Butterfly Network (NYSE:BFLY) Trading Down 5.7% - Here's What Happened

Key Points

• Butterfly Network shares fell 5.7% to approximately $7.95 in midday trading, while volume dropped 89% below the average session level.
• Analyst sentiment remains mixed: Weiss Ratings reaffirmed a “sell (D-)” rating, while the broader analyst consensus is “Hold” with a $5.56 price target.
• The company exceeded quarterly expectations, reporting a loss of $0.01 per share versus the anticipated $0.04 loss and revenue of $32.61 million versus the $29.16 million consensus estimate.

Butterfly Network, Inc. (NYSE:BFLY - Get Free Report)'s stock price fell 5.7% on Monday . The company traded as low as $7.90 and last traded at $7.9480. 708,765 shares were traded during mid-day trading, a decline of 89% from the average session volume of 6,591,232 shares. The stock had previously closed at $8.43.

Analyst Upgrades and Downgrades

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

Butterfly Network Price Performance

The stock has a 50 day simple moving average of $8.09 and a 200-day simple moving average of $5.69. The firm has a market cap of $2.09 billion, a PE ratio of -27.07 and a beta of 2.09.

Butterfly Network (NYSE:BFLY - Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The company reported ($0.01) earnings per share for the quarter, beating the consensus estimate of ($0.04) by $0.03. The firm 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 predict that Butterfly Network, Inc. will post -0.18 EPS for the current fiscal year.

Insider Activity at Butterfly Network

In related news, CAO Megan Carlson sold 68,852 shares of the business's stock in a transaction that occurred on Friday, July 31st. The shares were sold at an average price of $7.86, for a total value of $541,176.72. Following the completion of the transaction, the chief accounting officer directly owned 425,889 shares in the company, valued at $3,347,487.54. The trade was a 13.92% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Jonathan M. Rothberg sold 659,913 shares of the stock in a transaction on Wednesday, July 22nd. The shares were sold at an average price of $6.47, for a total value of $4,269,637.11. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 4,987,405 shares of company stock valued at $32,975,004 over the last ninety days. Corporate insiders own 21.99% of the company's stock.

Hedge Funds Weigh In On Butterfly Network

Hedge funds have recently bought and sold shares of the business. Corient Private Wealth LP purchased a new stake in shares of Butterfly Network during the 2nd quarter valued at about $156,000. HighTower Advisors LLC boosted its holdings in Butterfly Network by 11.5% in the second quarter. HighTower Advisors LLC now owns 20,430 shares of the company's stock worth $172,000 after purchasing an additional 2,110 shares during the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new stake in Butterfly Network in the second quarter worth approximately $100,000. California State Teachers Retirement System grew its position in Butterfly Network by 18,362.3% in the 2nd quarter. California State Teachers Retirement System now owns 1,957,928 shares of the company's stock worth $16,486,000 after purchasing an additional 1,947,323 shares during the period. Finally, FirstWave Capital Management LLC purchased a new stake in Butterfly Network during the 2nd quarter valued at $1,224,000. Hedge funds and other institutional investors own 37.85% of the company's stock.

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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