Federal Realty, Evergy active; TechTarget skyrockets; Cytokinetics plummets outright

By Abigail W. Adams

Portland, Me., Jan. 11 – The most anticipated news event of the week came and went on Thursday with the latest Consumer Price Index report failing to generate much volatility.

While equity indexes were in the red and Treasuries largely flat early in the session as markets digested a stronger-than-anticipated CPI print, it did little to waiver the market’s rate cut forecasts.

Indexes pared their losses to close the day mixed as Treasuries staged a late-session rally with the 10-year Treasury yield dropping below 4%.

The Dow Jones industrial average closed Thursday up 15 points, or 0.04%, the S&P 500 index closed down 0.07%, the Nasdaq Composite index was flat and the Russell 2000 index closed down 0.75%.

There was $82 million in reported volume about one hour into the session and $550 million in the late afternoon with topical news driving activity and large price movements in the space.

Federal Realty OP LP’s 3.25% exchangeable notes due 2029 returned to focus with the notes slightly weaker in heavy volume.

Evergy Inc.’s 4.5% convertible notes due 2027 (Baa2/BBB) were active although largely unchanged as the issue entered the Refinitiv convertible indices.

Cytokinetics Inc.’s 3.5% convertible notes due 2027 were again moving on buyout news with the notes collapsing outright but improving on hedge with Novartis’ acquisition of the company reportedly off the table.

TechTarget, Inc.’s 0% convertible notes due 2026 were the major gainers of the session with the notes skyrocketing on an outright and dollar-neutral basis after a merger announcement.

Federal Realty weaker

Federal Realty’s 3.25% exchangeable notes due 2029, the sole deal to price over the week, returned to focus on Thursday with the notes slightly weaker in heavy volume.

The notes were off about 0.375 point outright with stock down 1%.

They were wrapped around par versus a stock price of $102.08 in the late afternoon, according to a market source.

There was $70 million in reported volume.

Federal Realty’s stock traded to a low of $101.63 and a high of $103.33 before closing at $101.98, a decrease of 1.23%.

While slightly weaker on Thursday, the notes have put in a solid performance since pricing at par post-close on Monday with the notes expanded dollar-neutral.

Evergy active

Evergy’s 4.5% convertible notes due 2027 saw heavy volume although with little movement in price as the notes enter the Refinitiv convertible indices.

The 4.5% notes were changing hands at 103.625 versus a stock price of $54.04 early in the session, according to a market source.

They traded down alongside stock as the session progressed and were seen changing hands at 103.125 versus a stock price of $53.28 in the late afternoon.

There was $25.5 million in reported volume.

Evergy’s stock traded to a low of $53.02 and a high of $54.11 before closing at $53.35, off 1.35%.

Evergy’s convertible notes have seen heavy volume in the run-up to their addition to the Refinitiv indices with the notes added at the monthly rebalance on Thursday.

Cytokinetics buyout out

Cytokinetics’ 3.5% convertible notes due 2027 remained volatile on acquisition news with the notes collapsing outright alongside stock but improving on hedge with Novartis’ buyout of the company reportedly off the table.

The 3.5% notes sank 38 points outright as stock plunged more than 20% in intraday activity.

The convertibles were changing hands at 173.125 versus a stock price of $80.07 in the late afternoon.

The notes improved about 0.5 point on hedge, a source said.

There was $25 million in reported volume.

Cytokinetics’ stock traded to a low of $73.12 and a high of $100.49 before closing at $84.95, a decrease of 16.41%.

Cytokinetics’ stock surged to the upside on Monday after the Wall Street Journal reported that Novartis was in late-stage acquisition talks with the company.

Stock plunged to the downside on Thursday after the Wall Street Journal reported that the Novartis acquisition was apparently off the table.

TechTarget skyrockets

TechTarget’s 0% convertible notes due 2026 claimed the title of largest gainer of Thursday’s session after the company announced a business combination.

The 0% notes jumped 11 points outright.

They were trading at 94.5 versus a stock price of $39.42 in the late afternoon, according to a market source.

There was $23 million in reported volume.

TechTarget’s stock traded to a low of $38.58 and a high of $41.93 before closing at $39.66, an increase of 12.45%.

The convertible notes skyrocketed after the company announced a business combination with Informa Tech’s digital business, which will create a new company called New TechTarget.

TechTarget’s shareholders will receive $11.79 per share and retain a 43% stake in the new company.

Mentioned in this article:

Cytokinetics Inc. Nasdaq: CYTK

Evergy Inc. Nasdaq: EVRG

Federal Realty Investment Trust NYSE: FRT

TechTarget, Inc. Nasdaq: TTGT

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