Dunelm Group (LON:DNLM) Shares Down 14.3% - Should You Sell?

Key Points

• Dunelm Group shares fell 14.3% to GBX 760, with trading volume surging to nearly 30 million shares—about 1,274% above its average daily volume.
• Despite the sell-off, analysts remain broadly positive: the stock has a consensus “Moderate Buy” rating and an average price target of GBX 1,143.89, well above its current price.
• Dunelm reported quarterly EPS of GBX 77, with an 8.29% net margin and 105.88% return on equity; however, its balance sheet includes a high debt-to-equity ratio of 175.79.

Shares of Dunelm Group plc (LON:DNLM - Get Free Report) were down 14.3% on Tuesday . The company traded as low as GBX 760 and last traded at GBX 760. 29,913,732 shares traded hands during mid-day trading, an increase of 1,274% from the average daily volume of 2,176,781 shares. The stock had previously closed at GBX 886.50.

Analysts Set New Price Targets

Several equities research analysts recently issued reports on DNLM shares. Shore Capital Group reiterated a "buy" rating and set a GBX 1,000 price target on shares of Dunelm Group in a report on Tuesday. Deutsche Bank Aktiengesellschaft raised Dunelm Group to a "buy" rating and increased their price target for the company from GBX 850 to GBX 1,050 in a research report on Thursday, September 3rd. Finally, Berenberg Bank cut their price objective on shares of Dunelm Group from GBX 1,332 to GBX 1,200 and set a "buy" rating on the stock in a report on Thursday, August 27th. Seven research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of GBX 1,143.89.

Dunelm Group Stock Down 14.3%

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 firm has a market capitalization of £1.53 billion, a P/E ratio of 10.34, a P/E/G ratio of -10.32 and a beta of 0.97. The stock's 50-day simple moving average is GBX 858.72 and its 200-day simple moving average is GBX 835.01.

Dunelm Group (LON:DNLM - Get Free Report) last posted its earnings results on Tuesday, September 8th. The company reported GBX 77 EPS for the quarter. Dunelm Group had a net margin of 8.29% and a return on equity of 105.88%. As a group, research analysts predict that Dunelm Group plc will post 77.0957096 earnings per share for the current fiscal year.

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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