Morning Commentary: Convertibles primary remains dormant; Alteryx in focus early

By Abigail W. Adams

Portland, Me., Oct. 6 – The convertibles primary market was again dormant early Tuesday despite Monday’s rally in equities.

October and November are projected to be busy months for the primary market with an active pipeline of new deals, a source said.

However, many issuers are in earnings season blackout and a pickup in new deal activity is not expected until at least two weeks.

Meanwhile, the secondary space saw an uptick of activity as equities wavered between gains ahead of Federal Reserve chairman Jerome Powell’s speech about the economy.

Investors were actively digesting Powell’s comments about the need for additional stimulus as of 11 a.m. ET.

There was about $91 million of convertibles trading on the tape early in Tuesday’s session, a source said.

Alteryx Inc.’s convertible notes were in focus as the computer software company’s stock soared after the company raised its third-quarter guidance.

Alteryx’s 1% convertible notes due 2026 jumped more than 12 points outright with stock up more than 25%.

The notes were changing hands at 112.75 early in the session with almost $10 million in reported volume.

They expanded about 2.5 points outright, a source said.

While less active, Alteryx’s 0.5% convertible notes due 2024 jumped 10 points outright to 108.875 early in the session.

There was about $2 million in reported volume.

Both issues were below par for much of September.

Alteryx’s stock traded to a high of $147.50 early Tuesday but was $144.29 shortly before 11 a.m. ET.

Stock skyrocketed after the company announced a shakeup in its leadership and raised its revenue guidance.

The company announced that Mark Anderson, former president of Palo Alto Networks Inc., would succeed Dean Stoecker as chief executive officer.

Revenue guidance was also increased to $126 million to $128 million from the previous range of $111 million to $115 million.

Analysts had been expecting revenue of $113.5 million, MarketWatch reported.

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