Shares of Butterfly Network, Inc. (NYSE:BFLY) rose by 4.3% during trading on Tuesday, reaching a high of $3.96 before closing at $3.9650. In total, approximately 2,353,732 shares exchanged hands, marking a significant decline of 49% from the average daily volume of 4,611,309 shares. The previous closing price was $3.80, indicating renewed interest from investors.
Analysts Weigh In on Future Prospects
Recent reports from multiple research firms have influenced the stock’s performance. On November 23, 2023, Wall Street Zen upgraded Butterfly Network from a “sell” rating to a “hold” rating. Conversely, Weiss Ratings maintained a “sell (d-)” rating as of October 8, 2023. Currently, three analysts have issued a Buy rating, one a Hold rating, and one a Sell rating for the stock. Data from MarketBeat indicates an average rating of “Hold” with a consensus price target of $3.00.
The company recently reported its quarterly earnings, revealing a loss of ($0.04) per share for the quarter ending October 31, 2023. This result beat analysts’ consensus estimates of ($0.06) by $0.02. Despite these numbers, Butterfly Network continues to grapple with a negative net margin of 90.31% and a negative return on equity of 37.80%. The revenue for the quarter was $21.49 million, slightly exceeding the consensus estimate of $21.23 million. Analysts anticipate that the company will report an earnings per share of ($0.35) for the current year.
Insider Trading and Institutional Investments
In related news, Jonathan M. Rothberg, a director at Butterfly Network, sold 1,110,579 shares on November 24, 2023, at an average price of $3.15, amounting to a total value of $3,498,323.85. Following this transaction, Rothberg retained 769,814 shares valued at $2,424,914.10, representing a 59.06% reduction in his position. This transaction was disclosed in a filing with the Securities and Exchange Commission (SEC), which can be accessed on their website.
Over the past quarter, insiders sold a total of 5,999,989 shares valued at $18,959,864. Insiders currently hold 25.18% of the company’s stock, indicating a significant level of ownership.
Hedge funds and institutional investors have also been active in the company’s shares. In the second quarter, Ashton Thomas Private Wealth LLC acquired a new stake valued at $25,000. Other notable transactions include Ameriprise Financial Inc., which invested a similar amount in the third quarter, and CTC Alternative Strategies Ltd., which purchased a stake worth approximately $29,000. Overall, institutional investors and hedge funds collectively own 37.85% of Butterfly Network’s shares.
Butterfly Network, Inc. focuses on revolutionizing diagnostic imaging through its innovative ultrasound-on-chip platform. The flagship product, the Butterfly iQ, utilizes semiconductor technology to provide comprehensive ultrasound imaging in a portable format. This device connects to compatible smart devices, facilitating point-of-care scanning across various clinical environments. Additionally, the company offers a cloud-based software suite for image storage, analysis, and remote collaboration.
As the market continues to respond to recent developments, stakeholders will be keenly watching how these changes impact Butterfly Network’s future trajectory.
