Adversity is less terrifying than hope: Butterfly Network Inc. (BFLY)

Butterfly Network Inc. (NYSE: BFLY) stock jumped 5.12% on Friday to $2.67 against a previous-day closing price of $2.54. With 1.42 million shares changed hands, the volume of the stock remained lighter than its average volume of 2.14 million shares. During the session, the Medical Devices company that operates in wider Healthcare sector, reached to the highest price of $2.6800 whereas the lowest price it dropped to was $2.4850. The 52-week range on BFLY shows that it touched its highest point at $8.72 and its lowest point at $2.17 during that stretch. It currently has a 1-year price target of $6.00.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of BFLY was up-trending over the past week, with a rise of 11.25%, but this was up by 17.62% over a month. Three-month performance dropped to -38.90% while six-month performance fell -41.06%. The stock lost -57.07% in the past year, while it has gained 8.54% so far this year. A look at the trailing 12-month EPS for BFLY yields -0.75 with Next year EPS estimates of -0.83. For the next quarter, that number is -0.22. This implies an EPS growth rate of 92.80% for this year and 6.70% for next year.

Float and Shares Shorts:

At present, 200.17 million BFLY shares are outstanding with a float of 152.81 million shares on hand for trading. On Oct 13, 2022, short shares totaled 22.89 million, which was 11.47% higher than short shares on Sep 14, 2022. In addition to Dr. Jonathan M. Rothberg Ph.D. as the firm’s Founder & Chairman, Dr. Todd M. Fruchterman M.D., Ph.D. serves as its Pres, CEO & Director.

Institutional Ownership:

Through their ownership of 54.14% of BFLY’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 29.05% of BFLY, in contrast to 19.76% held by mutual funds. Shares owned by individuals account for 17.21%. As the largest shareholder in BFLY with 7.59% of the stake, Fidelity Management & Research Co holds 13,208,828 shares worth 13,208,828. A second-largest stockholder of BFLY, The Vanguard Group, Inc., holds 11,317,673 shares, controlling over 6.50% of the firm’s shares. ARK Investment Management LLC is the third largest shareholder in BFLY, holding 10,840,899 shares or 6.23% stake. With a 5.73% stake in BFLY, the ARK Genomic Revolution ETF is the largest stakeholder. A total of 9,971,381 shares are owned by the mutual fund manager. The Fidelity Mid Cap Stock Fund, which owns about 4.53% of BFLY stock, is the second-largest Mutual Fund holder. It holds 7,883,098 shares valued at 19.39 million. Vanguard Total Stock Market Index holds 2.08% of the stake in BFLY, owning 3,615,330 shares worth 8.89 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for BFLY since 3 analysts follow the stock currently. There are 3 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 0 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With BFLY analysts setting a high price target of $7.50 and a low target of $4.50, the average target price over the next 12 months is $6.00. Based on these targets, BFLY could surge 180.9% to reach the target high and rise by 68.54% to reach the target low. Reaching the average price target will result in a growth of 124.72% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. BFLY will report FY 2022 earnings on 02/26/2024. Analysts have provided yearly estimates in a range of -$0.86 being high and -$0.90 being low. For BFLY, this leads to a yearly average estimate of -$0.89. The surprise factor in the prior quarter was $0.09. Based on analyst estimates, the high estimate for the next quarter is -$0.18 and the low estimate is -$0.24. The average estimate for the next quarter is thus -$0.22.

Summary of Insider Activity:

Insiders traded BFLY stock several times over the past three months with 0 Buys and 3 Sells. In these transactions, 0 shares were bought while 28,732 shares were sold. The number of buy transactions has increased to 26 while that of sell transactions has risen to 14 over the past year. The total number of shares bought during that period was 10,368,872 while 9,585,054 shares were sold.

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