Please ensure Javascript is enabled for purposes of website accessibility

Why Appian Stock Dipped Today

By Evan Niu, CFA - Feb 1, 2021 at 12:18PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The low-code development platform's largest institutional investor continues to trim its position.

What happened

Shares of Appian (APPN -0.47%) have dipped today, down by 6% as of 11:30 a.m. EST, after Abdiel Capital disclosed additional sales as it trims its position. The hedge fund is Appian's largest shareholder.

So what

In fresh Form 4 regulatory filings, Abdiel Capital reported that it sold nearly 135,000 shares of Appian last week on Jan. 28. That was a particularly volatile trading day, and the prices ranged from $215.44 to $243.45, which largely mirrors that day's trading range. Abdiel Capital now holds approximately 5.28 million shares, or roughly 14% of Class A shares outstanding.

Red stock chart going down with numbers in the background

Image source: Getty Images.

The disclosure follows other trades that Abdiel Capital had revealed on Friday for sales that occurred on Jan. 27. The institutional investor sold nearly 700,000 shares last Wednesday.

Now what

Abdiel Capital had started to accumulate a substantial stake in the tech company, which provides a low-code automation platform for software developers, back in 2017. With the stock quadrupling over the past six months, it should come as little surprise that the fund has been cashing out some of its profits. At the end of the third quarter, Abdiel Capital was holding over 8 million shares.

At least one Wall Street analyst thinks that Appian shares have run too far. Morgan Stanley analyst Sanjit Singh recently reiterated an underweight rating and adjusted his price target from $80 to $100, or less than half of current levels. Appian is scheduled to report fourth-quarter results on Feb. 18.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Appian Stock Quote
$47.14 (-0.47%) $0.22

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/03/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.