Morning Commentary: Omnicell convertibles in focus on quiet morning

By Abigail W. Adams

Portland, Me., Nov. 3 – It was a slow start to the day in the convertibles secondary space as selling continued in the wake of Federal Reserve chair Jerome Powell’s hawkish comments on Wednesday.

Equities indexes opened Thursday deep in the red but pared their losses as the session progressed.

The Dow Jones industrial average was down 81 points, or 0.30%, the S&P 500 index was down 0.50%, the Nasdaq Composite index was down 0.53% and the Russell 2000 index was down 0.08% shortly before 11 a.m. ET.

Omnicell Inc.’s 0.25% convertible notes due 2025 remained active early Thursday after dominating activity in the space the previous session.

The 0.25% convertible notes were nominally improved outright and continued to expand dollar-neutral as stock rebounded from its 34% drop the previous session.

The 0.25% convertible notes rose about 1 point outright with stock up almost 4% early in the session.

The notes were trading at 86.375 shortly before 11 a.m. ET.

Omnicell’s stock was $51.58, an increase of 3.16%, shortly before 11 a.m. ET.

The 0.25% convertible notes sank 13 points outright but expanded 1 point dollar-neutral on Wednesday after the company’s downwardly revised fourth-quarter guidance sent its stock into a tailspin.

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