Sears Holdings Stock Plunges to New Low on Bankrutpcy Buzz

Short sellers have been in the driver's seat on SHLD stock

by Karee Venema

Published on Oct 10, 2018 at 10:27 AM
Updated on Oct 11, 2018 at 12:19 PM

Sears Holdings Corp (NASDAQ:SHLD) could follow Toys 'R Us and Mattress Firm as the next retailer to fold. According to the Wall Street Journal, the Kenmore parent is preparing to file for bankruptcy (subscription required) with a $134 million debt payment due on Monday, Oct. 15. The Journal also reported Sears appointed restructuring specialist Alan Carr to its board yesterday.

In reaction, SHLD has plunged 33.1% to trade at $0.39 -- slicing through yesterday's then-record low of $0.56. The shares hit a fresh bottom at $0.35 earlier, and could be headed toward their worst daily loss ever. On Dec. 27, 2011, SHLD shed 27.2%, its biggest one-day drop to date.

Today's negative price action is just more of the same for a stock that was trading near $120 back in 2007. Sears stock has plunged nearly 89%, and is on track for its 13th loss in 14 sessions.

Short sellers have profited handsomely from Sears Holdings' fundamental and technical troubles. The 20.3 million SHLD shares currently sold short is the most since April 2014, representing 29% of the stock's available float, or seven times the average daily pace of trading.

SAGE Therapeutics Stock Hot Ahead of Earnings
The drug name is scheduled to report on Tuesday
Bear Signal Flashing for This Healthcare Stock Before Earnings
At least four analysts have issued price-target cuts on the stock this week
Signal Says This Retail Stock's on Sale
The shares pulled back this week on news of a Levi Strauss IPO
START YOUR DAY SMARTER.

Get Schaeffer's pre-market news bulletin every morning before the bell rings.
It's free to sign up.


Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


How to Predict Volatility Based on Earnings
A free tool can help traders bank big during the upcoming earnings season.
3 of Today's Worst Nasdaq Stocks
The stocks are sitting out today's rally in the broader equities market
2019 Rally Continues for Stock Market
The Nasdaq is eyeing its longest weekly win streak since 2016
How to Predict Volatility Based on Earnings
A free tool can help traders bank big during the upcoming earnings season.