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

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 were traded 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.

A number of other analysts have also commented on the stock. Royal Bank Of Canada raised shares of Dunelm Group to an “outperform” rating and upped their price objective for the company from GBX 1,200 to GBX 1,300 in a research note on Monday, November 3rd. Shore Capital restated a “buy” rating on shares of Dunelm Group in a research report on Thursday. JPMorgan Chase & Co. raised their price objective 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. UBS Group reissued a “buy” rating and set a GBX 1,360 target price on shares of Dunelm Group in a research note on Friday, October 17th. Finally, Jefferies Financial Group increased their target price on Dunelm Group from GBX 1,755 to GBX 1,817 and gave the company a “hold” rating in a report on Tuesday, October 28th. Six investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of GBX 1,390.25.

Insider Transactions at Dunelm Group

In other Dunelm Group news, insider Daniel Taylor acquired 4,000 shares of the business’s stock in a transaction that occurred on Monday, November 3rd. The shares were purchased at an average price of GBX 1,163 per share, with a total value of £46,520. Also, insider Clodagh Moriarty sold 51,119 shares of Dunelm Group 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 transaction of £586,846.12. Over the last three months, insiders have bought 17,790 shares of company stock worth $20,056,160 and have sold 61,854 shares worth $70,913,541. 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 fifty day simple moving average of GBX 1,110.15 and a two-hundred day simple moving average of GBX 1,138.85. The company has a market capitalization of £1.91 billion, a P/E 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.

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.