What happened

Shares of BigCommerce Holdings (BIGC 3.62%) fell today after the company announced the price of its follow-on stock offering. It's also likely that investors are pushing the stock down after a Citi analyst started coverage of the company today with a sell rating. 

The tech stock had fallen by as much as 10.7% today and was down 8.3% as of 11:20 a.m. EST.

So what 

BigCommerce announced a follow-on public offering earlier this week, in which the company and some of its management said they would sell some of their Series 1 common stock. Today, the company priced those shares at $68, below yesterday's closing price of $73.32, which appeared to disappoint current shareholders.

Red and green line graphs on a black background.

Image source: Getty Images.

The company said it would sell 1 million shares of its own stock and that "certain members of management and entities affiliated with directors of the company" are offering 4 million shares. BigCommerce said there's also a 30-day option in which an additional 750,000 shares could be sold. The company noted in a press release that it won't "receive any proceeds from the sale of the shares by the selling stockholders."

Additionally, Citi analyst Drew Foster initiated coverage of BigCommerce today with a sell rating and a price target of $65.  

The combination of the share price for the new stock offering and Foster's sell rating led BigCommerce investors to push the company's stock price down today. 

Now what 

BigCommerce's stock has been very volatile this year and with today's share price drop, the stock is down 6.8% year to date. Considering that BigCommerce's stock has been very volatile since the company went public back in August, investors should proceed carefully when considering adding BigCommerce to their portfolio.