Ligand volatile; HubSpot convertible notes soar on earnings; Twitter, Peloton improve

By Abigail W. Adams

Portland, Me., Feb. 12 – While it was a light week for new deal activity, the convertibles secondary space remained active heading into the holiday weekend with earnings-related news continuing to jolt activity in outstanding issues.

There was $114 million on the tape about one hour into the session and $640 million on the tape about one hour before the market close, sources said.

Ligand Pharmaceuticals Inc.’s 0.75% convertible notes due 2023 were active with the notes trading down on an outright basis.

The notes have been volatile alongside stock throughout the week.

HubSpot Inc.’s 0.375% convertible notes due 2025 also jumped alongside stock following its earnings report.

Twitter Inc.’s convertible bonds continued their upward momentum as stock again broke out to a new 52-week high.

Peloton Interactive Inc.’s 0% convertible notes due 2026, the largest deal of the week, also remained active with the notes continuing to improve on an outright basis.

Ligand eyed

Ligand Pharmaceuticals’ 0.75% convertible notes due 2023 were active on Friday with the notes trading down on an outright basis as stock continued its descent after a volatile week.

The 0.75% convertible notes dropped 2.25 point outright with stock off more than 4%.

The notes were changing hands at 106.625 versus a stock price of $174.42 in the late afternoon, according to a market source.

There was more than $21 million of the bonds on the tape during Friday’s session.

The notes have been volatile alongside stock throughout the week.

The 0.75% notes traded as high as 114.5 on Wednesday as stock hit a new 52-week high of $219.75, according to Trace data.

However, they dropped down to 108 on Thursday as stock cratered more than 11%.

Ligand’s stock continued its downward momentum on Friday trading to a high of $183.69 and a low of $168.81 before closing the day at $172.46.

HubSpot’s earnings

HubSpot’s 0.375% convertible notes due 2025 jumped on an outright basis as stock surged following the software company’s fourth-quarter earnings report.

The 0.375% notes were up more than 24 points outright as stock rocketed up more than 16%.

The notes were changing hands at 188.125 versus a stock price of $498.42 in the late afternoon.

There was more than $11 million on the tape heading into the market close.

HubSpot’s stock traded to a low of $497.07 and a high of $527.69 before closing the day at $502.40, an increase of 16.36%.

Stock skyrocketed after the company reported a large earnings beat.

HubSpot reported earnings per share of 40 cents versus analyst expectations for earnings per share of 23 cents.

Revenue was $236.4 million versus analyst expectations for revenue of $252.1 million.

Twitter’s gains continue

Twitter’s convertible notes continued their upward momentum on Friday as stock again broke out to a new 52-week high.

The soon-to-mature 1% convertible notes due Sept. 15, 2021 rose more than 2 points outright.

They were changing hands at 111.25 versus a stock price of $72.42 in the late afternoon.

There was more than $19 million in reported volume during Friday’s session.

Twitter’s 0.25% convertible notes were changing hands at 148 shortly before the market close.

Twitter’s stock traded to a low of $68.40 and a new 52-week high of $73.18 before closing the day at $71.90, an increase of 4.73%.

Twitter’s stock and convertible notes have been on a tear since the company reported earnings post-close on Tuesday.

The 1% convertible notes were trading at 103 on an outright basis at the start of the week.

The 0.25% convertible notes were trading at 127, according to Trace data.

Peloton cycles higher

Peloton’s 0% convertible notes due 2026 continued to cycle higher in active trading on Friday.

The notes rose another 1.5 points outright as stock jumped more than 5.5%.

The notes were changing hands at 109.5 in the late afternoon versus a stock price of $153.41.

There was more than $10.5 million on the tape.

Peloton’s stock traded to a low of $144.88 and a high of $154.83 before closing the day at $154.67, an increase of 5.59%.

Mentioned in this article:

HubSpot Inc. NYSE: HUBS

Ligand Pharmaceuticals Inc. Nasdaq: LGND

Peloton Interactive Inc. Nasdaq: PTON

Twitter Inc. NYSE: TWTR

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