Butterfly Network (NYSE:BFLY) Stock Falls 8% - Time to Sell?

Key Points

• Butterfly Network shares fell about 8% in Friday’s mid-day trading, from a prior close of $6.67 to roughly $6.14; trading volume was 69% below its average.
• The company reported a quarterly loss of $0.01 per share, beating analysts’ estimate of a $0.04 loss, while revenue of $32.6 million exceeded the $28.37 million consensus.
• Analyst sentiment remains broadly positive: MarketBeat cites a “Moderate Buy” consensus and an $8.75 average price target. However, insiders sold a combined 298,109 shares over the past 90 days.

Butterfly Network, Inc. (NYSE:BFLY - Get Free Report) shares dropped 8% during mid-day trading on Friday. The company traded as low as $6.12 and last traded at $6.1350. 1,965,131 shares traded hands during mid-day trading, a decline of 69% from the average session volume of 6,267,210 shares. The stock had previously closed at $6.67.

Analyst Upgrades and Downgrades

Several research firms have recently commented on BFLY. Needham & Company LLC assumed coverage on Butterfly Network in a research note on Tuesday, September 22nd. They set a "buy" rating and a $10.00 target price for the company. Canaccord Genuity Group assumed coverage on shares of Butterfly Network in a report on Monday, October 12th. They issued a "buy" rating and a $10.00 price target on the stock. TD Cowen reiterated a "buy" rating and set 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 Friday, October 30th. Finally, Evercore started coverage on shares of Butterfly Network in a report on Tuesday, September 29th. They set an "outperform" rating and a $15.00 price objective for the company. 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 issued a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $8.75.

Butterfly Network Stock Down 8.6%

The company has a 50 day simple moving average of $7.70 and a 200-day simple moving average of $6.13. The stock has a market cap of $1.63 billion, a price-to-earnings ratio of -28.97 and a beta of 2.16.

Butterfly Network (NYSE:BFLY - Get Free Report) last issued its earnings results on Thursday, October 29th. The company reported ($0.01) EPS for the quarter, topping the consensus estimate of ($0.04) by $0.03. Butterfly Network had a negative return on equity of 21.60% and a negative net margin of 43.56%. The company had revenue of $32.60 million during the quarter, compared to analyst estimates of $28.37 million. On average, equities research analysts expect that Butterfly Network, Inc. will post -0.17 EPS for the current fiscal year.

Insider Buying and Selling at Butterfly Network

In other Butterfly Network news, CAO Megan Carlson sold 10,114 shares of the stock in a transaction on Friday, October 2nd. The shares were sold at an average price of $8.74, for a total transaction of $88,396.36. Following the sale, the chief accounting officer directly owned 401,971 shares of the company's stock, valued at approximately $3,513,226.54. This represents a 2.45% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Joseph Devivo sold 90,600 shares of the firm's stock in a transaction dated Friday, October 30th. The stock was sold at an average price of $7.01, for a total transaction of $635,106.00. Following the completion of the transaction, the chief executive officer owned 7,221,330 shares in the company, valued at approximately $50,621,523.30. The trade was a 1.24% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 298,109 shares of company stock worth $2,279,497 over the last 90 days. Insiders own 21.99% of the company's stock.

Institutional Investors Weigh In On Butterfly Network

Several institutional investors and hedge funds have recently bought and sold shares of the business. Bleakley Financial Group LLC acquired a new position in shares of Butterfly Network during the third quarter valued at $2,663,000. State Street Corp grew its position in shares of Butterfly Network by 2.7% during the third quarter. State Street Corp now owns 5,915,904 shares of the company's stock worth $53,006,000 after acquiring an additional 153,232 shares during the last quarter. Private Advisor Group LLC increased its holdings in shares of Butterfly Network by 776.9% in the 3rd quarter. Private Advisor Group LLC now owns 112,505 shares of the company's stock worth $1,008,000 after acquiring an additional 99,675 shares during the period. Harbour Investments Inc. increased its holdings in shares of Butterfly Network by 24.3% in the 3rd quarter. Harbour Investments Inc. now owns 51,062 shares of the company's stock worth $458,000 after acquiring an additional 9,983 shares during the period. Finally, Russell Investments Group Ltd. lifted its position in Butterfly Network by 37.2% in the 3rd quarter. Russell Investments Group Ltd. now owns 718,175 shares of the company's stock valued at $6,435,000 after purchasing an additional 194,657 shares during the last quarter. Institutional investors and hedge funds own 37.85% of the company's stock.

About Butterfly Network

Butterfly Network develops portable ultrasound technology for healthcare professionals. Its handheld devices use the company's semiconductor-based Ultrasound-on-Chip technology to produce ultrasound images and connect with compatible mobile devices, offering an alternative to larger, cart-based systems. The company's products include the Butterfly iQ line of handheld ultrasound devices, along with software and cloud-based tools for viewing, managing and sharing medical images. Its offerings are designed for use across a range of clinical settings and applications.

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