Dunelm Group (LON:DNLM) Stock Price Down 19.5% – Should You Sell?

15 Jan 2026, 19:42 by Renee Jackson · The Cerbat Gem

Dunelm Group plc (LON:DNLM – Get Free Report) shares dropped 19.5% during trading on Thursday . The stock traded as low as GBX 941.50 and last traded at GBX 941.50. Approximately 3,357,217 shares traded hands during mid-day trading, an increase of 213% from the average daily volume of 1,072,808 shares. The stock had previously closed at GBX 1,170.

Key Stories Impacting Dunelm Group

Here are the key news stories impacting Dunelm Group this week:

Positive Sentiment: Shore Capital reaffirmed a “buy” rating on Dunelm, which provides broker support that can help limit downside or attract buyers. Shore Capital reaffirms buy (Digital Look)
Positive Sentiment: Technical note — Dunelm’s share price recently crossed above its 200-day moving average, a bullish technical signal that may attract momentum traders. Share price crosses above 200-day MA (American Banking News)
Negative Sentiment: Investors Chronicle reports Dunelm shares tumbled after festive demand was weaker than expected — this retail demand miss is weighing on near-term revenue visibility. Dunelm shares tumble as festive demand takes a hit (Investors Chronicle)
Negative Sentiment: Company update / earnings coverage indicates Q2 sales growth has slowed and management warned full-year profit could be at the low end of expectations — a clear fundamental catalyst behind today’s sell-off. Q2 sales growth slows; profit warning (Investing.com)

Analysts Set New Price Targets

A number of research firms have recently weighed in on DNLM. JPMorgan Chase & Co. increased their price objective on Dunelm Group from GBX 1,140 to GBX 1,240 and gave the company a “neutral” rating in a research note on Tuesday, October 28th. Royal Bank Of Canada raised shares of Dunelm Group to an “outperform” rating and increased their price target for the company from GBX 1,200 to GBX 1,300 in a research report on Monday, November 3rd. Shore Capital reissued a “buy” rating on shares of Dunelm Group in a report on Thursday. Jefferies Financial Group upped their price objective on shares of Dunelm Group from GBX 1,755 to GBX 1,817 and gave the company a “hold” rating in a research note on Tuesday, October 28th. Finally, UBS Group reiterated a “buy” rating and set a GBX 1,360 target price on shares of Dunelm Group in a report on Friday, October 17th. Six research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat, Dunelm Group has a consensus rating of “Moderate Buy” and an average price target of GBX 1,397.13.

Check Out Our Latest Stock Report on Dunelm Group

Dunelm Group Trading Down 19.5%

The company has a debt-to-equity ratio of 236.84, a current ratio of 1.04 and a quick ratio of 0.16. The stock’s 50 day moving average is GBX 1,113.57 and its 200-day moving average is GBX 1,140.89. The company has a market capitalization of £1.90 billion, a P/E ratio of 12.26, a P/E/G ratio of -10.32 and a beta of 1.18.

Insider Transactions at Dunelm Group

In other Dunelm Group news, insider Karen Witts bought 10,790 shares of the company’s stock in a transaction dated Monday, December 1st. The shares were purchased at an average price of GBX 1,104 per share, for a total transaction of £119,121.60. Also, insider Luisa Wright sold 2,257 shares of the stock in a transaction dated Monday, November 10th. The stock was sold at an average price of GBX 1,121, for a total transaction of £25,300.97. Over the last ninety days, insiders have purchased 17,790 shares of company stock valued at $20,056,160 and have sold 61,854 shares valued at $70,913,541. 34.16% of the stock is owned by corporate insiders.

About Dunelm Group

(Get Free Report)

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.