Butterfly Network (NYSE:BFLY) Shares Down 6.8% - Here's What Happened

Key Points

• Butterfly Network (NYSE:BFLY) shares fell about 6.8% to roughly $3.87 in mid‑day trading, with volume (~584,781 shares) about 90% below the average daily volume.
• Analyst views are mixed: the consensus rating is Hold with a consensus price target of $5.56, while individual ratings range from Buy to Strong Sell.
• The company beat quarterly revenue ($31.51M) and EPS (($0.02)) estimates but remains unprofitable (net margin ~78.95%), analysts expect FY EPS around -$0.35, and insiders have sold over 1.23M shares in the past three months.

Butterfly Network, Inc. (NYSE:BFLY - Get Free Report) dropped 6.8% during mid-day trading on Friday . The company traded as low as $3.90 and last traded at $3.8670. Approximately 584,781 shares changed hands during mid-day trading, a decline of 90% from the average daily volume of 6,085,578 shares. The stock had previously closed at $4.15.

Wall Street Analyst Weigh In

Several research analysts have recently commented on BFLY shares. Zacks Research lowered shares of Butterfly Network from a "hold" rating to a "strong sell" rating in a research note on Thursday, February 26th. Craig Hallum reiterated a "buy" rating and issued a $5.25 price objective on shares of Butterfly Network in a report on Wednesday, January 21st. Loop Capital set a $5.50 target price on shares of Butterfly Network in a research report on Monday, March 2nd. Lake Street Capital raised their target price on Butterfly Network from $4.00 to $5.50 and gave the company a "buy" rating in a report on Tuesday, January 20th. Finally, TD Cowen boosted their price target on Butterfly Network from $4.50 to $6.00 and gave the stock a "buy" rating in a research report on Friday, February 27th. Three research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Hold" and a consensus price target of $5.56.

Butterfly Network Price Performance

The company has a market capitalization of $999.43 million, a P/E ratio of -12.66 and a beta of 2.27. The stock's fifty day simple moving average is $3.77 and its 200-day simple moving average is $3.10.

Butterfly Network (NYSE:BFLY - Get Free Report) last posted its quarterly earnings data on Thursday, February 26th. The company reported ($0.02) earnings per share for the quarter, topping the consensus estimate of ($0.04) by $0.02. The business had revenue of $31.51 million during the quarter, compared to analysts' expectations of $26.25 million. Butterfly Network had a negative return on equity of 33.13% and a negative net margin of 78.95%. On average, research analysts predict that Butterfly Network, Inc. will post -0.35 earnings per share for the current year.

Insider Activity

In related news, EVP John N. Doherty sold 60,182 shares of the company's stock in a transaction on Wednesday, January 7th. The shares were sold at an average price of $3.98, for a total transaction of $239,524.36. Following the completion of the transaction, the executive vice president directly owned 1,234,688 shares in the company, valued at $4,914,058.24. This represents a 4.65% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Jonathan M. Rothberg sold 335,834 shares of the stock in a transaction on Thursday, January 8th. The shares were sold at an average price of $4.18, for a total transaction of $1,403,786.12. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 1,236,330 shares of company stock valued at $5,072,023. 25.18% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the stock. Ameriprise Financial Inc. acquired a new stake in Butterfly Network during the third quarter worth about $25,000. Y Intercept Hong Kong Ltd acquired a new position in Butterfly Network in the third quarter worth about $32,000. BNP Paribas Financial Markets lifted its position in shares of Butterfly Network by 707.2% during the 2nd quarter. BNP Paribas Financial Markets now owns 16,258 shares of the company's stock worth $33,000 after buying an additional 14,244 shares during the period. Wisconsin Wealth Advisors LLC acquired a new position in Butterfly Network during the fourth quarter worth $38,000. Finally, ExodusPoint Capital Management LP acquired a new position in Butterfly Network during the fourth quarter worth $38,000. Institutional investors and hedge funds own 37.85% of the company's stock.

About Butterfly Network

Butterfly Network, Inc is a medical technology company focused on democratizing access to diagnostic imaging through its proprietary ultrasound-on-chip platform. The company's flagship device, the Butterfly iQ, leverages semiconductor technology to deliver whole-body ultrasound imaging in a handheld form factor. This portable system connects to a compatible smart device, enabling point-of-care scanning across a variety of clinical settings.

Beyond its hardware offering, Butterfly Network provides a cloud-based software suite that supports image storage, analysis and remote collaboration.

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