Will Mounting Debt and Plunging Sales Force Sears (SHLD, $0.59) Into a Bankruptcy Filing?
Sears Holding , once a bustling retail chain in the U.S., might be preparing its bankruptcy filing, according to a Wall Street Journal report that cited anonymous sources familiar with the matter.
According to the report, the company has hired the services of M-III Partners to navigate the bankruptcy proceedings, as the retail giant is saddled with $134 million debt due on Oct. 15. Sears has had troubles meeting its debt obligations for a while, even as CEO Eddie Lampert drove several asset liquidations.
Hundreds of Sears and Kmart stores were shuttered down in recent years, amid plunging sales. As of latest quarter, the company has roughly 900 Sears and Kmart stores, compared with more than 4,000 when it merged with Kmart in 2005. Sears has apparently failed to catch up with the e-commerce boom spearheaded by Amazon coupled with traditional player Walmart’s expansion. According to some analysts, the company would need to generate more than $1 billion a year to keep operating - a target that looks too far off for the retailer to meet. Sears has burned through $1.8 billion in cash in its operations during 2017 alone.
Its CEO Eddie Lampert has, over time, tried to salvage the company by chipping in more than $1 billion into the retailer when other sources dried up. This time, if Lampert or other sources are unable to extricate Sears out of its debt troubles and dwindling business, the company could file for a bankruptcy this week, as some reports seem to suggest.
SHLD's MACD Histogram crosses above signal line
The Moving Average Convergence Divergence (MACD) for SHLD turned positive on July 17, 2025. Looking at past instances where SHLD's MACD turned positive, the stock continued to rise in of 26 cases over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on July 14, 2025. You may want to consider a long position or call options on SHLD as a result. In of 45 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where SHLD advanced for three days, in of 184 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 250 cases where SHLD Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for SHLD moved out of overbought territory on June 27, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 35 similar instances where the indicator moved out of overbought territory. In of the 35 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 6 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SHLD declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
SHLD broke above its upper Bollinger Band on June 26, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
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