Butterfly Network, Inc.'s (NYSE:BFLY) Chief Technology Officer, Stoica Andrei G, has sold a total of 3,296 shares of the company's Class A Common Stock, according to a recent filing with the U.S. Securities and Exchange Commission. The transaction, which took place on September 24, 2024, amounted to over $5,700 at an average price of $1.74 per share.
The sale was made as part of a "sell-to-cover" policy adopted by Butterfly Network to satisfy tax withholding obligations related to the vesting of restricted stock units. As noted in the filing, the sales were automatic and were not made at the discretion of Stoica Andrei G. The shares were sold at varying prices, ranging from $1.71 to $1.78 per share. Following this transaction, the Chief Technology Officer still holds 1,467,230 shares of Butterfly Network, Inc.
The company, known for its innovative medical imaging technology, including handheld ultrasound devices, is listed under the X-Ray Apparatus & Tubes & Related Irradiation Apparatus category in the Standard Industrial Classification. Butterfly Network, which was formerly known as Longview Acquisition Corp., is incorporated in Delaware and has its fiscal year end on December 31.
Investors and security holders of Butterfly Network can request more detailed information about the exact number of shares sold at each price from the staff of the U.S. Securities and Exchange Commission or directly from the company.
In other recent news, Butterfly Network reported a record 16% year-over-year increase in its Q2 2024 revenue, reaching a historic high of $21.5 million. This accomplishment was partly due to successful cost reduction strategies, which have resulted in an additional annual saving of $10 million. The company has also appointed Steve Cashman as Chief Business Officer to oversee global sales, marketing, product, and corporate strategy. TD Cowen has maintained its Buy rating on Butterfly Network shares, demonstrating confidence in the company's growth strategy. The financial firm is particularly optimistic about the potential success of the company's iQ3 product in European markets. Butterfly Network's ongoing efforts to integrate artificial intelligence (AI) into their operations were highlighted during the recent 9th annual TD Cowen FutureHealth conference. The company is also expanding its AI ecosystem, securing its third Powered by Butterfly chip licensing deal. Despite these positive developments, the company anticipates an adjusted EBITDA loss between $45 million and $50 million for the full year. These recent developments indicate a continued focus on growth and expansion for Butterfly Network.
InvestingPro Insights
As Butterfly Network, Inc. (NYSE:BFLY) sees its Chief Technology Officer, Stoica Andrei G, part with a portion of his shares, the market might be looking for broader signals within the company's financial health and future prospects. According to recent data from InvestingPro, Butterfly Network holds a market capitalization of $324.18 million, suggesting a modest size within the medical imaging technology sector. Investors may find the company's cash position reassuring, as one of the InvestingPro Tips highlights that Butterfly Network holds more cash than debt on its balance sheet, which is a positive sign of financial stability.
However, the same InvestingPro Tips indicate a rapid cash burn and a lack of profitability over the last twelve months, which could be areas of concern for potential investors. Analysts contributing to InvestingPro also do not anticipate the company to be profitable this year. This insight could be particularly relevant as investors assess the implications of the recent insider sale.
Furthermore, in terms of stock performance, Butterfly Network has experienced significant volatility, with a notable price decrease over the last week. Yet, on a brighter note, the company has seen a strong return over the last month and three months. Specifically, the one-month price total return as of the data cutoff was a remarkable 59.4%, and the three-month return was closely aligned at 59.73%. These figures suggest a recent uptrend in investor sentiment and market performance for Butterfly Network.
For more detailed financial analysis and additional InvestingPro Tips, investors can visit the dedicated InvestingPro page for Butterfly Network at https://www.investing.com/pro/BFLY. The platform offers a comprehensive suite of tools and insights, including 11 tips for Butterfly Network, to help users make more informed investment decisions.
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