Insider Trading July 8, 2026 04:30 PM

Butterfly Network's DeVivo Offloads $1.6M in Shares Amid Strategic Expansions

CEO executes automatic tax-related sales as the medical device company reports Q1 earnings beats and enters new markets in Latin America and AI imaging.

By Caleb Monroe
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BFLY

Butterfly Network, Inc. (NASDAQ:BFLY) President and Chief Executive Officer Joseph DeVivo sold 204,725 shares of Class A Common Stock on July 7, 2026, generating approximately $1.61 million. The transaction, executed under a sell-to-cover policy for tax withholding on vested restricted stock units, was automatic and not discretionary. Following the sale, DeVivo retains 7,883,844 shares, including acquisitions from the employee stock purchase plan on June 30, 2025, and June 30, 2026. This transaction occurs against a backdrop of strong stock performance, with a 293% return over the past year, though valuation metrics suggest potential overvaluation and high price volatility. In parallel, Butterfly Network reported Q1 2026 earnings that exceeded expectations, with an EPS of -$0.03 versus a forecast of -$0.04, and revenue of $26.5 million surpassing the anticipated $25.74 million. The company also announced the commercial availability of its Butterfly iQ+ and iQ3 handheld ultrasound devices in Brazil, marking its entry into the largest medical device market in Latin America. Additionally, Butterfly Network disclosed a co-development agreement with Midjourney to incorporate its Ultrasound-on-Chip imaging modules into Midjourney’s full-body imaging scanner, with plans for expansion in future generations. The company further appointed Caroll H. Neubauer, former CEO of B. Braun USA, to its Board of Directors to serve on the Compensation and Technology Committees, strengthening its leadership team.

Butterfly Network's DeVivo Offloads $1.6M in Shares Amid Strategic Expansions
BFLY
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Key Points

  • Butterfly Network Q1 2026 earnings exceeded expectations with EPS of -$0.03 and revenue of $26.5 million, beating forecasts in the medical device sector.
  • CEO Joseph DeVivo sold 204,725 shares for $1.61 million through automatic tax-related sales, retaining nearly 7.9 million shares.
  • The company entered the Brazilian market with its iQ+ and iQ3 devices and formed a co-development agreement with Midjourney for AI imaging integration.

Joseph DeVivo, serving as President and Chief Executive Officer of Butterfly Network, Inc. (NASDAQ:BFLY), executed a sale of 204,725 shares of the company’s Class A Common Stock on July 7, 2026. The aggregate value of this transaction reached approximately $1.61 million. This divestment follows a significant 293% return for the stock over the preceding year, although analytical data indicates the current valuation may exceed fair value estimates. Furthermore, market analysis highlights considerable volatility in the stock’s price movements.

The shares were disposed of at prices fluctuating between $7.735 and $8.11 per share, resulting in a weighted average sale price of $7.873 per share. Crucially, these transactions were conducted under the company’s established sell-to-cover policy. The primary purpose was to satisfy tax withholding obligations associated with the vesting of restricted stock units. The execution of these sales was automatic, meaning they were not at the discretion of Mr. DeVivo.

Post-transaction, Mr. DeVivo’s direct holdings in Class A Common Stock stand at 7,883,844 shares. This current position includes additional shares acquired through the company’s employee stock purchase plan on June 30, 2025, and June 30, 2026. Investors seeking more detailed insights may access additional financial metrics and tips for BFLY.

In other recent corporate developments, Butterfly Network reported its first quarter of 2026 earnings, which surpassed analyst expectations. The company achieved an earnings per share (EPS) of -$0.03, outperforming the forecasted -$0.04. Revenue for the quarter reached $26.5 million, exceeding the anticipated $25.74 million. The company also announced the commercial availability of its Butterfly iQ+ and iQ3 handheld ultrasound devices in Brazil. This move marks Butterfly Network’s entry into the largest medical device market in Latin America, expanding its geographic reach.

Additionally, Butterfly Network disclosed a co-development agreement with Midjourney. Under this agreement, Butterfly’s Ultrasound-on-Chip imaging modules will be incorporated into Midjourney’s full-body imaging scanner. The collaboration is expected to expand in future generations of the scanner, indicating a strategic push into AI-integrated medical imaging. Furthermore, Butterfly Network appointed Caroll H. Neubauer, former CEO of B. Braun USA, to its Board of Directors. Mr. Neubauer will serve on the Compensation and Technology Committees, strengthening the company’s leadership team.

These developments highlight Butterfly Network’s strategic moves in expanding its market presence and strengthening its leadership team. The stock currently trades at 7.34, reflecting a decrease of 0.2400 or 3.17%. After hours trading shows a slight increase to 7.37, up 0.0382 or 0.52%.

Risks

  • Analyst data suggests the stock is currently overvalued relative to its fair value, indicating potential downside risk for investors.
  • The stock exhibits high price volatility, which could lead to significant fluctuations in market value.
  • The automatic nature of the stock sales for tax withholding limits direct insight into executive confidence levels.

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