Dunelm Group (LON:DNLM) Stock Passes Below Two Hundred Day Moving Average - Here's Why

Key Points

• Passed below its 200-day moving average: Dunelm shares fell under the 200-day MA of GBX 1,022.41, trading as low as GBX 838.50 and last at GBX 848 on volume of 246,924, a bearish technical signal.
• Analyst backdrop is mixed but tilted positive — seven Buys, one Hold and one Sell — giving a consensus rating of "Moderate Buy" and a consensus price target of GBX 1,216.67, even as several brokers recently cut targets.
• Key fundamentals and insider activity: market cap £1.71bn, P/E 11.54 and a very high debt-to-equity of 175.79; insider Luisa Wright bought 2,442 shares at GBX 963 and insiders own 34.13% of the stock.

Dunelm Group plc (LON:DNLM - Get Free Report) passed below its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of GBX 1,022.41 and traded as low as GBX 838.50. Dunelm Group shares last traded at GBX 848, with a volume of 246,924 shares traded.

Wall Street Analyst Weigh In

Several analysts have issued reports on the stock. Panmure Gordon dropped their price target on shares of Dunelm Group from GBX 995 to GBX 830 and set a "sell" rating on the stock in a research report on Monday, January 19th. Deutsche Bank Aktiengesellschaft dropped their price target on shares of Dunelm Group from GBX 1,360 to GBX 1,200 and set a "buy" rating on the stock in a research report on Friday, January 16th. Jefferies Financial Group raised shares of Dunelm Group to a "buy" rating and set a GBX 1,075 price target on the stock in a research report on Monday, February 9th. Shore Capital Group dropped their price target on shares of 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. Finally, 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. Seven investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of GBX 1,216.67.

Dunelm Group Price Performance

The company has a market capitalization of £1.71 billion, a P/E ratio of 11.54, a price-to-earnings-growth ratio of -10.32 and a beta of 1.03. The company's 50-day moving average price is GBX 891.24 and its two-hundred day moving average price is GBX 1,022.41. The company has a debt-to-equity ratio of 175.79, a current ratio of 0.83 and a quick ratio of 0.16.

Dunelm Group (LON:DNLM - Get Free Report) last issued its quarterly earnings data 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%. As a group, sell-side analysts expect that Dunelm Group plc will post 77.0957096 EPS for the current year.

Insider Buying and Selling at Dunelm Group

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