Butterfly Network (NYSE:BFLY) Shares Gap Down - What's Next?

Key Points

• Shares gapped down: BFLY opened at $4.65 vs. the prior close of $4.92 and last traded at $4.56 on volume of about 2.53 million shares.
• Analyst sentiment is mixed with a consensus Hold rating and an average price target of $5.56, while several firms recently raised targets and issued Buy ratings (three Buys, two Holds, one Sell).
• Fundamentals: Butterfly beat the quarter with EPS of -$0.02 (vs. -$0.04 est.) and revenue of $31.51M (vs. $26.25M est.), but remains unprofitable with a negative net margin (~78.95%) and negative ROE (33.13%).

Butterfly Network, Inc. (NYSE:BFLY - Get Free Report)'s stock price gapped down prior to trading on Thursday . The stock had previously closed at $4.92, but opened at $4.65. Butterfly Network shares last traded at $4.56, with a volume of 2,530,048 shares.

Analyst Ratings Changes

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

Butterfly Network Stock Performance

The company has a market capitalization of $1.19 billion, a P/E ratio of -14.98 and a beta of 2.21. The stock has a 50 day moving average price of $4.19 and a 200 day moving average price of $3.55.

Butterfly Network (NYSE:BFLY - Get Free Report) last released its earnings results on Thursday, February 26th. The company reported ($0.02) EPS for the quarter, topping analysts' consensus estimates of ($0.04) by $0.02. Butterfly Network had a negative return on equity of 33.13% and a negative net margin of 78.95%.The company had revenue of $31.51 million for the quarter, compared to analysts' expectations of $26.25 million. As a group, sell-side analysts expect that Butterfly Network, Inc. will post -0.19 earnings per share for the current year.

Hedge Funds Weigh In On Butterfly Network

Hedge funds have recently made changes to their positions in the stock. Ameriprise Financial Inc. purchased a new position in shares of Butterfly Network in the third quarter valued at $25,000. Y Intercept Hong Kong Ltd purchased a new position in Butterfly Network during the third quarter worth about $32,000. BNP Paribas Financial Markets grew its position in Butterfly Network by 707.2% during the second 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 in the last quarter. Wisconsin Wealth Advisors LLC purchased a new position in Butterfly Network during the fourth quarter worth about $38,000. Finally, ExodusPoint Capital Management LP purchased a new position in Butterfly Network during the fourth quarter worth about $38,000. 37.85% of the stock is currently owned by hedge funds and other institutional investors.

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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