Butterfly Network (NYSE:BFLY) Reaches New 52-Week High After Analyst Upgrade

Key Points

• Butterfly Network shares hit a new 52-week high of $10.05 after Needham upgraded the stock to a moderate buy rating, though the shares later traded at $9.32.
• Analyst sentiment is mixed: four analysts rate BFLY a Buy, while one rates it Hold and another Sell. The consensus is “Moderate Buy,” but the average price target of $7.25 is below the recent trading price.
• Insiders sold 4.74 million shares worth approximately $32.2 million over the past three months, while the company continues to report losses despite quarterly revenue and EPS exceeding analyst expectations.

Butterfly Network, Inc. (NYSE:BFLY - Get Free Report) shares reached a new 52-week high during mid-day trading on Wednesday after Needham & Company LLC upgraded the stock to a moderate buy rating. The company traded as high as $10.05 and last traded at $9.32, with a volume of 1236427 shares changing hands. The stock had previously closed at $9.93.

Several other research firms also recently weighed in on BFLY. Weiss Ratings reiterated a "sell (d-)" rating on shares of Butterfly Network in a research report on Monday, August 3rd. TD Cowen restated a "buy" rating and issued a $10.00 price target on shares of Butterfly Network in a report on Friday, September 11th. Four analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $7.25.

Insider Activity at Butterfly Network

In other Butterfly Network news, insider Steve Cashman sold 140,112 shares of the firm's stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $7.30, for a total value of $1,022,817.60. Following the completion of the sale, the insider directly owned 1,490,295 shares in the company, valued at $10,879,153.50. This trade represents a 8.59% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Joseph Devivo sold 68,346 shares of the company's stock in a transaction dated Monday, August 10th. The shares were sold at an average price of $10.01, for a total value of $684,143.46. Following the transaction, the chief executive officer directly owned 7,603,700 shares in the company, valued at $76,113,037. This represents a 0.89% 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. Insiders have sold a total of 4,743,569 shares of company stock valued at $32,219,597 over the last three months. Company insiders own 21.99% of the company's stock.

Hedge Funds Weigh In On Butterfly Network

Hedge funds and other institutional investors have recently made changes to their positions in the company. Bay Colony Advisory Group Inc d b a Bay Colony Advisors lifted its stake in shares of Butterfly Network by 4.9% in the 2nd 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 purchasing an additional 2,000 shares during the last quarter. HighTower Advisors LLC raised its holdings in Butterfly Network by 11.5% during the second quarter. HighTower Advisors LLC now owns 20,430 shares of the company's stock worth $172,000 after purchasing an additional 2,110 shares in the last quarter. The Manufacturers Life Insurance Company lifted its stake in Butterfly Network by 4.0% in the second quarter. The Manufacturers Life Insurance Company now owns 55,326 shares of the company's stock valued at $466,000 after buying an additional 2,125 shares during the last quarter. Principal Financial Group Inc. increased its position in Butterfly Network by 24.0% in the 1st quarter. Principal Financial Group Inc. now owns 14,247 shares of the company's stock valued at $58,000 after acquiring an additional 2,753 shares during the period. Finally, AXQ Capital LP raised its position in Butterfly Network by 15.8% during the 2nd quarter. AXQ Capital LP now owns 34,555 shares of the company's stock worth $291,000 after buying an additional 4,716 shares during the last quarter. Hedge funds and other institutional investors own 37.85% of the company's stock.

Butterfly Network Trading Down 5.2%

The stock's 50 day moving average price is $8.02 and its two-hundred day moving average price is $6.21. The firm has a market capitalization of $2.51 billion, a price-to-earnings ratio of -32.58 and a beta of 2.08.

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

Butterfly Network Company Profile

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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