Butterfly Network (NYSE:BFLY) Shares Up 6.5% - Time to Buy?

Key Points

• Shares jumped ~6.5% to about $4.18 on Tuesday, but trading volume was roughly 61% below the average session, suggesting the move occurred on lighter-than-normal activity.
• Analysts are mixed: several firms raised price targets to the $5.50–$6.00 range, yet the MarketBeat consensus remains a "Hold" with an average target of $5.56.
• Butterfly beat the latest quarter's EPS and revenue estimates (EPS -$0.02 vs. -$0.04; revenue $31.5M vs. $26.25M) but remains unprofitable with wide negative margins, and insiders have sold material positions (≈1.3M shares sold recently).

Butterfly Network, Inc. (NYSE:BFLY - Get Free Report)'s stock price shot up 6.5% during mid-day trading on Tuesday . The stock traded as high as $4.18 and last traded at $4.1650. 2,446,691 shares changed hands during trading, a decline of 61% from the average session volume of 6,345,497 shares. The stock had previously closed at $3.91.

Analyst Upgrades and Downgrades

Several equities research analysts recently weighed in on the stock. Lake Street Capital increased their target price on shares of Butterfly Network from $4.00 to $5.50 and gave the company a "buy" rating in a research note on Tuesday, January 20th. TD Cowen upped their price target on Butterfly Network from $4.50 to $6.00 and gave the company a "buy" rating in a report on Friday, February 27th. Zacks Research downgraded Butterfly Network from a "hold" rating to a "strong sell" rating in a research report on Thursday, February 26th. Craig Hallum reissued a "buy" rating and set a $5.25 price objective on shares of Butterfly Network in a report on Wednesday, January 21st. Finally, Wall Street Zen upgraded Butterfly Network from a "sell" rating to a "hold" rating in a research note on Sunday, November 23rd. Three research analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, Butterfly Network presently has a consensus rating of "Hold" and an average target price of $5.56.

Butterfly Network Stock Up 7.5%

The company has a market capitalization of $1.06 billion, a price-to-earnings ratio of -13.63 and a beta of 2.27. The business has a fifty day simple moving average of $3.80 and a two-hundred day simple moving average of $2.98.

Butterfly Network (NYSE:BFLY - Get Free Report) last issued its earnings results on Thursday, February 26th. The company reported ($0.02) earnings per share (EPS) for the quarter, topping analysts' consensus estimates 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%. As a group, equities analysts predict that Butterfly Network, Inc. will post -0.35 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Butterfly Network news, EVP John N. Doherty sold 60,182 shares of Butterfly Network stock in a transaction on Wednesday, January 7th. The stock was 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 of the company's stock, valued at approximately $4,914,058.24. This trade represents a 4.65% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CTO Victor Ku sold 35,968 shares of the business's stock in a transaction on Monday, January 5th. The shares were sold at an average price of $3.82, for a total transaction of $137,397.76. Following the completion of the sale, the chief technology officer owned 811,962 shares in the company, valued at $3,101,694.84. This represents a 4.24% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 1,298,695 shares of company stock worth $5,322,080 over the last three months. 25.18% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Butterfly Network

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc. increased its holdings in shares of Butterfly Network by 4.3% during the third quarter. Vanguard Group Inc. now owns 11,040,080 shares of the company's stock worth $21,307,000 after buying an additional 453,258 shares in the last quarter. ARK Investment Management LLC boosted its holdings in shares of Butterfly Network by 1.6% in the 4th quarter. ARK Investment Management LLC now owns 6,244,427 shares of the company's stock worth $23,729,000 after acquiring an additional 99,079 shares in the last quarter. Hood River Capital Management LLC grew its position in Butterfly Network by 3.6% during the 2nd quarter. Hood River Capital Management LLC now owns 5,127,383 shares of the company's stock worth $10,255,000 after acquiring an additional 176,515 shares during the last quarter. Geode Capital Management LLC increased its holdings in Butterfly Network by 1.6% during the 4th quarter. Geode Capital Management LLC now owns 4,679,120 shares of the company's stock valued at $17,785,000 after purchasing an additional 75,243 shares in the last quarter. Finally, AWM Investment Company Inc. increased its holdings in Butterfly Network by 750.0% during the 4th quarter. AWM Investment Company Inc. now owns 3,400,000 shares of the company's stock valued at $12,920,000 after purchasing an additional 3,000,000 shares in the last quarter. 37.85% of the stock is currently owned by institutional investors and hedge funds.

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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