Butterfly Network (NYSE:BFLY) Downgraded to Strong Sell Rating by Zacks Research

Zacks Research downgraded shares of Butterfly Network (NYSE:BFLY) from a hold rating to a strong sell rating in a research note issued to investors on Thursday,Zacks.com reports.

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

Butterfly Network Stock Down 19.0%

Butterfly Network stock traded down $0.89 during mid-day trading on Thursday, hitting $3.78. 14,723,916 shares of the company were exchanged, compared to its average volume of 7,226,941. The business has a fifty day moving average of $3.82 and a 200 day moving average of $2.78. Butterfly Network has a 1-year low of $1.32 and a 1-year high of $5.03. The company has a market capitalization of $955.59 million, a PE ratio of -12.20 and a beta of 2.27.

Butterfly Network (NYSE:BFLY) last issued its earnings results on Thursday, February 26th. The company reported ($0.02) EPS for the quarter, beating the consensus estimate of ($0.04) by $0.02. The company had revenue of $31.51 million for the quarter, compared to the consensus estimate of $26.25 million. Butterfly Network had a negative net margin of 78.95% and a negative return on equity of 32.05%. Research analysts expect that Butterfly Network will post -0.35 earnings per share for the current year.

Insider Buying and Selling

In other Butterfly Network news, EVP John N. Doherty sold 60,182 shares of the firm’s stock in a transaction that occurred on Wednesday, January 7th. The shares were sold at an average price of $3.98, for a total value of $239,524.36. Following the transaction, the executive vice president directly owned 1,234,688 shares of the company’s stock, valued at approximately $4,914,058.24. This trade represents a 4.65% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CTO Victor Ku sold 35,968 shares of the company’s stock in a transaction on Monday, January 5th. The shares were sold at an average price of $3.82, for a total transaction of $137,397.76. Following the sale, the chief technology officer owned 811,962 shares of the company’s stock, valued at $3,101,694.84. The trade was a 4.24% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 4,725,727 shares of company stock worth $16,172,849 over the last three months. 25.18% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Butterfly Network

Several large investors have recently bought and sold shares of BFLY. Wisconsin Wealth Advisors LLC bought a new position in shares of Butterfly Network during the fourth quarter worth $38,000. ExodusPoint Capital Management LP acquired a new stake in Butterfly Network during the 4th quarter worth $38,000. Sfmg LLC acquired a new stake in Butterfly Network during the 4th quarter worth $39,000. Sanctuary Advisors LLC bought a new position in Butterfly Network during the fourth quarter worth about $40,000. Finally, Merit Financial Group LLC acquired a new position in Butterfly Network in the fourth quarter valued at about $45,000. Institutional investors own 37.85% of the company’s stock.

Butterfly Network News Roundup

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

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.