Morning Commentary: Nutanix convertible notes gain post-earnings as activity picks up

By Abigail W. Adams

Portland, Me., Sept. 2 – There was an uptick of activity in the convertibles secondary space on Thursday as accounts put money to work heading into the new month.

Equity benchmarks launched the day in the green following better-than-expected unemployment numbers.

The Dow Jones industrial average was up 156 points, or 0.44%, the S&P 500 index was up 0.36% and the Nasdaq Composite was up 0.29% shortly before 11 a.m. ET.

There was $187 million on the tape a little over one hour into Thursday’s session.

Nutanix Inc.’s 0% convertible notes due 2023 were among the most notable movers in the space with the notes making large gains on an outright and dollar-neutral basis following better-than-expected earnings.

The 0% convertible notes rose 4 points outright with stock up more than 10%.

The notes were changing hands at 109.75 versus a stock price of $41.28 early in the session.

The notes expanded 1 to 1.5 points dollar-neutral, a source said.

Nutanix’s stock was trading at $40.77, an increase of 10.34%, shortly before 11 a.m. ET.

Stock popped after the company beat on both the top and bottom lines.

Nutanix reported a loss per share of 26 cents versus analyst expectations for a loss of 42 cents.

Revenue was $390.7 million versus analyst expectations for revenue of $362.9 million.

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