Butterfly Network (NYSE:BFLY) Stock Price Up 10.5% - Time to Buy?

Key Points

• Butterfly Network shares rose 10.5% to about $9.76, despite trading volume falling 79% below the average session volume.
• Analysts maintain a consensus “Hold” rating with an average price target of $5.56; Weiss Ratings reaffirmed its “sell (D-)” rating.
• The company exceeded quarterly expectations, reporting a narrower-than-expected loss and revenue of $32.61 million, but insiders sold nearly 4.91 million shares worth approximately $32.2 million over the past 90 days.

Shares of Butterfly Network, Inc. (NYSE:BFLY - Get Free Report) traded up 10.5% during trading on Monday . The stock traded as high as $9.44 and last traded at $9.7570. 1,388,115 shares were traded during trading, a decline of 79% from the average session volume of 6,739,847 shares. The stock had previously closed at $8.83.

Analysts Set New Price Targets

Separately, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Butterfly Network in a research report on Monday, August 3rd. Three research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Hold" and an average price target of $5.56.

Butterfly Network Stock Up 11.7%

The stock's 50-day moving average is $7.06 and its 200-day moving average is $5.15. The firm has a market cap of $2.63 billion, a P/E ratio of -34.03 and a beta of 2.09.

Butterfly Network (NYSE:BFLY - Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The company reported ($0.01) earnings per share for the quarter, beating analysts' consensus estimates of ($0.04) by $0.03. Butterfly Network had a negative net margin of 66.74% and a negative return on equity of 33.99%. The firm had revenue of $32.61 million during the quarter, compared to the consensus estimate of $29.16 million. As a group, analysts expect that Butterfly Network, Inc. will post -0.18 EPS for the current fiscal year.

Insider Activity

In other news, insider Steve Cashman sold 294,680 shares of Butterfly Network stock in a transaction that occurred on Monday, June 8th. The stock was sold at an average price of $4.66, for a total transaction of $1,373,208.80. Following the sale, the insider owned 1,630,407 shares of the company's stock, valued at approximately $7,597,696.62. This trade represents a 15.31% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Jonathan M. Rothberg sold 1,195,857 shares of the company's stock in a transaction on Friday, July 17th. The shares were sold at an average price of $6.60, for a total value of $7,892,656.20. Following the completion of the transaction, the director owned 54,143 shares of the company's stock, valued at $357,343.80. The trade was a 95.67% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 4,909,059 shares of company stock valued at $32,193,361. Corporate insiders own 21.99% of the company's stock.

Institutional Investors Weigh In On Butterfly Network

A number of institutional investors have recently bought and sold shares of the business. AWM Investment Company Inc. increased its stake in Butterfly Network by 750.0% in the fourth quarter. AWM Investment Company Inc. now owns 3,400,000 shares of the company's stock valued at $12,920,000 after acquiring an additional 3,000,000 shares during the period. Bank of America Corp DE boosted its holdings in Butterfly Network by 71.0% during the first quarter. Bank of America Corp DE now owns 4,165,222 shares of the company's stock valued at $16,827,000 after purchasing an additional 1,728,938 shares in the last quarter. First Light Asset Management LLC boosted its holdings in Butterfly Network by 149.3% during the fourth quarter. First Light Asset Management LLC now owns 2,812,131 shares of the company's stock valued at $10,686,000 after purchasing an additional 1,684,133 shares in the last quarter. Sei Investments Co. bought a new stake in shares of Butterfly Network in the 2nd quarter valued at approximately $2,183,000. Finally, Deutsche Bank AG grew its stake in shares of Butterfly Network by 156.7% in the 4th quarter. Deutsche Bank AG now owns 1,652,237 shares of the company's stock valued at $6,279,000 after purchasing an additional 1,008,556 shares during the period. 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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