Butterfly Network (NYSE:BFLY) Shares Climb 10.6% - Should You Buy?

Key Points

• Butterfly Network shares rose 10.6% to $7.365, with trading volume below the stock’s average. The company has a $1.96 billion market capitalization and a two-hundred-day moving average of $5.97.
• Analyst sentiment is generally positive, with a consensus “Moderate Buy” rating and an $8.75 target price. Price targets from bullish analysts range from $10 to $15, although one firm maintains a sell rating.
• Butterfly Network exceeded quarterly expectations with revenue of $32.61 million and an adjusted loss of $0.01 per share, but it remains unprofitable, with a negative net margin of 66.74%. Insiders have sold $2.97 million of shares over the past 90 days, despite a recent director purchase.

Butterfly Network, Inc. (NYSE:BFLY - Get Free Report)'s share price traded up 10.6% during trading on Tuesday. The company traded as high as $7.40 and last traded at $7.3650. Approximately 2,866,786 shares changed hands during trading, a decline of 55% from the average session volume of 6,338,594 shares. The stock had previously closed at $6.66.

Wall Street Analyst Weigh In

Several equities analysts have weighed in on BFLY shares. TD Cowen reissued a "buy" rating and issued a $10.00 target price on shares of Butterfly Network in a research note on Friday, September 11th. Evercore began coverage on Butterfly Network in a research report on Tuesday, September 29th. They set an "outperform" rating and a $15.00 target price for the company. Needham & Company LLC began coverage on Butterfly Network in a research report on Tuesday, September 22nd. They set a "buy" rating and a $10.00 target price for the company. Weiss Ratings reissued a "sell (d-)" rating on shares of Butterfly Network in a research note on Monday, August 3rd. Finally, Canaccord Genuity Group assumed coverage on shares of Butterfly Network in a report on Monday, October 12th. They set a "buy" rating and a $10.00 price objective for the company. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $8.75.

Butterfly Network Stock Up 10.6%

The company has a fifty day simple moving average of $8.21 and a two-hundred day simple moving average of $5.97. The stock has a market capitalization of $1.96 billion, a P/E ratio of -25.40 and a beta of 2.04.

Butterfly Network (NYSE:BFLY - Get Free Report) last posted its earnings results on Thursday, July 30th. The company reported ($0.01) earnings per share (EPS) for the quarter, beating analysts' consensus estimates 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%. As a group, equities analysts forecast that Butterfly Network, Inc. will post -0.18 earnings per share for the current year.

Insider Transactions at Butterfly Network

In related news, Director Louise Phanstiel purchased 115,200 shares of Butterfly Network stock in a transaction dated Friday, August 14th. The stock was bought at an average price of $8.68 per share, for a total transaction of $999,936.00. Following the completion of the acquisition, the director directly owned 300,461 shares of the company's stock, valued at $2,608,001.48. This represents a 62.18% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Steve Cashman sold 140,112 shares of the 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 directly owned 1,490,295 shares of the company's stock, valued at $10,879,153.50. This represents a 8.59% decrease in their position. 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. In the last 90 days, insiders have sold 354,707 shares of company stock valued at $2,967,211. 21.99% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Butterfly Network

A number of large investors have recently added to or reduced their stakes in the company. Bank of America Corp DE lifted its holdings in shares of Butterfly Network by 71.0% in the first quarter. Bank of America Corp DE now owns 4,165,222 shares of the company's stock valued at $16,827,000 after purchasing an additional 1,728,938 shares in the last quarter. Bank of New York Mellon Corp bought a new position in shares of Butterfly Network during the second quarter worth about $4,878,000. Dimensional Fund Advisors LP grew its holdings in shares of Butterfly Network by 30.9% during the first quarter. Dimensional Fund Advisors LP now owns 2,358,181 shares of the company's stock worth $9,524,000 after buying an additional 557,100 shares in the last quarter. Sei Investments Co. raised its position in Butterfly Network by 30.6% in the 1st quarter. Sei Investments Co. now owns 2,298,894 shares of the company's stock valued at $9,288,000 after buying an additional 539,171 shares during the last quarter. Finally, Swiss National Bank acquired a new stake in Butterfly Network in the 1st quarter valued at approximately $1,621,000. Institutional investors own 37.85% of the company's stock.

About Butterfly Network

Butterfly Network, Inc develops portable medical imaging technology designed to make ultrasound more accessible across hospitals, clinics, emergency-care settings and other care environments. The company's core products use a semiconductor-based ultrasound-on-chip platform, replacing conventional ultrasound systems' large arrays of piezoelectric transducers with a compact, software-driven probe.

Its product portfolio includes the Butterfly iQ, iQ+, and iQ3 handheld ultrasound systems, which connect to compatible mobile devices and provide imaging across multiple clinical applications.

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.