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

Key Points

• Butterfly Network shares opened sharply lower, falling from a prior close of $7.81 to $7.05 before trading near $7.84; the company has a $2.06 billion market capitalization.
• Analyst sentiment remains broadly positive, with a consensus rating of “Moderate Buy” and an average price target of $8.75, although ratings range from “Sell” to “Outperform.”
• Butterfly Network beat quarterly expectations, reporting an adjusted loss of $0.01 per share versus the projected $0.04 loss and revenue of $32.6 million versus the $28.37 million estimate; insiders, however, sold more shares than they bought over the past 90 days.

Butterfly Network, Inc. (NYSE:BFLY - Get Free Report) gapped down prior to trading on Thursday. The stock had previously closed at $7.81, but opened at $7.05. Butterfly Network shares last traded at $7.8370, with a volume of 1,279,709 shares changing hands.

Analyst Ratings Changes

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

Butterfly Network Trading Down 1.0%

The company has a market cap of $2.06 billion, a price-to-earnings ratio of -26.60 and a beta of 2.04. The stock's 50 day moving average price is $8.15 and its 200 day moving average price is $6.01.

Butterfly Network (NYSE:BFLY - Get Free Report) last posted its quarterly earnings results on Thursday, October 29th. The company reported ($0.01) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.04) by $0.03. Butterfly Network had a negative return on equity of 33.99% and a negative net margin of 66.74%. The firm had revenue of $32.60 million during the quarter, compared to the consensus estimate of $28.37 million. On average, equities analysts expect that Butterfly Network, Inc. will post -0.18 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, CAO Megan Carlson sold 68,852 shares of the firm's stock in a transaction on Friday, July 31st. The stock was sold at an average price of $7.86, for a total transaction of $541,176.72. Following the transaction, the chief accounting officer directly owned 425,889 shares of the company's stock, valued at approximately $3,347,487.54. This trade represents a 13.92% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Louise Phanstiel bought 115,200 shares of the company's stock in a transaction that occurred on Friday, August 14th. The shares were purchased at an average cost of $8.68 per share, for a total transaction of $999,936.00. Following the acquisition, the director 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 disclosure for this purchase is available in the SEC filing. Insiders sold a total of 354,707 shares of company stock valued at $2,967,211 over the last 90 days. 21.99% of the stock is owned by corporate insiders.

Institutional Trading of Butterfly Network

Several institutional investors have recently modified their holdings of the company. V Square Quantitative Management LLC acquired a new position in shares of Butterfly Network in the 3rd quarter valued at $42,000. China Universal Asset Management Co. Ltd. purchased a new position in Butterfly Network in the 3rd quarter worth about $46,000. KBC Group NV acquired a new stake in Butterfly Network during the 1st quarter worth about $25,000. Sterling Capital Management LLC raised its holdings in Butterfly Network by 880.0% during the 3rd quarter. Sterling Capital Management LLC now owns 7,242 shares of the company's stock worth $65,000 after buying an additional 6,503 shares during the period. Finally, Benchmark Financial Wealth Advisors LLC purchased a new stake in Butterfly Network during the third quarter valued at about $94,000. Institutional investors and hedge funds 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.

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