Morning Commentary: Proofpoint trades actively post earnings; Tesla sees more action

By Rebecca Melvin

New York, Oct. 25 – Proofpoint Inc.’s 0.25% convertibles were trading actively on Friday morning after the Sunnyvale, Calif.-based cyber security company reported earnings that sent its common shares down 5%, a New York-based trader said.

The Proofpoint convertible, of which $920 million priced in August, was seen at 104.5. Shares had been down 5% but were last down 6.7% at $116.15.

The company, which had two previous convertible issues that have been redeemed, beat revenue and earnings expectations, reporting a third-quarter loss of $41.9 million, or 79 cents per share, compared to a loss of $36.1 million, or 69 cents per share in the year-earlier period. Adjusted earnings were 49 cents per shares, and revenue for the quarter rose to $227.4 million from $184.2 million a year earlier.

There was a lot of follow-on trading in two of Tesla Inc.’s three convertible bonds, which surged on Thursday on a surprisingly strong quarterly earnings report.

The Tesla 1.25% convertibles due 2021, or the B series, traded on Friday at 106 and 107 compared to 105ish on Thursday and from about 99 prior to the earnings report.

The Tesla 2% convertibles due 2024, or the D series, traded up to 120.4 in the early going, rising from about 119 from the close on Thursday. It had jumped from 106 where it was trading prior to earnings.

The Tesla 2.375% convertibles due 2022, or the C series, were not seen in trade on Friday. They rose on Thursday to 114.68, which was up from 104ish before the earnings release.

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