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

Key Points

• New 52-week low: Dunelm hit a fresh low of GBX 780 (last GBX 782) on heavy volume and is trading below its 50‑day (GBX 925.95) and 200‑day (GBX 1,049.24) moving averages.
• Analyst outlook: Despite recent target cuts, the consensus is a "Moderate Buy" (7 Buys, 1 Hold, 1 Sell) with an average target of GBX 1,216.67, implying significant upside from current levels.
• Fundamentals and insider signal: The company has a market cap of £1.59bn and a PE of 10.68 but weak liquidity (quick ratio 0.16, current ratio 0.83) and high leverage (debt/equity 175.79); insiders own 34.13% and an insider recently bought shares at GBX 963.

Dunelm Group plc (LON:DNLM - Get Free Report) hit a new 52-week low during trading on Friday . The company traded as low as GBX 780 and last traded at GBX 782, with a volume of 112901 shares traded. The stock had previously closed at GBX 795.

Wall Street Analysts Forecast Growth

DNLM has been the subject of several analyst reports. Jefferies Financial Group upgraded shares of Dunelm Group to a "buy" rating and set a GBX 1,075 target price for the company in a research note on Monday, February 9th. Berenberg Bank dropped their price target on shares of Dunelm Group from GBX 1,480 to GBX 1,425 and set a "buy" rating on the stock in a research report on Friday, January 16th. Deutsche Bank Aktiengesellschaft decreased their price objective on shares of Dunelm Group from GBX 1,360 to GBX 1,200 and set a "buy" rating for the company in a research report on Friday, January 16th. Panmure Gordon lowered their target price on shares of Dunelm Group from GBX 995 to GBX 830 and set a "sell" rating on the stock in a research note on Monday, January 19th. Finally, Shore Capital Group dropped their target price on Dunelm Group from GBX 1,300 to GBX 1,200 and set a "buy" rating on the stock in a research report on Tuesday, January 27th. Seven analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, Dunelm Group currently has an average rating of "Moderate Buy" and an average target price of GBX 1,216.67.

Dunelm Group Stock Down 1.2%

The firm's 50 day moving average is GBX 925.95 and its 200-day moving average is GBX 1,049.24. The firm has a market cap of £1.59 billion, a PE ratio of 10.68, a P/E/G ratio of -10.32 and a beta of 0.92. The company has a quick ratio of 0.16, a current ratio of 0.83 and a debt-to-equity ratio of 175.79.

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

Insiders Place Their Bets

In other Dunelm Group news, insider Luisa Wright acquired 2,442 shares of the firm's stock in a transaction on Friday, February 13th. The stock was bought at an average cost of GBX 963 per share, for a total transaction of £23,516.46. 34.13% of the stock is currently owned by company insiders.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.