares of Dunelm Group in a research note on Thursday. Jefferies Financial Group increased 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. Royal Bank Of Canada raised shares of Dunelm Group to an “outperform” rating and lifted their target price for the stock from GBX 1,200 to GBX 1,300 in a research report on Monday, November 3rd. Finally, JPMorgan Chase & Co. boosted their target price 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. Six investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of GBX 1,390.25.

Dunelm Group Stock Up 0.7%

The company’s 50 day moving average price is GBX 1,110.15 and its two-hundred day moving average price is GBX 1,138.85. 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 firm has a market cap of £1.91 billion, a PE ratio of 12.34, a PEG ratio of -10.32 and a beta of 1.18.

Insider Buying and Selling

In related news, insider Karen Witts purchased 10,790 shares of Dunelm Group stock in a transaction on Monday, December 1st. The stock was acquired at an average price of GBX 1,104 per share, for a total transaction of £119,121.60. Also, 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 value of £25,300.97. Over the last three months, insiders have purchased 17,790 shares of company stock valued at $20,056,160 and have sold 61,854 shares valued at $70,913,541. Corporate insiders own 34.16% of the company’s stock.

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.