Butterfly Network (NYSE:BFLY) Rating Lowered to “Strong Sell” at Zacks Research

Butterfly Network (NYSE:BFLY) was downgraded by equities researchers at Zacks Research from a “hold” rating to a “strong sell” rating in a note issued to investors on Thursday,Zacks.com reports.

Other equities research analysts have also recently issued research reports about the company. Lake Street Capital increased their price target on Butterfly Network from $4.00 to $5.50 and gave the company a “buy” rating in a research note on Tuesday, January 20th. TD Cowen upped their price objective on shares of Butterfly Network from $4.50 to $6.00 and gave the company a “buy” rating in a report on Friday. Wall Street Zen raised Butterfly Network from a “sell” rating to a “hold” rating in a research note on Sunday, November 23rd. Craig Hallum restated a “buy” rating and set a $5.25 price objective on shares of Butterfly Network in a report on Wednesday, January 21st. Finally, Loop Capital set a $5.00 price target on shares of Butterfly Network in a research report on Wednesday, December 31st. Four research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $5.44.

Butterfly Network Trading Down 19.0%

NYSE BFLY opened at $3.78 on Thursday. The firm’s 50 day simple moving average is $3.82 and its 200 day simple moving average is $2.78. The firm has a market capitalization of $955.59 million, a price-to-earnings ratio of -12.20 and a beta of 2.27. Butterfly Network has a 1 year low of $1.32 and a 1 year high of $5.03.

Butterfly Network (NYSE:BFLY) last announced its quarterly earnings data on Thursday, February 26th. The company reported ($0.02) earnings per share for the quarter, topping the consensus estimate of ($0.04) by $0.02. The business had revenue of $31.51 million during the quarter, compared to the consensus estimate of $26.25 million. Butterfly Network had a negative return on equity of 32.05% and a negative net margin of 78.95%. On average, equities research analysts forecast that Butterfly Network will post -0.35 earnings per share for the current year.

Insider Buying and Selling at Butterfly Network

In other Butterfly Network news, Director Jonathan M. Rothberg sold 769,327 shares of the firm’s stock in a transaction dated Monday, December 8th. The stock was sold at an average price of $3.27, for a total value of $2,515,699.29. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Insiders sold 4,725,727 shares of company stock valued at $16,172,849 in the last three months. 25.18% of the stock is currently owned by insiders.

Institutional Trading of Butterfly Network

Several institutional investors and hedge funds have recently modified their holdings of BFLY. Geode Capital Management LLC raised its position in Butterfly Network by 114.7% during the second quarter. Geode Capital Management LLC now owns 4,339,362 shares of the company’s stock valued at $8,680,000 after purchasing an additional 2,317,882 shares in the last quarter. Perkins Capital Management Inc. grew its stake in shares of Butterfly Network by 213.0% during the third quarter. Perkins Capital Management Inc. now owns 924,280 shares of the company’s stock valued at $1,784,000 after buying an additional 629,020 shares during the last quarter. Acadian Asset Management LLC boosted its holdings in Butterfly Network by 44.7% during the 2nd quarter. Acadian Asset Management LLC now owns 2,313,316 shares of the company’s stock valued at $4,624,000 after acquiring an additional 714,764 shares during the period. DNB Asset Management AS increased its stake in Butterfly Network by 145.0% in the 2nd quarter. DNB Asset Management AS now owns 281,715 shares of the company’s stock worth $563,000 after purchasing an additional 166,749 shares during the period. Finally, Thompson Davis & CO. Inc. purchased a new stake in shares of Butterfly Network during the second quarter valued at approximately $72,000. Hedge funds and other institutional investors own 37.85% of the company’s stock.

Trending Headlines about Butterfly Network

Here are the key news stories impacting Butterfly Network this week:

• Positive Sentiment: TD Cowen raised its price target to $6.00 and reiterated a “buy” rating, signaling material upside vs. the current level and providing broker support for the stock. TD Cowen Raises PT to $6
• Positive Sentiment: Q4 results beat expectations: revenue of $31.5M topped consensus and EPS loss was smaller than forecast, while commentary and press materials highlighted record revenue growth. These results underpin the revenue-outperformance narrative. Q4 Highlights
• Positive Sentiment: Management issued FY2026 revenue guidance ($117M–$121M) above Street consensus (~$108.5M), which is a key near-term growth guidepost for investors watching topline momentum.
• Positive Sentiment: Unusually large options activity—over 10,000 call contracts bought—indicates speculative or institutional bullish positioning that could amplify upside on positive follow-through.
• Positive Sentiment: Industry/strategy write-ups emphasize Butterfly’s semiconductor-based ultrasound plus AI (Compass) as a long-term competitive differentiator if execution scales, supporting a multi-quarter growth thesis. Seeking Alpha: Ultrasound-On-Chip
• Neutral Sentiment: The full Q4 earnings call transcript and BusinessWire release provide more color on margin dynamics and product adoption; useful for confirming management cadence but not immediately market-moving on their own. Earnings Call Transcript Press Release
• Negative Sentiment: Zacks added BFLY to its Rank #5 (Strong Sell) list today, a clear near-term negative that can trigger selling pressure from algorithmic and momentum-driven funds. Zacks Rank #5
• Negative Sentiment: Company remains unprofitable (large negative net margin and negative ROE), which keeps multiples constrained and makes the stock sensitive to any miss in profitability or guidance cadence. Q4 Loss / Margin Detail

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.