Butterfly Network (NYSE:BFLY) Shares Gap Up Following Better-Than-Expected Earnings

Butterfly Network, Inc. (NYSE:BFLY) shares gapped up prior to trading on Thursday following a better than expected earnings announcement. The stock had previously closed at $3.10, but opened at $4.01. Butterfly Network shares last traded at $4.7310, with a volume of 23,249,066 shares.

The company reported ($0.02) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.04) by $0.02. Butterfly Network had a negative return on equity of 37.80% and a negative net margin of 90.31%.The firm had revenue of $31.51 million during the quarter, compared to analysts’ expectations of $26.25 million.

Analyst Upgrades and Downgrades

BFLY has been the subject of a number of recent analyst reports. Loop Capital set a $5.00 price target on shares of Butterfly Network in a report on Wednesday, December 31st. Craig Hallum reaffirmed a “buy” rating and issued a $5.25 target price on shares of Butterfly Network in a report on Wednesday, January 21st. Wall Street Zen upgraded Butterfly Network from a “sell” rating to a “hold” rating in a report on Sunday, November 23rd. Finally, Lake Street Capital increased their price objective on Butterfly Network from $4.00 to $5.50 and gave the company a “buy” rating in a research report on Tuesday, January 20th. Three analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Butterfly Network presently has an average rating of “Hold” and an average target price of $5.25.

Insiders Place Their Bets

In other news, CTO Victor Ku sold 35,968 shares of Butterfly Network stock in a transaction that occurred on Monday, January 5th. The stock was 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 approximately $3,101,694.84. This trade represents a 4.24% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP John N. Doherty sold 60,182 shares of the company’s stock in a transaction 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 completion of the transaction, the executive vice president owned 1,234,688 shares of the company’s stock, valued at $4,914,058.24. The trade was a 4.65% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 4,858,297 shares of company stock worth $16,581,164. 25.18% of the stock is currently owned by company insiders.

Institutional Trading of Butterfly Network

A number of institutional investors and hedge funds have recently added to or reduced their stakes in BFLY. Vanguard Group Inc. grew its stake in shares of Butterfly Network by 4.3% in the 3rd quarter. Vanguard Group Inc. now owns 11,040,080 shares of the company’s stock valued at $21,307,000 after purchasing an additional 453,258 shares during the period. ARK Investment Management LLC boosted its stake in Butterfly Network by 1.6% in the 4th quarter. ARK Investment Management LLC now owns 6,244,427 shares of the company’s stock valued at $23,729,000 after buying an additional 99,079 shares in the last quarter. Hood River Capital Management LLC boosted its stake in Butterfly Network by 3.6% in the 2nd quarter. Hood River Capital Management LLC now owns 5,127,383 shares of the company’s stock valued at $10,255,000 after buying an additional 176,515 shares in the last quarter. Geode Capital Management LLC grew its position in Butterfly Network by 1.6% in the fourth quarter. Geode Capital Management LLC now owns 4,679,120 shares of the company’s stock valued at $17,785,000 after acquiring an additional 75,243 shares during the period. Finally, AWM Investment Company Inc. raised its stake in Butterfly Network by 750.0% during the fourth quarter. AWM Investment Company Inc. now owns 3,400,000 shares of the company’s stock worth $12,920,000 after acquiring an additional 3,000,000 shares in the last quarter. Institutional investors own 37.85% of the company’s stock.

Butterfly Network Price Performance

The stock has a market capitalization of $1.18 billion, a price-to-earnings ratio of -14.24 and a beta of 2.27. The firm has a 50 day simple moving average of $3.79 and a 200-day simple moving average of $2.75.

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.