Butterfly Network (NYSE:BFLY) Trading Down 15% – Here’s Why

Butterfly Network, Inc. (NYSE:BFLY) shares traded down 15% during trading on Friday . The stock traded as low as $4.23 and last traded at $3.9710. 3,502,618 shares were traded during mid-day trading, a decline of 47% from the average session volume of 6,578,774 shares. The stock had previously closed at $4.67.

Key Headlines Impacting Butterfly Network

Here are the key news stories impacting Butterfly Network this week:

• Positive Sentiment: Q4 results beat expectations — revenue of $31.5M topped the consensus ~$26.3M and EPS was -$0.02 versus an expected -$0.04, showing improvement versus last year. BFLY Reports Q4 Loss, Tops Revenue Estimates
• Positive Sentiment: Management issued FY2026 revenue guidance of roughly $117M–$121M, above consensus (~$108.5M), indicating expected continued revenue growth. Butterfly Network Reports Fourth Quarter 2025 Financial Results
• Positive Sentiment: Longer-term thesis: Butterfly’s semiconductor-based, single-probe platform plus AI (Compass) could create a “computer vision” flywheel for point‑of‑care ultrasound and deeper hospital workflow integration — a structural growth story if execution continues. Ultrasound-On-Chip And AI Could Create Computer Vision Flywheel
• Neutral Sentiment: Unusually large call option flow was observed (10,005 calls traded), signaling elevated short‑term speculative or hedging interest that can amplify intraday moves but doesn’t change fundamentals.
• Neutral Sentiment: The full Q4 earnings call transcript is available for detail on drivers and outlook if you want to judge management commentary and cadence. Q4 2025 Earnings Call Transcript
• Negative Sentiment: Zacks moved BFLY to a Rank #5 (Strong Sell), which can pressure sentiment and trigger selling by momentum or model-driven investors. New Strong Sell Stocks for February 27th
• Negative Sentiment: Despite revenue growth, Butterfly remains unprofitable with a very negative net margin and negative ROE; ongoing losses and cash burn keep the risk profile high for investors. Butterfly Network Q4 2025 Earnings — MarketBeat

Analyst Upgrades and Downgrades

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

Butterfly Network Stock Performance

The stock has a market capitalization of $948.51 million, a P/E ratio of -11.41 and a beta of 2.27. The stock has a 50-day moving average price of $3.81 and a two-hundred day moving average price of $2.76.

Butterfly Network (NYSE:BFLY) last released its quarterly earnings results on Thursday, February 26th. The company reported ($0.02) earnings per share for the quarter, beating the consensus estimate of ($0.04) by $0.02. Butterfly Network had a negative net margin of 90.31% and a negative return on equity of 37.80%. The business had revenue of $31.51 million for the quarter, compared to analysts’ expectations of $26.25 million. Equities analysts anticipate that Butterfly Network, Inc. will post -0.35 earnings per share for the current fiscal year.

Insider Transactions at Butterfly Network

In other Butterfly Network news, Director Jonathan M. Rothberg sold 769,327 shares of the firm’s stock in a transaction dated Monday, December 8th. The shares were sold at an average price of $3.27, for a total value of $2,515,699.29. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Insiders have sold 4,725,727 shares of company stock valued at $16,172,849 over the last ninety days. 25.18% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in the company. Ashton Thomas Private Wealth LLC purchased a new stake in Butterfly Network in the second quarter worth $25,000. Ameriprise Financial Inc. bought a new stake in shares of Butterfly Network during the 3rd quarter valued at $25,000. Y Intercept Hong Kong Ltd bought a new position in shares of Butterfly Network in the 3rd quarter worth about $32,000. BNP Paribas Financial Markets lifted its position in Butterfly Network by 707.2% during the 2nd quarter. BNP Paribas Financial Markets now owns 16,258 shares of the company’s stock valued at $33,000 after acquiring an additional 14,244 shares during the period. Finally, Wisconsin Wealth Advisors LLC purchased a new position in Butterfly Network during the 4th quarter valued at about $38,000. Hedge funds and other institutional investors own 37.85% of the company’s stock.

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.