Nutanix slips; Fortive, Etsy active; Ayaya and RingCentral shares continue to surge

By Rebecca Melvin

New York, Oct. 7 – The convertibles market traded mildly on Monday as U.S. stock indices started the session weaker, turned positive intraday but dropped back again in afternoon trade.

The market was “really quiet,” a New York-based convertibles trader said early Monday.

A second trader said valuations were largely unchanged but noted that the 0% convertibles of Nutanix Inc. were “a touch lower” on a dollar-neutral basis, with shares up 73 cents, or nearly 3%, at $26.01.

Vitamin Shoppe Inc. and Alteryx Inc. were notable in terms of number of bonds that changed hands Monday morning in a generally low volume session.

Vitamin Shoppe’s 2.25% convertibles due 2020 traded at 98.95, according to Trace data. Vitamin Shoppe shares were little changed at $6.52 at late morning.

Alteryx’s 1% convertibles due 2026 traded at 99.139, which was up 1.6 points on an outright basis. Shares of Alteryx were up $5.50, or 5%, to $116.19.

Later, Fortive Corp. and Etsy Inc. were top traders. The Fortive 0.875% convertibles due 2022 and the Etsy 0.125% convertibles due 2026 were both lower by less than 0.2 point and trading at 98 and change.

Avaya Holdings Corp. and RingCentral Inc. were also still active in trade after the companies’ convertibles issues were the main focus of Friday’s session after news that they have inked a strategic partnership.

“The AVYA/RNG stocks continue to rip, but I am not sure what the bonds are doing,” a market source said.

The Avaya 2.25% convertibles due 2023 traded at 89.65, which was up 0.9 point on the day. The shares of the Santa Clara, Calif.-based digital communications software company traded up to $14.09, which was up 6.5% on the day on top of a 25% surge on Friday.

The RingCentral 0% notes due 2023 gained to 215.5 which was up 12 points from about 204 on Friday and 165 on Thursday. RingCentral shares gained $9.42, or 6%, to $172.72, which was on top of a 28% gain on Friday.

Tesla Inc.’s 2% convertibles due 2024 also continued to trade after they bounced back to 99 in active trade on Friday after the notes slipped below par to 98 and change. The electric car maker was under pressure as investors evaluated whether it missed sales expectations due to lower demand. Tesla shares recouped $6.29, or 2.7% to $237.72, after slipping on Thursday and Friday.

The Dow Jones industrial average closed down 0.4% and the S&P 500 stock index lost 0.5%, to 26,478.02 and 2,938.79, respectively.

Investors are worried about the U.S.-China trade talks and the trade war, and mixed economic data that has been coming in this month has put a damper on stocks. But there was a cross wind that has tempered losses, as expectations are growing that the U.S. Federal Reserve will cut interest rates at the end of this month, which will mark the third time this year.

Mentioned in this article:

Alteryx Inc. NYSE: AYX

Avaya Holdings Corp. Nasdaq: AVYA

Etsy Inc. Nasdaq: ETSY

Fortive Corp. NYSE: FTV

Nutanix Inc. Nasdaq: NTNX

RingCentral Inc. NYSE: RNG

Vitamin Shoppe Inc. NYSE: VSI

Tesla Inc. Nasdaq: TSLA

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