Butterfly Network (NYSE:BFLY) Cut to Strong Sell at Zacks Research

Zacks Research cut shares of Butterfly Network (NYSE:BFLY) from a hold rating to a strong sell rating in a research report released on Thursday morning,Zacks.com reports.

Several other brokerages also recently issued reports on BFLY. Craig Hallum reissued a “buy” rating and set a $5.25 price objective on shares of Butterfly Network in a research report on Wednesday, January 21st. TD Cowen lifted their price objective on Butterfly Network from $4.50 to $6.00 and gave the company a “buy” rating in a report on Friday. Lake Street Capital lifted 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. Loop Capital set a $5.00 price objective on shares of Butterfly Network in a research note on Wednesday, December 31st. Finally, Wall Street Zen raised shares of Butterfly Network from a “sell” rating to a “hold” rating in a report on Sunday, November 23rd. Four investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average price target of $5.44.

Butterfly Network Stock Down 19.0%

BFLY stock opened at $3.78 on Thursday. Butterfly Network has a fifty-two week low of $1.32 and a fifty-two week high of $5.03. The business has a 50 day moving average price of $3.82 and a 200 day moving average price of $2.79. The stock has a market cap of $955.59 million, a price-to-earnings ratio of -12.20 and a beta of 2.27.

Butterfly Network (NYSE:BFLY) last announced its quarterly earnings results on Thursday, February 26th. The company reported ($0.02) EPS for the quarter, topping the consensus estimate of ($0.04) by $0.02. Butterfly Network had a negative net margin of 78.95% and a negative return on equity of 32.05%. The firm had revenue of $31.51 million for the quarter, compared to analyst estimates of $26.25 million. As a group, sell-side analysts anticipate that Butterfly Network will post -0.35 EPS for the current year.

Insider Activity at Butterfly Network

In related news, CTO Victor Ku sold 35,968 shares of Butterfly Network stock in a transaction on Monday, January 5th. The stock was sold at an average price of $3.82, for a total value of $137,397.76. Following the transaction, the chief technology officer owned 811,962 shares in the company, valued at approximately $3,101,694.84. This trade represents a 4.24% 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, Director Jonathan M. Rothberg sold 335,834 shares of the business’s stock in a transaction dated Thursday, January 8th. The shares were sold at an average price of $4.18, for a total value of $1,403,786.12. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 4,725,727 shares of company stock worth $16,172,849. 25.18% of the stock is owned by company insiders.

Institutional Investors Weigh In On Butterfly Network

Several institutional investors and hedge funds have recently modified their holdings of BFLY. Vanguard Group Inc. raised its holdings in shares of Butterfly Network by 4.3% during the 3rd quarter. Vanguard Group Inc. now owns 11,040,080 shares of the company’s stock valued at $21,307,000 after buying an additional 453,258 shares during the period. ARK Investment Management LLC raised its stake in shares of Butterfly Network by 1.6% during the fourth quarter. ARK Investment Management LLC now owns 6,244,427 shares of the company’s stock valued at $23,729,000 after purchasing an additional 99,079 shares during the period. Hood River Capital Management LLC lifted its position in shares of Butterfly Network by 3.6% during the second quarter. Hood River Capital Management LLC now owns 5,127,383 shares of the company’s stock worth $10,255,000 after purchasing an additional 176,515 shares in the last quarter. Geode Capital Management LLC boosted its stake in shares of 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 purchasing an additional 75,243 shares during the period. Finally, AWM Investment Company Inc. grew its holdings in Butterfly Network by 750.0% during 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. Hedge funds and other institutional investors own 37.85% of the company’s stock.

More Butterfly Network News

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.