Butterfly Network (NYSE:BFLY) Trading Down 5.3% - Here's What Happened

Key Points

• Butterfly Network shares fell 5.3% to about $7.39 in midday trading, on volume sharply below the stock’s average daily activity.
• Analyst sentiment remains mixed: the consensus rating is “Hold” with a $6.56 price target, despite TD Cowen maintaining a “Buy” rating and $10 target.
• The company exceeded quarterly expectations, reporting a narrower-than-expected loss and revenue of $32.61 million, but it remains unprofitable; insiders have also sold 4.74 million shares over the past quarter, while institutional ownership stands at 37.85%.

Shares of Butterfly Network, Inc. (NYSE:BFLY - Get Free Report) traded down 5.3% during mid-day trading on Wednesday . The company traded as low as $7.35 and last traded at $7.3860. 440,196 shares changed hands during trading, a decline of 93% from the average session volume of 6,451,051 shares. The stock had previously closed at $7.80.

Analysts Set New Price Targets

Several equities research analysts have recently commented on BFLY shares. Weiss Ratings restated a "sell (d-)" rating on shares of Butterfly Network in a report on Monday, August 3rd. TD Cowen reiterated a "buy" rating and issued a $10.00 price objective on shares of Butterfly Network in a research note on Friday, September 11th. Three equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of $6.56.

Butterfly Network Price Performance

The stock has a market capitalization of $1.99 billion, a P/E ratio of -25.68 and a beta of 2.08. The company has a 50 day simple moving average of $7.98 and a 200-day simple moving average of $6.06.

Butterfly Network (NYSE:BFLY - Get Free Report) last posted 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. The company had revenue of $32.61 million during the quarter, compared to the consensus estimate of $29.16 million. Butterfly Network had a negative return on equity of 33.99% and a negative net margin of 66.74%. As a group, equities analysts forecast that Butterfly Network, Inc. will post -0.18 earnings per share for the current fiscal year.

Insider Activity

In related news, Director Louise Phanstiel purchased 115,200 shares of the business's stock in a transaction dated Friday, August 14th. The stock was purchased at an average cost of $8.68 per share, with a total value of $999,936.00. Following the completion of the acquisition, the director directly owned 300,461 shares of the company's stock, valued at approximately $2,608,001.48. The trade was a 62.18% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider Steve Cashman sold 140,112 shares of the firm's stock in a transaction dated Friday, September 4th. The stock was sold at an average price of $7.30, for a total value of $1,022,817.60. Following the completion of the transaction, the insider owned 1,490,295 shares of the company's stock, valued at approximately $10,879,153.50. This represents a 8.59% decrease in their position. 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 have sold 4,743,569 shares of company stock valued at $32,219,597. 21.99% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Butterfly Network

A number of institutional investors and hedge funds have recently bought and sold shares of BFLY. The Manufacturers Life Insurance Company boosted its stake in Butterfly Network by 4.0% in the second quarter. The Manufacturers Life Insurance Company now owns 55,326 shares of the company's stock worth $466,000 after buying an additional 2,125 shares in the last quarter. Engineers Gate Manager LP bought a new stake in shares of Butterfly Network during the second quarter valued at approximately $595,000. Squarepoint Ops LLC boosted its holdings in shares of Butterfly Network by 27.0% during the 2nd quarter. Squarepoint Ops LLC now owns 450,401 shares of the company's stock valued at $3,792,000 after buying an additional 95,850 shares in the last quarter. Corient Private Wealth LP bought a new stake in shares of Butterfly Network during the 2nd quarter valued at $156,000. Finally, HighTower Advisors LLC lifted its position in Butterfly Network by 11.5% during the 2nd quarter. HighTower Advisors LLC now owns 20,430 shares of the company's stock valued at $172,000 after acquiring an additional 2,110 shares during the period. 37.85% of the stock is owned by hedge funds and other 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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