Insulet convertible notes in focus; DexCom gains; Wayfair active in secondary market

By Abigail W. Adams

Portland, Me., Aug. 30 – The convertibles secondary space saw a relatively active day on Wednesday with the market firm as the equity rally continued following the latest macro data.

Equity indexes added to their strong gains from the previous session and Treasury yields continued to come in on the heels of the latest GDP print and ADP employment report, which reflected a slowdown in the economy and labor market.

The Dow Jones industrial average closed Wednesday up 38 points, or 0.11%, the S&P 500 index closed up 0.38%, the Nasdaq Composite index closed up 0.54% and the Russell 2000 index closed up 0.37%.

There was $36 million in reported convertibles trading volume about one hour into the session and $420 million on the tape about one hour before the market close with several names bid up, sources said.

While the broader market was strong, topical news pushed Insulet Corp.’s 0.375% convertible notes due 2026 into the spotlight.

While the notes made strong outright gains, they were largely moving in line dollar-neutral.

DexCom Inc.’s 0.375% convertible notes due 2028 also saw a strong session alongside stock although they were also largely unchanged dollar-neutral.

Wayfair Inc.’s convertible notes also saw a flurry of activity on a strong day for the company’s stock.

Insulet in focus

Insulet’s 0.375% convertible notes due 2026 were the most actively traded issue in the secondary space on Wednesday with the notes making strong outright gains alongside stock.

The 0.375% notes rose almost 7 points outright with stock up more than 8% in intraday activity.

The notes were changing hands at $108 versus a stock price of $200.82 early in the session, according to a market source.

They jumped to 111 versus a stock price of $208.84 in the late afternoon.

The notes were moving in line to slightly improved dollar-neutral, a source said.

There was $19 million in reported volume.

Insulet’s stock traded to a low of $197.11 and a high of$210.31 before closing at $201.62, an increase of 6.41%.

Insulet has been active in recent weeks as analysts spar over their recommendations for the company.

The company’s stock saw a near simultaneous analyst upgrade and downgrade the previous week, which sparked volatility in the company’s stock.

Stock shot higher on Wednesday following the company’s announcement that it was releasing its automated insulin delivery system in Germany and reports of insider buying of the company’s stock.

DexCom gains

DexCom’s 0.375% convertible notes due 2028 made outright gains in active trade on a strong day for the company’s stock.

However, the notes were also largely unchanged dollar-neutral, a source said.

The 0.375% notes were trading at 93 versus a stock price of $106.25 in the late afternoon, according to a market source.

There was $10 million in reported volume.

DexCom’s stock traded to a low of $100.75 and a high of $106.95 before closing at $103.42, up 2.82%.

Wayfair active

Wayfair’s convertible notes also saw a flurry of activity with stock up 4% as broader markets continued to rally.

Wayfair’s 1% convertible notes due 2026 gained about 1.625 points outright.

They were changing hands at 93 versus a stock price of $69.19 in the late afternoon, according to a market source.

There was $10 million in reported volume.

The 3.25% convertible notes due 2027 were up about 3.25 points outright.

The notes were seen at 133 versus a stock price of $68.35 in the late afternoon.

There was $6 million in reported volume.

Wayfair’s stock traded to a low of $63.40 and a high of $69.48 before closing at $68.93, an increase of 4.05%.

Mentioned in this article:

DexCom Inc. Nasdaq: DXCM

Insulet Corp. Nasdaq: PODD

Wayfair Inc. NYSE: W

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.