Dunelm Group (LON:DNLM) Stock Breaks Above Two Hundred Day Moving Average - Time to Sell?

Key Points

• Dunelm Group shares broke above their 200-day moving average, reaching GBX 865.50 and closing at GBX 859, compared with the 200-day average of GBX 814.15.
• Analyst sentiment is broadly positive: seven analysts rate the stock a Buy and one a Sell, producing a “Moderate Buy” consensus and an average price target of GBX 1,074.38.
• The company reported quarterly EPS of GBX 77, with an 8.52% net margin and 99.65% return on equity; insiders own 34.22% of the stock, though one insider recently sold 47,817 shares.

Shares of Dunelm Group plc (LON:DNLM - Get Free Report) passed above its two hundred day moving average during trading on Friday. The stock has a two hundred day moving average of GBX 814.15 and traded as high as GBX 865.50. Dunelm Group shares last traded at GBX 859, with a volume of 23,234,512 shares trading hands.

Wall Street Analysts Forecast Growth

A number of analysts have weighed in on the company. Canaccord Genuity Group reiterated a "buy" rating and issued a GBX 1,185 price target on shares of Dunelm Group in a research report on Friday, October 16th. JPMorgan Chase & Co. cut their price objective on Dunelm Group from GBX 1,225 to GBX 1,050 and set an "overweight" rating for the company in a report on Wednesday, September 9th. Shore Capital Group restated a "buy" rating and issued a GBX 1,000 target price on shares of Dunelm Group in a research note on Friday, September 18th. Deutsche Bank Aktiengesellschaft reduced their target price on shares of Dunelm Group from GBX 1,050 to GBX 1,000 and set a "buy" rating on the stock in a research note on Wednesday, September 9th. Finally, Berenberg Bank reaffirmed a "buy" rating and issued a GBX 1,200 target price on shares of Dunelm Group in a report on Wednesday, September 9th. Seven research analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company. Based on data from MarketBeat, Dunelm Group has an average rating of "Moderate Buy" and an average target price of GBX 1,074.38.

Dunelm Group Stock Performance

The stock has a 50 day moving average price of GBX 823.25 and a two-hundred day moving average price of GBX 814.15. The company has a debt-to-equity ratio of 258.52, a current ratio of 1.02 and a quick ratio of 0.16. The company has a market capitalization of £1.73 billion, a price-to-earnings ratio of 11.18, a price-to-earnings-growth ratio of -10.32 and a beta of 1.03.

Dunelm Group (LON:DNLM - Get Free Report) last issued its quarterly earnings results on Tuesday, September 8th. The company reported GBX 77 earnings per share (EPS) for the quarter. Dunelm Group had a net margin of 8.52% and a return on equity of 99.65%. On average, analysts predict that Dunelm Group plc will post 77.10 EPS for the current fiscal year.

Insider Buying and Selling

In related news, insider Ian Bull bought 2,500 shares of the company's stock in a transaction on Wednesday, September 9th. The stock was bought at an average cost of GBX 748 per share, with a total value of £18,700. Also, insider Clodagh Moriarty sold 47,817 shares of the company's stock in a transaction that occurred on Monday, September 28th. The stock was sold at an average price of GBX 800, for a total transaction of £382,536. In the last 90 days, insiders purchased 18,302 shares of company stock valued at $13,633,906. Insiders own 34.22% 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. 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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