Butterfly Network (NYSE:BFLY) Shares Down 15% on Analyst Downgrade

Butterfly Network, Inc. (NYSE:BFLY) traded down 15% on Friday after Zacks Research downgraded the stock from a hold rating to a strong sell rating. The company traded as low as $4.23 and last traded at $3.9710. 3,502,618 shares were traded during trading, a decline of 47% from the average session volume of 6,578,774 shares. The stock had previously closed at $4.67.

BFLY has been the subject of a number of other research reports. TD Cowen raised their price objective on Butterfly Network from $4.50 to $6.00 and gave the company a “buy” rating in a research report on Friday. Loop Capital set a $5.00 price target on Butterfly Network in a report on Wednesday, December 31st. Craig Hallum reaffirmed a “buy” rating and issued a $5.25 price target on shares of Butterfly Network in a research report on Wednesday, January 21st. Lake Street Capital increased their price objective on shares of Butterfly Network from $4.00 to $5.50 and gave the company a “buy” rating in a research report on Tuesday, January 20th. Finally, Wall Street Zen upgraded shares of Butterfly Network from a “sell” rating to a “hold” rating in a research note on Sunday, November 23rd. Four equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of $5.44.

Insider Activity

In related news, Director Jonathan M. Rothberg sold 769,327 shares of the stock in a transaction on Monday, December 8th. The stock was sold at an average price of $3.27, for a total transaction of $2,515,699.29. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Insiders sold 4,725,727 shares of company stock worth $16,172,849 over the last 90 days. Corporate insiders own 25.18% of the company’s stock.

Key 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

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in BFLY. Ashton Thomas Private Wealth LLC purchased a new stake in Butterfly Network in the second quarter worth approximately $25,000. Ameriprise Financial Inc. bought a new position in shares of Butterfly Network during the 3rd quarter valued at $25,000. Y Intercept Hong Kong Ltd purchased a new position in shares of Butterfly Network in the 3rd quarter worth $32,000. BNP Paribas Financial Markets boosted its stake in shares of Butterfly Network by 707.2% in the 2nd quarter. BNP Paribas Financial Markets now owns 16,258 shares of the company’s stock worth $33,000 after buying an additional 14,244 shares during the last quarter. Finally, Wisconsin Wealth Advisors LLC bought a new stake in shares of Butterfly Network in the fourth quarter worth $38,000. 37.85% of the stock is owned by hedge funds and other institutional investors.

Butterfly Network Price Performance

The business has a 50-day moving average of $3.82 and a 200 day moving average of $2.79. The company has a market cap of $955.59 million, a PE ratio of -12.20 and a beta of 2.27.

Butterfly Network (NYSE:BFLY) last announced its earnings results on Thursday, February 26th. The company reported ($0.02) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.04) by $0.02. Butterfly Network had a negative return on equity of 32.05% and a negative net margin of 78.95%.The business had revenue of $31.51 million for the quarter, compared to analysts’ expectations of $26.25 million. On average, equities analysts predict that Butterfly Network, Inc. will post -0.35 EPS for the current fiscal year.

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.