Butterfly Network, Inc. (NYSE:BFLY) has reported a recent transaction by its Chief Technology Officer, Stoica Andrei G, involving the sale of company shares. According to the filing, Stoica disposed of 3,363 shares of Class A Common Stock on June 25, 2024, which resulted in a total transaction value exceeding $3,000.
The shares were sold at a weighted average price of $0.924, with individual sale prices ranging from $0.9151 to $0.9497. The sale was conducted under a "sell-to-cover" policy implemented by Butterfly Network to satisfy the tax withholding obligations that arise from the vesting of restricted stock units. This policy ensures that the necessary number of shares are sold to cover Stoica's tax liabilities in an automatic process, leaving no discretion to the reporting person.
Following the transaction, Stoica Andrei G still retains a substantial stake in the company, owning 1,482,441 shares of Butterfly Network's Class A Common Stock. The sale was reported in compliance with SEC regulations, and complete details of the transaction, including the number of shares sold at each price point, are available upon request to the SEC, the company, or its shareholders.
Investors often monitor insider transactions such as these for insights into executive sentiment towards their company's stock. Butterfly Network, based in Burlington (NYSE:BURL), Massachusetts, specializes in X-ray apparatus and tubes, as well as related irradiation apparatus, and trades under the ticker symbol BFLY on the New York Stock Exchange.
In other recent news, Butterfly Network has reported a robust growth in its Q1 earnings, with a 14% increase in revenue year-over-year. This growth is primarily driven by the successful launch of their iQ3 product and a solid performance in enterprise software sales. The company has exceeded market expectations and raised its full-year revenue and earnings guidance.
Butterfly Network has also reported a 25% increase in upsells in existing accounts within its enterprise software segment. The company is expanding its global reach, with plans to launch the iQ3 product in Canada and Europe later this year. Despite receiving a notification of non-compliance with the NYSE stock price requirement, Butterfly Network plans to regain compliance through continued business execution.
The company's focus on product innovation, global expansion, and market penetration, particularly in the home care and veterinary sectors, has set a positive tone for the year ahead. While the company projects an adjusted EBITDA loss of $55 million to $50 million for the full year 2024, it remains confident in its business strategy and the value it brings to shareholders and the broader medical community.
InvestingPro Insights
As Butterfly Network's (NYSE:BFLY) Chief Technology Officer, Stoica Andrei G, has recently sold shares, current and potential investors might be interested in the financial health and stock performance of the company. According to InvestingPro data, Butterfly Network holds a market capitalization of $183.86 million. The company's stock has experienced significant volatility, with a 1-year price total return of -53.87%, reflecting the potential risks associated with investing in the company.
Butterfly Network's financials reveal a challenging picture. With a negative P/E ratio of -1.52 over the last twelve months as of Q1 2024, the company is not currently profitable, a sentiment echoed by analysts who do not anticipate profitability this year. This is further supported by an operating income margin of -176.4%, indicating substantial losses relative to the company's revenue. Despite these figures, an InvestingPro Tip highlights that Butterfly Network holds more cash than debt on its balance sheet, suggesting some degree of financial stability.
For those considering an investment in Butterfly Network, it's worth noting that the company is quickly burning through cash and does not pay a dividend to shareholders. However, another positive aspect is that the company's liquid assets exceed its short-term obligations. For a deeper dive into the company's financials and to uncover more InvestingPro Tips, visit InvestingPro. There are 6 additional InvestingPro Tips available, which could provide further insights into Butterfly Network's financial health and stock performance. Don't forget to use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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