Butterfly Network director Larry Robbins buys $1.68m in stock

Butterfly Network, Inc. (NYSE:BFLY) director Larry Robbins has made a significant investment in the company, purchasing shares worth approximately $1.68 million. The transactions, which took place over two consecutive days, demonstrate Robbins' commitment to the medical imaging company.

On August 28, Robbins, through associated investment funds, acquired 952,277 shares at an average price of $0.9751 per share, and an additional 294,673 shares at an average of $0.9937 per share. The following day, Robbins continued his buying spree, purchasing 429,919 shares at an average price of $1.0746 each. These transactions indicate a price range between $0.9751 and $1.0746 for the shares acquired.

The purchases were made on the open market and the prices paid reflect a weighted average within a $1.00 range on both days. The actual prices paid for the shares varied, with the lowest price at $0.952 and the highest at $1.10. Robbins has undertaken to provide full information regarding the number of shares purchased at each separate price upon request.

Robbins is the Founder, Portfolio Manager, and CEO of Glenview Capital Management, LLC, which manages the Glenview Investment Funds, the entities reported to have purchased the shares. While Robbins has voting and dispositive power over the shares held by these funds, he disclaims beneficial ownership except to the extent of any pecuniary interest.

The recent acquisitions by Robbins have brought his total ownership in Butterfly Network to a significant number of shares, reflecting his confidence in the company's prospects. Butterfly Network specializes in innovative medical imaging technology and is known for its cutting-edge X-ray apparatus and related irradiation apparatus.

Investors and market watchers often look to insider buying as a signal of confidence in a company's future performance. With Robbins' latest purchases, it seems there is a positive sentiment from within the company's leadership about its direction and potential growth.

In other recent news, Butterfly Network, a leader in digital ultrasound technology, posted a record Q2 revenue of $21.5 million, marking a 16% year-over-year increase. This significant growth is the highest in the company's history and surpasses its own financial guidance. The company also implemented successful cost reduction strategies, resulting in an additional annual saving of $10 million.

In addition to this, Butterfly Network has been expanding its AI ecosystem, securing its third Powered by Butterfly chip licensing deal and is currently in negotiations with five out of 15 potential partners for the program. The company's products have received clinical endorsement for use in heart failure management and bladder scanning for home care, and the Butterfly iQ+ was included in the WHO's 2024 compendium for innovative health technologies in low-resource settings.

Despite the progress, the company anticipates an adjusted EBITDA loss between $45 million and $50 million. However, through strategic initiatives and cost-saving measures, Butterfly has extended its cash runway into 2027. These are among the recent developments that have been shaping Butterfly Network's trajectory.

InvestingPro Insights

In light of Larry Robbins' recent investment in Butterfly Network, Inc. (NYSE:BFLY), it's worth taking a closer look at the company's financial health and performance metrics. According to InvestingPro data, Butterfly Network holds a market capitalization of approximately $227.48 million, indicating a modest size within the medical device sector. The company's Price to Earnings (P/E) ratio stands at -2.02, reflecting that it is not currently profitable—a fact corroborated by the InvestingPro Tip that analysts do not expect the company to be profitable this year.

Despite the lack of profitability, Butterfly Network appears to have a strong liquidity position. One InvestingPro Tip highlights that the company holds more cash than debt, suggesting a solid balance sheet that could support future growth or navigate challenging economic conditions. Additionally, Butterfly Network's liquid assets exceed short-term obligations, providing further evidence of financial stability.

InvestingPro data also shows a significant return over the last week with a price total return of 11.53%, although the stock has experienced considerable volatility, as indicated by a one-year price total return of -40.56%. This volatility is echoed in another InvestingPro Tip, which notes the stock price movements are quite volatile. Such fluctuations could represent both risks and opportunities for investors.

For readers interested in a deeper analysis, there are additional InvestingPro Tips available for Butterfly Network at https://www.investing.com/pro/BFLY. These tips may provide further insights into the company's performance and outlook, which could be particularly valuable given the recent insider buying activity.

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