What happened

Shares of Appian (APPN -0.89%) 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.