Joseph Devivo Sells 211,798 Shares of Butterfly Network (NYSE:BFLY) Stock

Key Points

• CEO Joseph Devivo sold 211,798 Butterfly Network shares at an average price of $6.56, generating approximately $1.39 million. The sale was made to cover tax-withholding obligations tied to vested equity awards, reducing his direct ownership by 2.69% to 7.67 million shares.
• Butterfly Network shares recently traded at $7.06, well above the analyst consensus price target of $5.56. Analysts’ overall rating is “Hold,” while the company remains unprofitable despite quarterly revenue and earnings modestly exceeding expectations.
• Institutional investors own 37.85% of BFLY, with several funds increasing their positions. Meanwhile, the company faces additional insider-selling concerns after founder Jonathan Rothberg reportedly sold about 3.79 million shares for roughly $25 million.

Butterfly Network, Inc. (NYSE:BFLY - Get Free Report) CEO Joseph Devivo sold 211,798 shares of the firm's stock in a transaction dated Monday, July 20th. The stock was sold at an average price of $6.56, for a total transaction of $1,389,394.88. Following the completion of the transaction, the chief executive officer directly owned 7,672,046 shares in the company, valued at approximately $50,328,621.76. This represents a 2.69% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Joseph Devivo also recently made the following trade(s):

• On Tuesday, July 7th, Joseph Devivo sold 204,725 shares of Butterfly Network stock. The shares were sold at an average price of $7.87, for a total value of $1,611,185.75.

Butterfly Network Price Performance

Butterfly Network stock traded down $0.01 during trading on Tuesday, reaching $7.06. 1,278,445 shares of the company were exchanged, compared to its average volume of 6,675,680. The stock's 50 day simple moving average is $6.42 and its two-hundred day simple moving average is $4.92. The company has a market capitalization of $1.80 billion, a P/E ratio of -23.52 and a beta of 2.05. Butterfly Network, Inc. has a 52-week low of $1.32 and a 52-week high of $9.69.

Butterfly Network (NYSE:BFLY - Get Free Report) last posted its quarterly earnings results on Thursday, April 30th. The company reported ($0.03) EPS for the quarter, topping the consensus estimate of ($0.04) by $0.01. The business had revenue of $26.53 million for the quarter, compared to analyst estimates of $26.08 million. Butterfly Network had a negative return on equity of 34.41% and a negative net margin of 73.63%. As a group, equities analysts forecast that Butterfly Network, Inc. will post -0.18 earnings per share for the current year.

Institutional Trading of Butterfly Network

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in BFLY. Invesco Ltd. purchased a new position in shares of Butterfly Network during the first quarter valued at approximately $85,000. Goldman Sachs Group Inc. grew its stake in Butterfly Network by 4.1% in the 1st quarter. Goldman Sachs Group Inc. now owns 756,426 shares of the company's stock worth $1,725,000 after acquiring an additional 29,958 shares during the period. JPMorgan Chase & Co. grew its stake in Butterfly Network by 9,055.9% in the 2nd quarter. JPMorgan Chase & Co. now owns 92,017 shares of the company's stock worth $184,000 after acquiring an additional 91,012 shares during the period. Legal & General Group Plc raised its holdings in Butterfly Network by 136.5% in the 2nd quarter. Legal & General Group Plc now owns 206,985 shares of the company's stock valued at $414,000 after acquiring an additional 119,455 shares during the last quarter. Finally, Rhumbline Advisers purchased a new position in shares of Butterfly Network during the 2nd quarter worth $475,000. Hedge funds and other institutional investors own 37.85% of the company's stock.

Analyst Ratings Changes

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, two have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and an average price target of $5.56.

Butterfly Network News Roundup

Here are the key news stories impacting Butterfly Network this week:

• Positive Sentiment: Analysts are watching for continued momentum in Butterfly’s iQ3 handheld ultrasound system, Compass AI software adoption and growth in its Embedded business. Revenue is expected to increase approximately 21.5% in the second quarter, creating a potential catalyst if results and guidance meet or exceed expectations. Can AI Momentum and Embedded Growth Lift BFLY's Q2 Results?
• Neutral Sentiment: Rothberg’s sales were conducted through pre-arranged 10b5-1 trading plans and were reportedly tied to estate planning, which reduces the likelihood that they reflect a negative view of Butterfly’s business. The company’s stock has also risen sharply over the past year, providing a possible explanation for the timing. Butterfly Network Founder Rothberg Sells Another 660,000 Shares. Should Investors Worry?
• Negative Sentiment: Rothberg sold approximately 3.79 million shares from July 17 through July 22 for about $25.0 million in total. The transactions reduced his direct ownership by roughly 95.7% from the July 17 filing and by 60.3% in the subsequent sale, leaving investors with a significant insider-selling signal and additional potential supply of shares.

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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