Butterfly Network (NYSE:BFLY) Trading 8.8% Higher - What's Next?

Key Points

• Butterfly Network shares rose 8.8% to about $7.74 in mid-day trading, despite volume running 89% below the stock’s average session volume.
• Analysts maintain a consensus “Hold” rating with an average price target of $5.56; ratings include three Buys, one Hold and one Sell.
• The company exceeded quarterly expectations, reporting a loss of $0.01 per share versus the expected $0.04 loss and revenue of $32.61 million versus the $29.16 million consensus, though it remains unprofitable with a negative 66.74% net margin.

Shares of Butterfly Network, Inc. (NYSE:BFLY - Get Free Report) traded up 8.8% during mid-day trading on Monday . The stock traded as high as $7.66 and last traded at $7.7350. 761,749 shares changed hands during trading, a decline of 89% from the average session volume of 6,708,323 shares. The stock had previously closed at $7.11.

Analysts Set New Price Targets

Separately, Weiss Ratings reiterated a "sell (d-)" rating on shares of Butterfly Network in a research note on Wednesday, May 6th. Three investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average price target of $5.56.

Butterfly Network Stock Up 16.6%

The company's fifty day moving average is $6.66 and its 200 day moving average is $5.01. The stock has a market cap of $2.11 billion, a PE ratio of -28.62 and a beta of 2.05.

Butterfly Network (NYSE:BFLY - Get Free Report) last announced its quarterly earnings results on Thursday, July 30th. The company reported ($0.01) earnings per share for the quarter, topping 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 analysts' expectations of $29.16 million.

Insider Activity

In related news, CEO Joseph Devivo sold 211,798 shares of the firm's stock in a transaction on Monday, July 20th. The shares were sold at an average price of $6.56, for a total transaction of $1,389,394.88. Following the completion of the sale, the chief executive officer directly owned 7,672,046 shares of the company's stock, valued at approximately $50,328,621.76. This trade represents a 2.69% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Steve Cashman sold 294,680 shares of the firm's stock in a transaction dated Monday, June 8th. The shares were sold at an average price of $4.66, for a total value of $1,373,208.80. Following the sale, the insider owned 1,630,407 shares of the company's stock, valued at $7,597,696.62. This represents a 15.31% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 4,840,207 shares of company stock valued at $31,652,184 over the last ninety days. 21.99% of the stock is owned by company insiders.

Hedge Funds Weigh In On Butterfly Network

Large investors have recently modified their holdings of the stock. Bay Colony Advisory Group Inc d b a Bay Colony Advisors increased its holdings in Butterfly Network by 4.9% in the second quarter. Bay Colony Advisory Group Inc d b a Bay Colony Advisors now owns 42,500 shares of the company's stock valued at $358,000 after buying an additional 2,000 shares during the last quarter. Principal Financial Group Inc. grew its position in shares of Butterfly Network by 24.0% in the 1st quarter. Principal Financial Group Inc. now owns 14,247 shares of the company's stock worth $58,000 after acquiring an additional 2,753 shares in the last quarter. Farther Finance Advisors LLC increased its holdings in shares of Butterfly Network by 25.4% in the 4th quarter. Farther Finance Advisors LLC now owns 15,281 shares of the company's stock valued at $58,000 after acquiring an additional 3,098 shares during the last quarter. Opal Wealth Advisors LLC increased its holdings in shares of Butterfly Network by 10.1% in the 4th quarter. Opal Wealth Advisors LLC now owns 36,679 shares of the company's stock valued at $139,000 after acquiring an additional 3,355 shares during the last quarter. Finally, Kestra Private Wealth Services LLC raised its position in shares of Butterfly Network by 11.0% during the 4th quarter. Kestra Private Wealth Services LLC now owns 55,517 shares of the company's stock valued at $211,000 after acquiring an additional 5,500 shares in the last quarter. Institutional investors own 37.85% of the company's stock.

Butterfly Network Company Profile

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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