NEW YORK (TheStreet) -- Sears Holdings Corp (SHLD) shares plummeted 17.9% to $41.20 in trading on Monday.
The steep drop comes on the first day of trading since Friday night's completion of its pro-rata spin-off of Lands' End Inc (LEDMV) from Sears Holdings.
Sears received $500 million in aggregate gross proceeds from the move, while distributing 32 million shares of Lands' End to its common stock holders.
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The drop can be attributed to the loss of value from the Lands' End spin-off which is now trading independently, down 0.4% to $31.67 on Monday.
Sears, however, has endured $5.4 billion in losses over the last three years including $1.4 billion in losses in 2013.
TheStreet Ratings team rates SEARS HOLDINGS CORP as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate SEARS HOLDINGS CORP (SHLD) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, disappointing return on equity, poor profit margins and weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows: