Butterfly Network Outlook: Bearish Signals and Mixed Fundamentals

Market SnapshotButterfly Network (BFLY.N) is currently facing a bearish technical outlook,

, with limited fundamental support. Investors should proceed cautiously given the weak technical indicators and the mismatch between analyst expectations and recent price action.

News Highlights

On May 30, Stanford Health Care announced a $424.9 million municipal bond sale to fund healthcare facility projects and refund existing debt. This could indirectly affect healthcare-related stocks, including Butterfly Network, through sector sentiment.

On May 27, TRIMEDX released an industry report on clinical asset management, highlighting major trends reshaping health care in 2025. Such developments may influence long-term investor sentiment for healthcare technology firms.

On May 31, Dr. Agarwal's Health Care received an investment bank analyst rating update. While the stock in question is different, such ratings can influence sector-wide investor behavior and risk perception.

Analyst Views & Fundamentals

Analysts have been mixed in their assessment of Butterfly Network. The simple average rating is 5.00, while the historical performance-weighted rating is 0.00. This indicates significant dispersion in expectations, with the sole recent rating being a "Strong Buy" from Craig-Hallum, though that firm has a historical win rate of 0.00% and an average return of -3.09% over one prediction.

The current price trend has risen by 19.37%, but this is at odds with the generally bearish expectations from the market. The firm's recent fundamental performance, as measured by the internal diagnostic score of 1.09, reflects poor financial health. EV/EBIT: -7.59 (internal diagnostic score: 2.00) – Indicates a high valuation relative to earnings. PE: -13.80 (internal diagnostic score: 2.00) – Suggests elevated price-to-earnings ratio. ROA: -0.21 (internal diagnostic score: 1.00) – Shows weak asset efficiency. Cash-UP: 0.53 (internal diagnostic score: 2.00) – Indicates mixed cash flow performance. NPM: -15.81% (internal diagnostic score: 1.00) – Reflects negative net profit margin.

Money-Flow Trends

Big-money investors have been cautious, , with block-level inflow ratios hovering near 50%. However, the overall trend is negative at the medium, large, and extra-large fund levels. Conversely, retail investors (small funds) are showing a positive trend, with an inflow ratio of 50.14%.

This mix of retail optimism and institutional caution suggests a potential short-term price divergence, with big-money players possibly hedging against volatility while small investors remain bullish.

Key Technical Signals

Technically, Butterfly Network is struggling, with no bullish indicators and four bearish signals. The internal technical score is 1.77, suggesting weak momentum and a high risk of further decline. WR Overbought (internal diagnostic score: 1.00) – A bearish signal indicating overvaluation. Long Upper Shadow (internal diagnostic score: 2.19) – Suggests uncertainty in price direction. MACD Golden Cross (internal diagnostic score: 1.29) – Typically a bullish signal, but here it appears to be neutral or weak.

Recent chart patterns include: On May 19 and 21, WR Overbought and MACD Golden Cross were observed. On May 18 and 14, WR Oversold appeared, suggesting potential support but limited follow-through.

Overall, the chart suggests fading momentum and a high likelihood of further downside.

Conclusion

Consider waiting for a pull-back before considering a long position in Butterfly Network. The stock is currently in a bearish phase, with weak technicals, limited analyst support, and mixed fundamentals. Investors should monitor both earnings and broader healthcare sector news for potential turning points.