Butterfly Network (NYSE:BFLY) Shares Down 5.7% – Should You Sell?

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

Wall Street Analyst Weigh In

Separately, Weiss Ratings reiterated a “sell (d-)” rating on shares of Butterfly Network in a report on Monday, August 3rd. Three analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus price target of $5.56.

Butterfly Network Trading Up 3.0%

The stock has a market capitalization of $2.16 billion, a price-to-earnings ratio of -28.03 and a beta of 2.08. The business has a 50 day simple moving average of $8.11 and a 200-day simple moving average of $5.75.

Butterfly Network (NYSE:BFLY) last posted its quarterly earnings data on Thursday, July 30th. The company reported ($0.01) EPS for the quarter, beating analysts’ consensus estimates 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 net margin of 66.74% and a negative return on equity of 33.99%. Research analysts predict that Butterfly Network, Inc. will post -0.18 EPS for the current year.

Insider Activity

In other Butterfly Network news, Director Jonathan M. Rothberg sold 1,195,857 shares of the stock in a transaction that occurred on Friday, July 17th. The shares were sold at an average price of $6.60, for a total transaction of $7,892,656.20. Following the transaction, the director owned 54,143 shares of the company’s stock, valued at $357,343.80. This trade represents a 95.67% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Megan Carlson sold 68,852 shares of Butterfly Network stock in a transaction on Friday, July 31st. The shares were sold at an average price of $7.86, for a total transaction of $541,176.72. Following the completion of the transaction, the chief accounting officer owned 425,889 shares in the company, valued at approximately $3,347,487.54. This trade represents a 13.92% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 4,987,405 shares of company stock valued at $32,975,004 in the last ninety days. 21.99% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. grew its position in Butterfly Network by 4.3% during the third quarter. Vanguard Group Inc. now owns 11,040,080 shares of the company’s stock valued at $21,307,000 after acquiring an additional 453,258 shares during the period. ARK Investment Management LLC increased its stake in Butterfly Network by 1.6% during the fourth quarter. ARK Investment Management LLC now owns 6,244,427 shares of the company’s stock worth $23,729,000 after acquiring an additional 99,079 shares during the last quarter. Geode Capital Management LLC raised its holdings in shares of Butterfly Network by 1.6% in the 4th quarter. Geode Capital Management LLC now owns 4,679,120 shares of the company’s stock worth $17,785,000 after purchasing an additional 75,243 shares during the period. Bank of America Corp DE raised its holdings in shares of Butterfly Network by 71.0% in the 1st quarter. Bank of America Corp DE now owns 4,165,222 shares of the company’s stock worth $16,827,000 after purchasing an additional 1,728,938 shares during the period. Finally, AWM Investment Company Inc. lifted its stake in shares of Butterfly Network by 750.0% in the 4th quarter. AWM Investment Company Inc. now owns 3,400,000 shares of the company’s stock valued at $12,920,000 after purchasing an additional 3,000,000 shares in the last quarter. Institutional investors and hedge funds 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.