Butterfly Network Sees Unusually High Options Volume (NYSE:BFLY)

Key Points

• Butterfly Network’s options activity surged: Traders bought 17,637 call options, roughly 271% above the average call volume.
• Analyst sentiment remains mixed: TD Cowen reaffirmed a “buy” rating with a $10 target, while the broader analyst consensus is “Hold” with an average price target of $6.56.
• The stock rose to $7.78 but remains unprofitable: Butterfly Network reported better-than-expected quarterly revenue and earnings, yet posted a negative net margin and analysts expect a full-year loss.

Butterfly Network, Inc. (NYSE:BFLY - Get Free Report) saw unusually large options trading on Tuesday. Traders acquired 17,637 call options on the stock. This represents an increase of approximately 271% compared to the average volume of 4,749 call options.

Analysts Set New Price Targets

Several brokerages have recently commented on BFLY. TD Cowen restated a "buy" rating and issued a $10.00 price objective on shares of Butterfly Network in a research report on Friday. Weiss Ratings restated a "sell (d-)" rating on shares of Butterfly Network in a report on Monday, August 3rd. Three analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average price target of $6.56.

Butterfly Network Stock Performance

Shares of Butterfly Network stock traded up $0.36 on Tuesday, hitting $7.78. The company's stock had a trading volume of 4,372,404 shares, compared to its average volume of 6,468,957. The company has a market capitalization of $2.07 billion, a price-to-earnings ratio of -26.96 and a beta of 2.08. Butterfly Network has a 1 year low of $1.60 and a 1 year high of $10.05. The firm has a fifty day moving average price of $7.97 and a 200-day moving average price of $6.03.

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. The firm had revenue of $32.61 million for the quarter, compared to analyst estimates of $29.16 million. Butterfly Network had a negative net margin of 66.74% and a negative return on equity of 33.99%. As a group, analysts forecast that Butterfly Network will post -0.18 EPS for the current year.

Insider Buying and Selling

In other Butterfly Network news, General Counsel Nicholas Caezza sold 10,000 shares of the business's stock in a transaction on Tuesday, August 11th. The stock was sold at an average price of $9.75, for a total value of $97,500.00. Following the sale, the general counsel directly owned 300,307 shares of the company's stock, valued at approximately $2,927,993.25. The trade was a 3.22% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CAO Megan Carlson sold 13,804 shares of Butterfly Network stock in a transaction dated Friday, September 4th. The stock was sold at an average price of $7.30, for a total transaction of $100,769.20. Following the completion of the transaction, the chief accounting officer directly owned 412,085 shares of the company's stock, valued at $3,008,220.50. This trade represents a 3.24% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 4,743,569 shares of company stock worth $32,219,597 over the last three months. Corporate insiders own 21.99% of the company's stock.

Institutional Investors Weigh In On Butterfly Network

A number of hedge funds have recently bought and sold shares of BFLY. Bank of America Corp DE raised 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 worth $16,827,000 after purchasing an additional 1,728,938 shares in the last quarter. Janus Henderson Group PLC purchased a new stake in shares of Butterfly Network during the 1st quarter worth approximately $446,000. Dimensional Fund Advisors LP increased its holdings in Butterfly Network by 30.9% during the 1st quarter. Dimensional Fund Advisors LP now owns 2,358,181 shares of the company's stock valued at $9,524,000 after acquiring an additional 557,100 shares in the last quarter. Sei Investments Co. boosted its stake in shares of Butterfly Network by 30.6% during the first quarter. Sei Investments Co. now owns 2,298,894 shares of the company's stock valued at $9,288,000 after acquiring an additional 539,171 shares during the last quarter. Finally, Lotus Technology Management LP purchased a new position in shares of Butterfly Network during the second quarter valued at approximately $1,378,000. Institutional investors and hedge funds own 37.85% of the company's stock.

About Butterfly Network

Butterfly Network, Inc develops portable, semiconductor-based ultrasound systems designed to make diagnostic imaging more accessible across hospitals, clinics, physician offices, emergency services and other care settings. Its technology uses a single handheld probe with software-enabled imaging capabilities, rather than requiring multiple dedicated ultrasound machines.

The company's product portfolio includes the Butterfly iQ, iQ+, and iQ3 handheld ultrasound devices, along with related software and cloud-based tools.

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