Butterfly Network (NYSE:BFLY) Shares Gap Up - Should You Buy?

Key Points

• Butterfly Network shares gapped higher, opening at $9.69 versus a prior close of $9.15, and last traded around $9.54. The company has a $2.48 billion market capitalization and its shares remain above both the 50-day and 200-day moving averages.
• Analyst sentiment is generally positive, with five Buy ratings, one Hold, and one Sell, producing a “Moderate Buy” consensus. However, the average price target of $8.54 is below the stock’s trading price, while individual targets range from $10 to $15.
• Butterfly Network exceeded quarterly revenue and adjusted earnings expectations, reporting $32.61 million in revenue and a loss of $0.01 per share. The company remains unprofitable, with a negative net margin of 66.74%, and insider activity was mixed as one director bought shares while insiders sold 4.75 million shares in the last quarter.

Butterfly Network, Inc. (NYSE:BFLY - Get Free Report) shares gapped up before the market opened on Tuesday. The stock had previously closed at $9.15, but opened at $9.69. Butterfly Network shares last traded at $9.5440, with a volume of 1,297,979 shares changing hands.

Wall Street Analyst Weigh In

Several equities research analysts recently issued reports on BFLY shares. TD Cowen restated a "buy" rating and issued a $10.00 target price on shares of Butterfly Network in a report on Friday, September 11th. Evercore started coverage on shares of Butterfly Network in a research note on Tuesday. They set an "outperform" rating and a $15.00 target price for the company. Needham & Company LLC assumed coverage on Butterfly Network in a report on Tuesday, September 22nd. They set a "buy" rating and a $10.00 price target on the stock. Finally, Weiss Ratings reissued a "sell (d-)" rating on shares of Butterfly Network in a report on Monday, August 3rd. Five research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $8.54.

Butterfly Network Stock Up 1.8%

The firm has a market capitalization of $2.48 billion, a PE ratio of -32.16 and a beta of 2.08. The stock's fifty day simple moving average is $8.21 and its 200 day simple moving average is $6.37.

Butterfly Network (NYSE:BFLY - Get Free Report) last issued its quarterly 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. 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 analysts' expectations of $29.16 million. On average, analysts predict that Butterfly Network, Inc. will post -0.18 EPS for the current year.

Insider Buying and Selling

In related news, Director Louise Phanstiel bought 115,200 shares of the stock in a transaction that occurred on Friday, August 14th. The shares were bought at an average cost of $8.68 per share, for a total transaction of $999,936.00. Following the completion of the transaction, the director owned 300,461 shares of the company's stock, valued at approximately $2,608,001.48. This trade 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 is accessible through the SEC website. Also, Director Jonathan Rothberg sold 1,195,857 shares of the business's stock in a transaction dated Friday, July 17th. The shares were sold at an average price of $6.60, for a total value of $7,892,656.20. Following the sale, the director directly owned 54,143 shares of the company's stock, valued at $357,343.80. This represents a 95.67% decrease in their position. 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 sold 4,749,549 shares of company stock worth $32,279,460 in the last quarter. Company insiders own 21.99% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. KBC Group NV purchased a new stake in Butterfly Network in the 1st quarter worth approximately $25,000. Sfmg LLC purchased a new position in Butterfly Network during the fourth quarter valued at approximately $39,000. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new position in Butterfly Network during the second quarter valued at approximately $100,000. Redwood Family Wealth LLC bought a new position in shares of Butterfly Network in the fourth quarter worth approximately $46,000. Finally, NewEdge Wealth LLC purchased a new stake in shares of Butterfly Network in the first quarter worth $53,000. 37.85% of the stock is currently owned by institutional investors.

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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