Dunelm Group (LON:DNLM) Reaches New 12-Month Low - Should You Sell?

Key Points

• 52-week low: Dunelm shares fell to GBX 766.50 (last GBX 769.96) on Tuesday, trading well below the 50- and 200-day moving averages (GBX 868.54 and GBX 1,003.99).
• Analyst outlook: Seven analysts rate the stock "Buy" (consensus target GBX 1,199.44) even though several firms have recently lowered their price targets.
• Financial and insider signals: The group shows low liquidity (current ratio 0.83, quick ratio 0.16) and high leverage (debt/equity 175.79), but a P/E of 10.48, very high reported ROE and a recent insider purchase at GBX 963.

Dunelm Group plc (LON:DNLM - Get Free Report)'s stock price reached a new 52-week low during trading on Tuesday . The company traded as low as GBX 766.50 and last traded at GBX 769.96, with a volume of 287552 shares. The stock had previously closed at GBX 781.50.

Wall Street Analyst Weigh In

A number of equities analysts have commented on DNLM shares. Canaccord Genuity Group lowered their price objective on Dunelm Group from GBX 1,280 to GBX 1,240 and set a "buy" rating on the stock in a research note on Friday, April 17th. Jefferies Financial Group restated a "buy" rating and set a GBX 1,075 price objective on shares of Dunelm Group in a research note on Thursday, April 16th. Berenberg Bank lowered their price objective on Dunelm Group from GBX 1,425 to GBX 1,350 and set a "buy" rating on the stock in a research note on Friday, April 17th. Shore Capital Group restated a "buy" rating on shares of Dunelm Group in a research note on Thursday, April 16th. Finally, Deutsche Bank Aktiengesellschaft lowered their price objective on Dunelm Group from GBX 1,360 to GBX 1,200 and set a "buy" rating on the stock in a research note on Friday, January 16th. Seven equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of GBX 1,199.44.

Dunelm Group Price Performance

The firm has a market cap of £1.55 billion, a P/E ratio of 10.48, a price-to-earnings-growth ratio of -10.32 and a beta of 1.03. The company has a current ratio of 0.83, a quick ratio of 0.16 and a debt-to-equity ratio of 175.79. The business has a 50-day moving average of GBX 868.54 and a two-hundred day moving average of GBX 1,003.99.

Dunelm Group (LON:DNLM - Get Free Report) last posted its earnings results on Tuesday, February 10th. The company reported GBX 42 earnings per share for the quarter. Dunelm Group had a net margin of 8.29% and a return on equity of 105.88%. On average, sell-side analysts anticipate that Dunelm Group plc will post 77.0957096 earnings per share for the current fiscal year.

Insider Transactions at Dunelm Group

In related news, insider Luisa Wright bought 2,442 shares of the business's stock in a transaction that occurred on Friday, February 13th. The shares were acquired at an average cost of GBX 963 per share, with a total value of £23,516.46. 34.13% of the stock is currently 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.

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