Butterfly Network (NYSE:BFLY) Stock Rating Lowered by Zacks Research

Butterfly Network (NYSE:BFLY) was downgraded by stock analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a report released on Thursday,Zacks.com reports.

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

Butterfly Network Price Performance

Shares of Butterfly Network stock traded down $0.89 during midday trading on Thursday, hitting $3.78. 14,723,916 shares of the company were exchanged, compared to its average volume of 7,226,941. The firm has a 50 day simple moving average of $3.82 and a 200-day simple moving average of $2.78. The firm has a market cap of $955.59 million, a P/E ratio of -12.20 and a beta of 2.27. Butterfly Network has a 52 week low of $1.32 and a 52 week high of $5.03.

Butterfly Network (NYSE:BFLY) last released its quarterly earnings data 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. The firm had revenue of $31.51 million during the quarter, compared to analyst estimates of $26.25 million. Butterfly Network had a negative return on equity of 32.05% and a negative net margin of 78.95%. Equities research analysts expect that Butterfly Network will post -0.35 earnings per share for the current year.

Insider Activity

In related news, Director Jonathan M. Rothberg sold 769,327 shares of Butterfly Network 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 sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. In the last 90 days, insiders sold 4,725,727 shares of company stock valued at $16,172,849. 25.18% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Wisconsin Wealth Advisors LLC acquired a new stake in shares of Butterfly Network during the fourth quarter worth about $38,000. ExodusPoint Capital Management LP acquired a new stake in Butterfly Network during the 4th quarter worth approximately $38,000. Sfmg LLC bought a new position in Butterfly Network in the fourth quarter valued at approximately $39,000. Sanctuary Advisors LLC bought a new position in Butterfly Network in the fourth quarter valued at approximately $40,000. Finally, Merit Financial Group LLC acquired a new position in shares of Butterfly Network in the fourth quarter valued at approximately $45,000. 37.85% of the stock is owned by institutional investors and hedge funds.

Trending Headlines about Butterfly Network

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.