Dunelm Group (LON:DNLM) Shares Down 19.5% After Analyst Downgrade

Dunelm Group plc (LON:DNLM)’s stock price traded down 19.5% on Friday after Berenberg Bank lowered their price target on the stock from GBX 1,480 to GBX 1,425. Berenberg Bank currently has a buy rating on the stock. Dunelm Group traded as low as GBX 941.50 and last traded at GBX 941.50. 3,357,217 shares traded 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.

Other equities research analysts have also recently issued research reports about the stock. Jefferies Financial Group lifted their price target on shares of Dunelm Group from GBX 1,755 to GBX 1,817 and gave the stock a “hold” rating in a report on Tuesday, October 28th. JPMorgan Chase & Co. upped their price target on Dunelm Group from GBX 1,140 to GBX 1,240 and gave the company a “neutral” rating in a research report on Tuesday, October 28th. UBS Group restated a “buy” rating and issued a GBX 1,360 price objective on shares of Dunelm Group in a research note on Friday, October 17th. Royal Bank Of Canada upgraded shares of Dunelm Group to an “outperform” rating and increased their target price for the stock from GBX 1,200 to GBX 1,300 in a research report on Monday, November 3rd. Finally, Shore Capital reissued a “buy” rating on shares of Dunelm Group in a research report on Thursday. Six analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of GBX 1,390.25.

Insiders Place Their Bets

In related news, insider Clodagh Moriarty sold 51,119 shares of the firm’s stock in a transaction that occurred on Monday, October 27th. The shares were sold at an average price of GBX 1,148, for a total value of £586,846.12. Also, insider Karen Witts acquired 10,790 shares of the business’s stock in a transaction dated Monday, December 1st. The stock was purchased at an average price of GBX 1,104 per share, with a total value of £119,121.60. Over the last three months, insiders purchased 17,790 shares of company stock worth $20,056,160 and sold 61,854 shares worth $70,913,541. Company insiders own 34.16% of the company’s stock.

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

Dunelm Group Trading Up 0.7%

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 has a market capitalization of £1.91 billion, a PE ratio of 12.34, a PEG ratio of -10.32 and a beta of 1.18. The stock has a 50-day moving average price of GBX 1,110.15 and a two-hundred day moving average price of GBX 1,138.85.

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.