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

Shares of Dunelm Group plc (LON:DNLM) traded down 19.5% during trading 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 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.

DNLM has been the subject of several other reports. JPMorgan Chase & Co. boosted their price target on shares of Dunelm Group from GBX 1,140 to GBX 1,240 and gave the stock a “neutral” rating in a research note on Tuesday, October 28th. Royal Bank Of Canada upgraded Dunelm Group to an “outperform” rating and increased their target price for the company from GBX 1,200 to GBX 1,300 in a report on Monday, November 3rd. UBS Group restated a “buy” rating and set a GBX 1,360 price target on shares of Dunelm Group in a research report on Friday, October 17th. Jefferies Financial Group boosted 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. Finally, Shore Capital reaffirmed 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. Based on data from MarketBeat, Dunelm Group has a consensus rating of “Moderate Buy” and a consensus price target of GBX 1,390.25.

Insider Activity at Dunelm Group

In other news, insider Daniel Taylor bought 4,000 shares of the company’s stock in a transaction on Monday, November 3rd. The shares were acquired at an average cost of GBX 1,163 per share, with a total value of £46,520. Also, insider Luisa Wright sold 2,257 shares of the company’s 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. In the last quarter, insiders have acquired 17,790 shares of company stock valued at $20,056,160 and have sold 61,854 shares valued at $70,913,541. Insiders own 34.16% of the company’s stock.

Dunelm Group News Roundup

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 Stock Performance

The stock has a market cap of £1.91 billion, a P/E ratio of 12.34, 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 business’s 50-day moving average price is GBX 1,110.15 and its 200-day moving average price is GBX 1,138.85.

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.