Dunelm Group (LON:DNLM) Shares Down 10.8% - Here's Why

Key Points

• Dunelm Group's shares dropped 10.8% to GBX 1,106.78 ($14.99), significantly below its previous close of GBX 1,241 ($16.81), with trading volume increasing to 4 million shares.
• Analysts are generally optimistic, with multiple firms upgrading their price targets; the average target price is GBX 1,349.17 and a consensus rating of "Moderate Buy".
• Despite the recent share decline, Dunelm reported a return on equity of 96.64% and a net margin of 8.86%, indicating strong operational performance.

Dunelm Group plc (LON:DNLM - Get Free Report) shares fell 10.8% during mid-day trading on Tuesday . The company traded as low as GBX 1,104 ($14.98) and last traded at GBX 1,106.78 ($15.01). 4,011,657 shares changed hands during mid-day trading, an increase of 498% from the average session volume of 671,021 shares. The stock had previously closed at GBX 1,241 ($16.83).

Analysts Set New Price Targets

A number of brokerages recently issued reports on DNLM. Deutsche Bank Aktiengesellschaft increased their target price on shares of Dunelm Group from GBX 1,320 to GBX 1,360 and gave the company a "buy" rating in a research report on Tuesday, August 26th. Shore Capital reaffirmed a "no recommendation" rating on shares of Dunelm Group in a research note on Tuesday, September 9th. Jefferies Financial Group raised their target price on Dunelm Group from GBX 1,095 to GBX 1,115 and gave the company a "hold" rating in a research note on Thursday. Berenberg Bank reaffirmed a "buy" rating and set a GBX 1,480 target price on shares of Dunelm Group in a research note on Tuesday, September 9th. Finally, Canaccord Genuity Group reaffirmed a "buy" rating and set a GBX 1,320 target price on shares of Dunelm Group in a research note on Wednesday. Five analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of GBX 1,315.71.

Dunelm Group Stock Performance

The firm has a 50 day moving average of GBX 1,184.31 and a 200-day moving average of GBX 1,105.99. The stock has a market capitalization of £2.14 billion, a PE ratio of 1,422.76, a P/E/G ratio of -10.32 and a beta of 1.18. The company has a debt-to-equity ratio of 236.84, a quick ratio of 0.16 and a current ratio of 1.04.

Dunelm Group (LON:DNLM - Get Free Report) last announced its quarterly earnings data on Tuesday, September 9th. The company reported GBX 77.20 earnings per share (EPS) for the quarter. Dunelm Group had a return on equity of 96.64% and a net margin of 8.86%. Research analysts forecast that Dunelm Group plc will post 77.0957096 earnings per share for the current year.

Insider Transactions at Dunelm Group

In other news, insider Karen Witts sold 24,277 shares of the firm's stock in a transaction dated Monday, June 16th. The stock was sold at an average price of GBX 1,178, for a total transaction of £285,983.06. Corporate insiders own 39.14% of the company's stock.

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.