Butterfly Network (NYSE:BFLY) Shares Up 6.4% - Here's Why

Key Points

• Butterfly Network shares rose 6.4% to $9.523 during Tuesday trading, though volume was 93% below the average daily level.
• Analyst sentiment remains cautious: the consensus rating is “Hold” with a $5.56 target price, while Weiss Ratings reaffirmed its “sell (D-)” rating.
• The company exceeded quarterly expectations, reporting adjusted EPS of $(0.01) versus an expected $(0.04) loss and revenue of $32.61 million versus the $29.16 million consensus estimate. Meanwhile, insiders sold nearly 5 million shares worth approximately $33 million over the past 90 days.

Butterfly Network, Inc. (NYSE:BFLY - Get Free Report) was up 6.4% during trading on Tuesday . The stock traded as high as $9.31 and last traded at $9.5230. Approximately 455,828 shares were traded during trading, a decline of 93% from the average daily volume of 6,653,554 shares. The stock had previously closed at $8.95.

Analysts Set New Price Targets

Separately, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Butterfly Network in a research report on Monday, August 3rd. Three investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus target price of $5.56.

Butterfly Network Stock Up 3.4%

The stock has a market cap of $2.46 billion, a price-to-earnings ratio of -31.81 and a beta of 2.09. The business's 50 day simple moving average is $7.97 and its 200 day simple moving average is $5.54.

Butterfly Network (NYSE:BFLY - Get Free Report) last released 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 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. Equities research analysts forecast that Butterfly Network, Inc. will post -0.18 earnings per share for the current fiscal year.

Insider Buying and Selling at Butterfly Network

In other Butterfly Network news, CAO Megan Carlson sold 68,852 shares of Butterfly Network stock in a transaction on Friday, July 31st. The shares were sold at an average price of $7.86, for a total transaction of $541,176.72. Following the completion of the transaction, the chief accounting officer directly owned 425,889 shares of the company's stock, valued at $3,347,487.54. The trade was a 13.92% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Jonathan M. Rothberg sold 659,913 shares of the company's stock in a transaction on Wednesday, July 22nd. The shares were sold at an average price of $6.47, for a total transaction of $4,269,637.11. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 4,987,405 shares of company stock worth $32,975,004. 21.99% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the stock. KBC Group NV acquired a new stake in Butterfly Network during the first quarter worth approximately $25,000. ExodusPoint Capital Management LP acquired a new position in shares of Butterfly Network in the fourth quarter valued at approximately $38,000. Sfmg LLC bought a new position in shares of Butterfly Network during the fourth quarter worth approximately $39,000. Sanctuary Advisors LLC bought a new position in shares of Butterfly Network during the fourth quarter worth approximately $40,000. Finally, Merit Financial Group LLC acquired a new stake in Butterfly Network during the 4th quarter worth approximately $45,000. 37.85% of the stock is owned by institutional investors.

Butterfly Network Company Profile

Butterfly Network, Inc is a medical technology company focused on democratizing access to diagnostic imaging through its proprietary ultrasound-on-chip platform. The company's flagship device, the Butterfly iQ, leverages semiconductor technology to deliver whole-body ultrasound imaging in a handheld form factor. This portable system connects to a compatible smart device, enabling point-of-care scanning across a variety of clinical settings.

Beyond its hardware offering, Butterfly Network provides a cloud-based software suite that supports image storage, analysis and remote collaboration.

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