Morning Commentary: Axon Enterprises convertibles continue downtrend in early trading

By Abigail W. Adams

Portland, Me., July 24 – It was a sleepy start to the day in the convertibles secondary space on Monday as markets stared down an onslaught of earnings from the bellwethers of tech and the Federal Open Market Committee’s rate decision on Wednesday.

Equity indexes were squeaking out gains shortly before 11 a.m. ET after some dipped into negative territory at the open.

The Dow Jones industrial average was up 178 points, or 0.50%, the S&P 500 index was up 0.40%, the Nasdaq Composite index was up 0.19% and the Russell 2000 index was up 0.04%.

There was $35 million on the tape about one hour into the session with few names seeing concentrated trading activity.

Axon Enterprise Inc.’s 0.5% convertible notes due 2027 were among the most actively traded issues early in the session with $3 million on the tape.

The notes continued to move lower with stock resuming its downtrend.

The 0.5% notes fell 1 point outright with stock off a little more than 1% early in the session.

The convertibles were changing hands just shy of 101 versus a stock price of $179.79 early in the session, according to a market source.

Axon’s stock was trading at $177.58, a decrease of 1.33%, shortly before 11 a.m. ET.

Axon’s convertible notes have fallen about 5 points with stock off more than 8% over the past week.

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