Butterfly Network (NYSE:BFLY) Sets New 12-Month High - Should You Buy?

Key Points

• Butterfly Network shares reached a new 52-week high of $10.21 and were last trading at $9.38, supported by strong upward momentum in the stock.
• Analyst sentiment is generally positive, with a consensus “Moderate Buy” rating and an average price target of $8.54; however, targets range from $10 to $15 and one firm maintains a sell rating.
• The company exceeded quarterly earnings and revenue expectations, but remains unprofitable, while insiders have sold 4.4 million shares worth approximately $29.6 million over the past quarter.

Butterfly Network, Inc. (NYSE:BFLY - Get Free Report)'s stock price reached a new 52-week high during mid-day trading on Tuesday. The company traded as high as $10.21 and last traded at $9.38, with a volume of 1041894 shares trading hands. The stock had previously closed at $9.38.

Wall Street Analyst Weigh In

A number of research firms have issued reports on BFLY. TD Cowen reaffirmed a "buy" rating and issued a $10.00 price target on shares of Butterfly Network in a research report on Friday, September 11th. Needham & Company LLC initiated coverage on Butterfly Network in a research report on Tuesday, September 22nd. They set a "buy" rating and a $10.00 price objective for the company. Weiss Ratings restated a "sell (d-)" rating on shares of Butterfly Network in a research note on Monday, August 3rd. Finally, Evercore began coverage on shares of Butterfly Network in a report on Tuesday, September 29th. They issued an "outperform" rating and a $15.00 target price on the stock. One analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, one has given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, Butterfly Network presently has a consensus rating of "Moderate Buy" and an average price target of $8.54.

Butterfly Network Stock Performance

The firm has a market capitalization of $2.31 billion, a price-to-earnings ratio of -29.77 and a beta of 2.04. The company has a 50-day moving average price of $8.44 and a 200-day moving average price of $6.55.

Butterfly Network (NYSE:BFLY - Get Free Report) last issued 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. The business had revenue of $32.61 million for the quarter, compared to analyst estimates 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, research analysts expect that Butterfly Network, Inc. will post -0.18 earnings per share for the current fiscal year.

Insider Activity at Butterfly Network

In related news, CEO Joseph Devivo sold 3,169 shares of the stock in a transaction on Wednesday, September 23rd. The shares were sold at an average price of $10.02, for a total value of $31,753.38. Following the transaction, the chief executive officer directly owned 7,347,720 shares of the company's stock, valued at $73,624,154.40. This trade represents a 0.04% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Steve Cashman sold 140,112 shares of Butterfly Network stock in a transaction on Friday, September 4th. The stock was sold at an average price of $7.30, for a total transaction of $1,022,817.60. Following the sale, the insider owned 1,490,295 shares in the company, valued at $10,879,153.50. This represents a 8.59% 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 4,412,643 shares of company stock valued at $29,624,293 in the last quarter. Company insiders own 21.99% of the company's stock.

Hedge Funds Weigh In On Butterfly Network

Several hedge funds have recently made changes to their positions in the company. State Street Corp increased its position in shares of Butterfly Network by 4.0% during the second quarter. State Street Corp now owns 5,762,672 shares of the company's stock worth $48,522,000 after purchasing an additional 223,012 shares in the last quarter. The Manufacturers Life Insurance Company lifted its holdings in shares of Butterfly Network by 4.0% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 55,326 shares of the company's stock valued at $466,000 after purchasing an additional 2,125 shares during the last quarter. Engineers Gate Manager LP acquired a new stake in shares of Butterfly Network in the 2nd quarter valued at about $595,000. Squarepoint Ops LLC boosted its position in shares of Butterfly Network by 27.0% in the 2nd quarter. Squarepoint Ops LLC now owns 450,401 shares of the company's stock valued at $3,792,000 after purchasing an additional 95,850 shares during the period. Finally, Corient Private Wealth LP purchased a new position in Butterfly Network during the 2nd quarter worth approximately $156,000. Hedge funds and other institutional investors own 37.85% of the company's stock.

About Butterfly Network

Butterfly Network, Inc develops portable ultrasound technology designed to make medical imaging more accessible across a range of clinical settings. The company's systems use semiconductor-based ultrasound technology integrated into compact, handheld probes that connect with compatible mobile devices, allowing clinicians to capture and review images at the point of care.

Its product portfolio includes the Butterfly iQ family of handheld ultrasound devices, including the iQ+ and iQ3 systems, along with cloud-based software and artificial-intelligence tools for image management, clinical workflows, education and collaboration.

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