Traders Purchase High Volume of Call Options on Butterfly Network (NYSE:BFLY)

Key Points

• Traders bought an unusually large number of calls on Butterfly Network — 3,652 call options were purchased on Thursday, about 21% above the average daily call volume, signaling heightened bullish options interest.
• Analyst sentiment is mixed: three Buy, two Hold and one Sell give an overall average rating of Hold with an average target price of $5.56, and several firms recently raised targets into the mid-$5s.
• Shares traded down to $4.83 on heavy volume (~6.04M) after Butterfly reported better-than-expected quarterly results — ($0.02) EPS vs. ($0.04) estimate and revenue of $31.51M — though the company remains unprofitable with a ~79% negative net margin.

Butterfly Network, Inc. (NYSE:BFLY - Get Free Report) saw unusually large options trading activity on Thursday. Stock investors purchased 3,652 call options on the company. This represents an increase of approximately 21% compared to the average daily volume of 3,010 call options.

Wall Street Analyst Weigh In

A number of analysts have weighed in on BFLY shares. Lake Street Capital raised their price objective on shares of Butterfly Network from $4.00 to $5.50 and gave the stock a "buy" rating in a report on Tuesday, January 20th. Zacks Research raised shares of Butterfly Network from a "strong sell" rating to a "hold" rating in a report on Friday, March 27th. Craig Hallum reissued a "buy" rating and set a $5.25 price objective on shares of Butterfly Network in a report on Wednesday, January 21st. TD Cowen raised their price objective on shares of Butterfly Network from $4.50 to $6.00 and gave the stock a "buy" rating in a report on Friday, February 27th. Finally, Loop Capital set a $5.50 price objective on shares of Butterfly Network in a report on Monday, March 2nd. Three research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and an average target price of $5.56.

Butterfly Network Trading Down 1.9%

Shares of Butterfly Network stock traded down $0.10 during trading on Thursday, reaching $4.83. The company's stock had a trading volume of 6,039,046 shares, compared to its average volume of 5,822,838. The company has a 50-day moving average price of $4.19 and a two-hundred day moving average price of $3.55. The firm has a market cap of $1.23 billion, a PE ratio of -15.63 and a beta of 2.21. Butterfly Network has a fifty-two week low of $1.32 and a fifty-two week high of $5.72.

Butterfly Network (NYSE:BFLY - Get Free Report) last announced its earnings results on Thursday, February 26th. The company reported ($0.02) EPS for the quarter, beating analysts' consensus estimates of ($0.04) by $0.02. Butterfly Network had a negative net margin of 78.95% and a negative return on equity of 33.13%. The business had revenue of $31.51 million for the quarter, compared to analysts' expectations of $26.25 million. On average, analysts predict that Butterfly Network will post -0.19 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Butterfly Network

Hedge funds and other institutional investors have recently bought and sold shares of the company. Ameriprise Financial Inc. purchased a new position in Butterfly Network in the 3rd quarter valued at $25,000. Y Intercept Hong Kong Ltd purchased a new position in Butterfly Network in the 3rd quarter valued at $32,000. BNP Paribas Financial Markets grew its position in Butterfly Network by 707.2% in the 2nd quarter. BNP Paribas Financial Markets now owns 16,258 shares of the company's stock valued at $33,000 after buying an additional 14,244 shares during the last quarter. Wisconsin Wealth Advisors LLC purchased a new position in Butterfly Network in the 4th quarter valued at $38,000. Finally, ExodusPoint Capital Management LP purchased a new position in Butterfly Network in the 4th quarter valued at $38,000. 37.85% of the stock is currently owned by hedge funds and other institutional investors.

About Butterfly Network

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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