Dunelm Group (LON:DNLM) Stock Passes Below 200 Day Moving Average - Time to Sell?

Key Points

• Dunelm Group shares fell below their 200-day moving average during Wednesday trading, dipping as low as GBX 785.42 before last trading at GBX 816. The move comes after the stock had a 200-day average of GBX 872.46, raising concerns about near-term momentum.
• Analysts remain mostly bullish on DNLM despite the recent weakness. Seven analysts rate it a Buy, with a consensus "Moderate Buy" and an average price target of GBX 1,199.44.
• Insiders have been buying shares recently, including purchases by Alison Brittain and Ajay Kavan at prices below the recent trading level. Insider ownership stands at 34.19% of the company.

Dunelm Group plc (LON:DNLM - Get Free Report) shares passed below its two hundred day moving average during trading on Wednesday . The stock has a two hundred day moving average of GBX 872.46 and traded as low as GBX 785.42. Dunelm Group shares last traded at GBX 816, with a volume of 6,254,000 shares traded.

Wall Street Analysts Forecast Growth

DNLM has been the topic of several analyst reports. Shore Capital Group reiterated a "buy" rating on shares of Dunelm Group in a report on Thursday, April 16th. Jefferies Financial Group reissued a "buy" rating and set a GBX 1,075 price objective on shares of Dunelm Group in a research report on Thursday, April 16th. Canaccord Genuity Group reduced their price target on shares of Dunelm Group from GBX 1,280 to GBX 1,240 and set a "buy" rating for the company in a research report on Friday, April 17th. Finally, Berenberg Bank cut their price target on Dunelm Group from GBX 1,425 to GBX 1,350 and set a "buy" rating for the company in a research note on Friday, April 17th. Seven equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of GBX 1,199.44.

Dunelm Group Price Performance

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 stock has a market cap of £1.64 billion, a PE ratio of 11.10, a PEG ratio of -10.32 and a beta of 0.96. The business has a 50-day moving average price of GBX 780.40 and a 200 day moving average price of GBX 872.46.

Insider Activity at Dunelm Group

In other Dunelm Group news, insider Alison Brittain acquired 12,500 shares of the business's stock in a transaction that occurred on Thursday, May 7th. The stock was bought at an average cost of GBX 764 per share, with a total value of £95,500. Also, insider Ajay Kavan purchased 3,947 shares of the business's stock in a transaction dated Monday, May 11th. The stock was bought at an average cost of GBX 756 per share, with a total value of £29,839.32. 34.19% of the stock is currently owned by company 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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