This Insider Has Just Sold Shares In Butterfly Network

Anyone interested in Butterfly Network, Inc. (NYSE:BFLY) should probably be aware that the Chief Business Officer, Steven Cashman, recently divested US$214k worth of shares in the company, at an average price of US$1.50 each. However, the silver lining is that the sale only reduced their total holding by 6.1%, so we're hesitant to read anything much into it, on its own.

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Butterfly Network Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the CEO, President & Chairman of the Board, Joseph DeVivo, sold US$781k worth of shares at a price of US$2.44 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$1.58). So it may not tell us anything about how insiders feel about the current share price.

In total, Butterfly Network insiders sold more than they bought over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for Butterfly Network

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Insider Ownership Of Butterfly Network

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 19% of Butterfly Network shares, worth about US$77m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Butterfly Network Insider Transactions Indicate?

Unfortunately, there has been more insider selling of Butterfly Network stock, than buying, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 3 warning signs for Butterfly Network you should be aware of.

But note: Butterfly Network may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.