Butterfly Network (NYSE:BFLY) Shares Gap Up - Still a Buy?

Key Points

• Butterfly Network shares jumped 13.1%, opening at $8.85 after closing at $8.14, with the latest trading price near $8.97.
• Analyst sentiment is mixed but leans positive: Needham and TD Cowen assigned Buy ratings with $10 targets, while the six-analyst consensus is “Moderate Buy” with a $7.25 target.
• The company exceeded quarterly revenue and EPS expectations, but remains unprofitable, with a negative net margin and return on equity; insiders also sold 4.74 million shares worth about $32.2 million over the past quarter.

Butterfly Network, Inc. (NYSE:BFLY - Get Free Report)'s stock price gapped up prior to trading on Tuesday . The stock had previously closed at $8.14, but opened at $8.85. Butterfly Network shares last traded at $8.9660, with a volume of 1,425,369 shares traded.

Analysts Set New Price Targets

A number of brokerages recently commented on BFLY. Needham & Company LLC initiated coverage on shares of Butterfly Network in a research note on Tuesday. They set a "buy" rating and a $10.00 target price for the company. Weiss Ratings reiterated a "sell (d-)" rating on shares of Butterfly Network in a research report on Monday, August 3rd. Finally, TD Cowen reissued a "buy" rating and issued a $10.00 target price on shares of Butterfly Network in a research report on Friday, September 11th. Four analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, Butterfly Network currently has an average rating of "Moderate Buy" and a consensus target price of $7.25.

Butterfly Network Stock Up 13.1%

The business's fifty day moving average price is $7.98 and its 200 day moving average price is $6.17. The firm has a market capitalization of $2.45 billion, a PE ratio of -31.96 and a beta of 2.08.

Butterfly Network (NYSE:BFLY - Get Free Report) last released its quarterly earnings results on Thursday, July 30th. The company reported ($0.01) earnings per share (EPS) for the quarter, topping 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 $32.61 million for the quarter, compared to analyst estimates of $29.16 million. On average, analysts anticipate that Butterfly Network, Inc. will post -0.18 earnings per share for the current year.

Insider Activity

In related news, CEO Joseph Devivo sold 68,346 shares of Butterfly Network stock in a transaction on Monday, August 10th. The shares were sold at an average price of $10.01, for a total value of $684,143.46. Following the transaction, the chief executive officer directly owned 7,603,700 shares in the company, valued at $76,113,037. This trade represents a 0.89% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Megan Carlson sold 13,804 shares of the business's stock in a transaction on Friday, September 4th. The shares were sold at an average price of $7.30, for a total transaction of $100,769.20. Following the completion of the transaction, the chief accounting officer directly owned 412,085 shares in the company, valued at $3,008,220.50. This represents a 3.24% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders sold 4,743,569 shares of company stock valued at $32,219,597. 21.99% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Butterfly Network

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Bank of America Corp DE lifted its position 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 valued at $16,827,000 after acquiring an additional 1,728,938 shares during the period. Bank of New York Mellon Corp acquired a new position in Butterfly Network during the second quarter worth $4,878,000. Dimensional Fund Advisors LP boosted its position in 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 purchasing an additional 557,100 shares in the last quarter. Sei Investments Co. grew its holdings in Butterfly Network by 30.6% in the first quarter. Sei Investments Co. now owns 2,298,894 shares of the company's stock valued at $9,288,000 after purchasing an additional 539,171 shares during the last quarter. Finally, Polen Capital Management LLC acquired a new stake in Butterfly Network in the fourth quarter valued at $1,797,000. Institutional investors and hedge funds own 37.85% of the company's stock.

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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