The Bigtincan Holdings Ltd (ASX: BTH) share price has come under pressure on Friday.
In morning trade the AI-powered sales enablement automation platform provider's shares are down 3% to 96 cents.
Why is the Bigtincan share price tumbling lower?
Investors appear to have been selling Bigtincan's shares in response to news that one of its directors has been offloading a portion of his holding this week.
Change of director's interest notices reveal that non-executive director John Scull has made two large share sales this week.
On February 3 Mr Scull sold 643,076 shares through an on-market trade for a total consideration of $624,471. This equates to an average of approximately 97.1 cents per share.
Then on February 5 the director sold a further 2,500,318 shares through an on-market trade. Mr Scull received a total consideration of $2,388,846 or ~95.5 cents per share for this parcel.
Combined, the director offloaded a total of 3,143,394 shares at an average of ~95.9 cents per share for a total of just over $3 million.
Whilst this is a sizeable sale, Mr Scull still has plenty of skin in the game. Following these share sales, the director has an interest of 11,782,174 shares.
No explanation was given for the share sales.
How has Bigtincan been performing?
Bigtincan has been a very impressive performer so far in FY 2020. This is in respect to both its financial and share price performance.
During the second quarter, Bigtincan revealed that its cash receipts had more than doubled compared to the prior corresponding period.
In addition to this, it advised that its annualised recurring revenue (ARR) growth had continued and reached $32.4 million at the end of the half. This was an increase of 55% on the prior corresponding period.
And thanks to a major new contract win, investors appear very confident this strong form can continue. As a result, they have been fighting to buy its shares, leading to them more than tripling in value over the last 12 months.
