Butterfly Network (NYSE:BFLY) Shares Down 5.9% - Here's What Happened

Key Points

• Butterfly Network shares fell 5.9% to about $8.05 in midday trading, on volume that was 96% below the average daily level.
• Analyst sentiment remains broadly positive, with a “Moderate Buy” consensus and an average price target of $8.75; targets ranged from $10 to $15, although Weiss Ratings maintained a sell rating.
• The company exceeded quarterly expectations, reporting an adjusted loss of $0.01 per share versus a projected $0.04 loss and revenue of $32.61 million versus $29.16 million expected. However, Butterfly Network remains unprofitable, with a negative net margin of 66.74%, while insiders sold more than 4.45 million shares over the past quarter.

Butterfly Network, Inc. (NYSE:BFLY - Get Free Report) fell 5.9% during mid-day trading on Tuesday. The stock traded as low as $8.31 and last traded at $8.0450. Approximately 284,299 shares were traded during mid-day trading, a decline of 96% from the average daily volume of 6,434,512 shares. The stock had previously closed at $8.55.

Analyst Ratings Changes

A number of research analysts have recently weighed in on BFLY shares. TD Cowen reissued a "buy" rating and set a $10.00 price objective on shares of Butterfly Network in a research note 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. Canaccord Genuity Group initiated coverage on Butterfly Network in a research note on Monday. They issued a "buy" rating and a $10.00 target price on the stock. Weiss Ratings reiterated a "sell (d-)" rating on shares of Butterfly Network in a report on Monday, August 3rd. Finally, Evercore assumed coverage on Butterfly Network in a report on Tuesday, September 29th. They set an "outperform" rating and a $15.00 target price on the stock. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, Butterfly Network currently has an average rating of "Moderate Buy" and an average target price of $8.75.

Butterfly Network Price Performance

The business's 50-day moving average price is $8.51 and its two-hundred day moving average price is $6.70. The firm has a market cap of $2.18 billion, a price-to-earnings ratio of -28.19 and a beta of 2.04.

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

Insider Activity at Butterfly Network

In other Butterfly Network news, Director Jonathan Rothberg sold 1,195,857 shares of the stock in a transaction on Friday, July 17th. The stock was sold at an average price of $6.60, for a total transaction of $7,892,656.20. Following the transaction, the director owned 54,143 shares of the company's stock, valued at $357,343.80. This represents a 95.67% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Steve Cashman sold 140,112 shares of the firm's stock in a transaction on Friday, September 4th. The stock was sold at an average price of $7.30, for a total value 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 trade 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. Over the last quarter, insiders have sold 4,458,547 shares of company stock worth $30,071,305. Company insiders own 21.99% of the company's stock.

Institutional Trading of Butterfly Network

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Janus Henderson Group PLC purchased a new stake in shares of Butterfly Network during the 1st quarter valued at $446,000. Bank of America Corp DE increased its holdings in shares of Butterfly Network by 71.0% during the 1st quarter. Bank of America Corp DE now owns 4,165,222 shares of the company's stock worth $16,827,000 after buying an additional 1,728,938 shares during the last quarter. Dimensional Fund Advisors LP increased its holdings in shares of Butterfly Network by 30.9% during the 1st 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 during the last quarter. Lotus Technology Management LP purchased a new position in shares of Butterfly Network in the 2nd quarter worth $1,378,000. Finally, Sei Investments Co. raised its position in shares of Butterfly Network by 30.6% in the 1st quarter. Sei Investments Co. now owns 2,298,894 shares of the company's stock worth $9,288,000 after buying an additional 539,171 shares during the period. 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.

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.