Butterfly Network (NYSE:BFLY) Trading Down 7.8% - What's Next?

Key Points

• Butterfly Network shares fell 7.8% to about $8.80, with trading volume down 65% from the average session.
• Analyst sentiment remains mixed: three analysts rate the stock Buy, one Hold and one Sell, producing an overall “Hold” rating and a consensus price target of $5.56.
• The company beat quarterly earnings and revenue expectations, but remains unprofitable; insiders have sold nearly 5 million shares worth approximately $33 million over the past 90 days.

Butterfly Network, Inc. (NYSE:BFLY - Get Free Report)'s stock price was down 7.8% during trading on Monday . The company traded as low as $8.57 and last traded at $8.8010. Approximately 2,339,377 shares traded hands during trading, a decline of 65% from the average session volume of 6,675,796 shares. The stock had previously closed at $9.55.

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings restated a "sell (d-)" rating on shares of Butterfly Network in a report on Monday, August 3rd. Three equities research 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. Based on data from MarketBeat, the company has an average rating of "Hold" and a consensus target price of $5.56.

Butterfly Network Stock Down 5.7%

The business's 50 day simple moving average is $7.91 and its 200 day simple moving average is $5.50. The company has a market capitalization of $2.40 billion, a PE ratio of -31.05 and a beta of 2.09.

Butterfly Network (NYSE:BFLY - Get Free Report) last released its earnings results on Thursday, July 30th. The company reported ($0.01) earnings per share for the quarter, topping the consensus estimate 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 business had revenue of $32.61 million for the quarter, compared to the consensus estimate of $29.16 million. On average, analysts anticipate that Butterfly Network, Inc. will post -0.18 earnings per share for the current fiscal year.

Insider Activity

In other news, CAO Megan Carlson sold 68,852 shares of the stock in a transaction on Friday, July 31st. The stock was sold at an average price of $7.86, for a total value of $541,176.72. Following the completion of the sale, the chief accounting officer owned 425,889 shares in the company, valued at $3,347,487.54. This represents a 13.92% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Jonathan M. Rothberg sold 1,195,857 shares of the firm's stock in a transaction on Friday, July 17th. The stock was sold at an average price of $6.60, for a total value of $7,892,656.20. Following the completion of the sale, the director directly owned 54,143 shares of the company's stock, valued at approximately $357,343.80. This trade represents a 95.67% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 4,987,405 shares of company stock worth $32,975,004. 21.99% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Butterfly Network

Hedge funds have recently bought and sold shares of the business. KBC Group NV purchased a new position in Butterfly Network during the 1st quarter valued at about $25,000. Ameriprise Financial Inc. purchased a new stake in shares of Butterfly Network in the third quarter worth approximately $25,000. BNP Paribas Financial Markets lifted its position in shares of Butterfly Network by 707.2% in the second quarter. BNP Paribas Financial Markets now owns 16,258 shares of the company's stock worth $33,000 after purchasing an additional 14,244 shares in the last quarter. ExodusPoint Capital Management LP acquired a new stake in shares of Butterfly Network during the fourth quarter worth approximately $38,000. Finally, Sfmg LLC acquired a new stake in shares of Butterfly Network during the fourth quarter worth approximately $39,000. 37.85% of the stock is owned by hedge funds and other institutional investors.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source