Butterfly Network (NYSE:BFLY) Shares Gap Down – Time to Sell?

Posted by Stanley Muller on Oct 31st, 2026

Butterfly Network, Inc. (NYSE:BFLY – Get Free Report)’s stock price gapped down before the market opened on Thursday. The stock had previously closed at $7.81, but opened at $7.05. Butterfly Network shares last traded at $7.8370, with a volume of 1,279,709 shares traded.

Key Headlines Impacting Butterfly Network

Here are the key news stories impacting Butterfly Network this week:

Positive Sentiment: Q3 results exceeded expectations. Butterfly reported revenue of $32.60 million, ahead of analysts’ roughly $28.37 million estimate. Its adjusted loss was approximately $0.01 per share, better than consensus estimates ranging from a $0.03 to $0.04 loss and substantially improved from the $0.13 loss reported a year earlier. Butterfly Network Reports Third Quarter 2026 Financial Results
Positive Sentiment: Management raised its 2026 revenue outlook. The higher forecast, along with management’s statement that quarterly revenue and adjusted earnings came in ahead of guidance, suggests improving demand for Butterfly’s semiconductor-based ultrasound devices, cloud software and artificial-intelligence products. Butterfly Network’s Q3 Adjusted Loss Narrows as Revenue Increases; 2026 Revenue Outlook Raised
Positive Sentiment: New federal wins add potential growth and validation. Investors are weighing recently announced federal contracts or business wins as evidence that Butterfly’s portable ultrasound technology may be gaining traction in government and institutional healthcare markets. Is Butterfly Network a Bargain Following Raised Guidance and New Federal Wins?
Neutral Sentiment: Management’s earnings call provided additional context. The Q3 discussions focused on execution against the company’s growth strategy, adoption of its point-of-care ultrasound platform and the implications of the raised outlook. Butterfly Network Q3 2026 Earnings Call Transcript
Negative Sentiment: Butterfly remains unprofitable. Despite the narrower adjusted loss, the company continues to report substantial GAAP losses, a negative net margin and negative return on equity. Investors may therefore remain cautious until revenue growth translates into sustained profitability and cash-flow improvement. Butterfly Network Reports Q3 Loss, Beats Revenue Estimates

Wall Street Analyst Weigh In

A number of research firms recently commented on BFLY. Weiss Ratings reissued a “sell (d-)” rating on shares of Butterfly Network in a report on Monday, August 3rd. TD Cowen reiterated a “buy” rating and set a $10.00 price target on shares of Butterfly Network in a research report on Friday, September 11th. Evercore began coverage on Butterfly Network in a research report on Tuesday, September 29th. They set an “outperform” rating and a $15.00 target price on the stock. Canaccord Genuity Group started coverage on Butterfly Network in a report on Monday, October 12th. They issued a “buy” rating and a $10.00 target price on the stock. Finally, Needham & Company LLC began coverage on Butterfly Network in a research note on Tuesday, September 22nd. They set a “buy” rating and a $10.00 price target for the company. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $8.75.

Get Our Latest Stock Analysis on BFLY

Butterfly Network Trading Down 14.9%

The firm has a market capitalization of $1.70 billion, a PE ratio of -30.43 and a beta of 2.04. The stock’s 50 day moving average price is $8.06 and its two-hundred day moving average price is $6.04.

Butterfly Network (NYSE:BFLY – Get Free Report) last posted its earnings results on Thursday, October 29th. The company reported ($0.01) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.04) by $0.03. The firm had revenue of $32.60 million for the quarter, compared to analyst estimates of $28.37 million. Butterfly Network had a negative return on equity of 21.38% and a negative net margin of 43.56%. Analysts expect that Butterfly Network, Inc. will post -0.18 earnings per share for the current year.

Insider Buying and Selling at Butterfly Network

In other news, CAO Megan Carlson sold 13,804 shares of the firm’s stock in a transaction on Friday, September 4th. The stock was sold at an average price of $7.30, for a total transaction of $100,769.20. Following the sale, the chief accounting officer owned 412,085 shares in the company, valued at $3,008,220.50. This trade represents a 3.24% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Louise Phanstiel acquired 115,200 shares of the stock in a transaction dated Friday, August 14th. The stock was acquired at an average cost of $8.68 per share, with a total value of $999,936.00. Following the transaction, the director owned 300,461 shares of the company’s stock, valued at approximately $2,608,001.48. This trade represents a 62.18% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. In the last ninety days, insiders have sold 285,855 shares of company stock valued at $2,426,034. 21.99% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the stock. Janus Henderson Group PLC purchased a new stake in Butterfly Network during the first quarter valued at about $446,000. Bank of America Corp DE raised its holdings in shares of Butterfly Network by 71.0% in the 1st quarter. Bank of America Corp DE now owns 4,165,222 shares of the company’s stock worth $16,827,000 after purchasing an additional 1,728,938 shares during the period. Dimensional Fund Advisors LP lifted its stake in shares of Butterfly Network by 30.9% in the 1st quarter. Dimensional Fund Advisors LP now owns 2,358,181 shares of the company’s stock valued at $9,524,000 after purchasing an additional 557,100 shares in the last quarter. Lotus Technology Management LP acquired a new position in shares of Butterfly Network in the 2nd quarter valued at about $1,378,000. Finally, State Street Corp grew its holdings in shares of Butterfly Network by 4.0% during the 2nd quarter. State Street Corp now owns 5,762,672 shares of the company’s stock worth $48,522,000 after purchasing an additional 223,012 shares during the period. 37.85% of the stock is currently owned by hedge funds and other institutional investors.

About Butterfly Network

(Get Free Report)

Butterfly Network, Inc develops portable medical imaging technology designed to make ultrasound more accessible across hospitals, clinics, emergency-care settings and other care environments. The company’s core products use a semiconductor-based ultrasound-on-chip platform, replacing conventional ultrasound systems’ large arrays of piezoelectric transducers with a compact, software-driven probe.

Its product portfolio includes the Butterfly iQ, iQ+, and iQ3 handheld ultrasound systems, which connect to compatible mobile devices and provide imaging across multiple clinical applications.

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