Butterfly Network (NYSE:BFLY) Shares Up 6.6% - Time to Buy?

Key Points

• Butterfly Network shares rose 6.6% to $8.56, near the analyst consensus price target of $8.54, although trading volume was 87% below the average session volume.
• Analyst sentiment is moderately bullish, with a consensus “Moderate Buy” rating; price targets include $10 from TD Cowen and Needham, and $15 from Evercore.
• The company exceeded quarterly earnings and revenue expectations, but remains unprofitable, with a negative net margin and projected full-year loss. Insiders have also sold substantially more shares than they have purchased recently.

Butterfly Network, Inc. (NYSE:BFLY - Get Free Report)'s stock price traded up 6.6% on Friday. The stock traded as high as $8.64 and last traded at $8.5560. Approximately 821,958 shares traded hands during mid-day trading, a decline of 87% from the average session volume of 6,461,176 shares. The stock had previously closed at $8.03.

Wall Street Analysts Forecast Growth

A number of equities analysts recently issued reports on the stock. Evercore began coverage on shares of Butterfly Network in a research report on Tuesday, September 29th. They set an "outperform" rating and a $15.00 price objective for the company. TD Cowen restated a "buy" rating and issued a $10.00 price objective on shares of Butterfly Network in a research note on Friday, September 11th. Weiss Ratings reissued a "sell (d-)" rating on shares of Butterfly Network in a report on Monday, August 3rd. Finally, Needham & Company LLC initiated coverage on shares of Butterfly Network in a research report on Tuesday, September 22nd. They set a "buy" rating and a $10.00 price target for the company. One analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $8.54.

Butterfly Network Stock Performance

The stock has a fifty day moving average price of $8.48 and a 200-day moving average price of $6.64. The firm has a market capitalization of $2.25 billion, a PE ratio of -29.06 and a beta of 2.04.

Butterfly Network (NYSE:BFLY - Get Free Report) last released its 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. The company had revenue of $32.61 million for the quarter, compared to the consensus estimate of $29.16 million. Butterfly Network had a negative net margin of 66.74% and a negative return on equity of 33.99%. Research 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, Director Jonathan Rothberg sold 1,195,857 shares of Butterfly Network 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 owned 54,143 shares in the company, valued at $357,343.80. This trade represents a 95.67% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Louise Phanstiel acquired 115,200 shares of the business's stock in a transaction that occurred on Friday, August 14th. The shares were acquired at an average cost of $8.68 per share, with a total value of $999,936.00. Following the completion of the transaction, the director directly owned 300,461 shares in the company, valued at approximately $2,608,001.48. The trade was a 62.18% increase in their position. The SEC filing for this purchase provides additional information. Insiders have sold a total of 4,458,547 shares of company stock worth $30,071,305 in the last ninety days. 21.99% of the stock is owned by corporate insiders.

Institutional Trading of Butterfly Network

Institutional investors have recently bought and sold shares of the company. KBC Group NV acquired a new position in Butterfly Network in the 1st quarter valued at $25,000. Redwood Family Wealth LLC bought a new position in shares of Butterfly Network in the 4th quarter worth about $46,000. NewEdge Wealth LLC bought a new stake in shares of Butterfly Network during the first quarter valued at approximately $53,000. Principal Financial Group Inc. lifted its holdings in Butterfly Network by 24.0% in the first quarter. Principal Financial Group Inc. now owns 14,247 shares of the company's stock worth $58,000 after purchasing an additional 2,753 shares during the period. Finally, Rockefeller Capital Management L.P. grew its position in Butterfly Network by 1,545.6% in the 4th quarter. Rockefeller Capital Management L.P. now owns 16,456 shares of the company's stock valued at $63,000 after buying an additional 15,456 shares in the last quarter. 37.85% of the stock is currently owned by hedge funds and other institutional investors.

Butterfly Network Company Profile

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.

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