Butterfly Network (NYSE:BFLY) Stock Price Down 15% After Analyst Downgrade

Butterfly Network, Inc. (NYSE:BFLY) shares dropped 15% during mid-day trading 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. Approximately 3,502,618 shares traded hands during trading, a decline of 47% from the average daily volume of 6,578,774 shares. The stock had previously closed at $4.67.

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

Insiders Place Their Bets

In other news, Director Jonathan M. Rothberg sold 769,327 shares of the business’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 transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Over the last ninety days, insiders have sold 4,725,727 shares of company stock worth $16,172,849. 25.18% of the stock is owned by company insiders.

Butterfly Network News Roundup

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 Trading of Butterfly Network

Institutional investors and hedge funds have recently bought and sold shares of the company. Ashton Thomas Private Wealth LLC acquired a new position in shares of Butterfly Network in the 2nd quarter worth approximately $25,000. Ameriprise Financial Inc. bought a new position in Butterfly Network during the third quarter worth $25,000. Y Intercept Hong Kong Ltd acquired a new position in Butterfly Network in the third quarter worth $32,000. BNP Paribas Financial Markets increased its stake in Butterfly Network by 707.2% during the second quarter. BNP Paribas Financial Markets now owns 16,258 shares of the company’s stock valued at $33,000 after purchasing an additional 14,244 shares during the last quarter. Finally, Wisconsin Wealth Advisors LLC acquired a new stake in shares of Butterfly Network during the fourth quarter worth $38,000. Institutional investors and hedge funds own 37.85% of the company’s stock.

Butterfly Network Trading Down 19.0%

The stock’s 50-day moving average price is $3.82 and its 200-day moving average price is $2.79. The company has a market capitalization of $955.59 million, a P/E ratio of -12.20 and a beta of 2.27.

Butterfly Network (NYSE:BFLY) last announced its quarterly earnings data on Thursday, February 26th. The company reported ($0.02) earnings per share for the quarter, beating analysts’ consensus estimates 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 business had revenue of $31.51 million during the quarter, compared to the consensus estimate of $26.25 million. Sell-side analysts expect that Butterfly Network, Inc. will post -0.35 earnings per share 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.