Executive Waves Goodbye to Nearly 14,000 Shares, Valued at More Than $100,000
Key Points
The CAO sold 13,804 shares at $7.30 per share for a total transaction value of ~$101,000 on September 4, 2026.
The transaction size represents 3% of the direct equity holdings held before the filing.
The disposition was non-discretionary and was executed under a sell-to-cover policy to satisfy tax withholding obligations following the vesting of restricted stock units.
The automatic nature of this transaction indicates routine portfolio management for tax liabilities and does not reflect a change in the executive's investment outlook on the digital health enterprise.
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Megan Carlson, CAO and SVP, Finance of Butterfly Network, Inc. (NYSE:BFLY), sold 13,804 shares of Class A Common Stock on Sept. 4, 2026, according to a recent SEC Form 4 filing.
Transaction summary
| Metric | Value |
|---|---|
| Shares sold | 13,804 |
| Transaction value | ~$101,000 |
| Post-transaction shares (directly held) | ~412,000 |
| Post-transaction value | $3.03 million |
Transaction value based on SEC Form 4 weighted average sale price ($7.30); post-transaction value based on September 04, 2026 market close ($7.36).
Key questions
- Why was this equity disposition executed?
The transaction was a non-discretionary sale conducted under a sell-to-cover policy to satisfy tax withholding requirements triggered by the vesting of equity awards. - What is the extent of the CAO's remaining direct ownership?
Megan Carlson continues to hold ~412,000 shares directly, which represents 0.15% of the shares held by insiders and maintains significant alignment with company performance. - How has the stock performed leading up to this vesting event?
Shares of the medical device company delivered a 381% total return for the 12-month period ending on the September 4, 2026 transaction date, while the equity was priced at $7.46 as of the September 9, 2026 market close.
Company Overview
| Metric | Value |
|---|---|
| Share Price (as of market close 2026-09-09) | $7.46 |
| Market Capitalization | $2.1 billion |
| Revenue (TTM) | $112.1 million |
| Net Income (TTM) | -$74.8 million |
Company Snapshot
- Butterfly Network develops and commercializes innovative portable ultrasound imaging devices, including the Butterfly iQ and Butterfly iQ+, which enable point-of-care whole-body ultrasound imaging through smartphone and tablet connectivity.
- The company generates revenue through the sale of its proprietary ultrasound devices and related services to healthcare providers, hospitals, and clinical settings globally, leveraging its digital health platform to expand market penetration.
- The company serves healthcare professionals and medical institutions seeking portable, cost-effective ultrasound solutions for point-of-care diagnostics and clinical applications across domestic and international markets.
Butterfly Network operates as a digital health enterprise with a market capitalization of $2.1 billion, generating $112.1 million in TTM revenue with a workforce of 220 employees. The company's competitive advantage derives from its proprietary ultrasound technology platform that enables portable, smartphone-integrated imaging capabilities, positioning it at the intersection of medical device innovation and digital health transformation. Despite current net losses of $74.8 million TTM, the company's 381.05% one-year stock appreciation reflects investor confidence in its growth trajectory and the expanding addressable market for point-of-care ultrasound solutions.
What this transaction means for investors
It's important to remember that insider sales happen for a variety of reasons. Many are triggered by rather ordinary events, like tax withholding or prearranged sales. Therefore, retail investors should always examine a company's fundamentals to get a true read on whether a stock is right for their portfolio. With that in mind, let's have a look at Butterfly Network (BFLY).
To begin, let's see how BFLY stock has performed relative to the stock market. Since 2021, BFLY shares have generated a total return of -40%, equating to a compound annual growth rate (CAGR) of -9.7%. The S&P 500, meanwhile, has delivered a total return of 83%, with a CAGR of 12.9%.
As for its fundamentals, BFLY has both positives and negatives. Revenue, for its part, is a big positive. The company's revenue has soared from around $60 million in 2021 to more than $112 million now. Similarly, free cash flow has improved. While the overall amount is still negative, the figure has narrowed from $(200) million to about $(30) million.
Overall, the figures are moving in the right direction. However, the fact remains that the company has yet to achieve consistent profitability. Until BFLY can shift into that mode, some investors will look elsewhere.
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Jake Lerch has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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