We wouldn't blame Butterfly Network, Inc. (NYSE:BFLY) shareholders if they were a little worried about the fact that Steven Cashman, the Executive VP & Chief Business Officer recently netted about US$1.9m selling shares at an average price of US$4.74. That's a big disposal, and it decreased their holding size by 20%, which is notable but not too bad.

The Last 12 Months Of Insider Transactions At Butterfly Network

Notably, that recent sale by Steven Cashman is the biggest insider sale of Butterfly Network shares that we've seen in the last year. That means that even when the share price was below the current price of US$5.39, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 20% of Steven Cashman's holding.

Over the last year, we can see that insiders have bought 235.26k shares worth US$653k. But insiders sold 1.77m shares worth US$6.8m. In total, Butterfly Network insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership Of Butterfly Network

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It's great to see that Butterfly Network insiders own 17% of the company, worth about US$226m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Butterfly Network Tell Us?

Insiders sold Butterfly Network shares recently, but they didn't buy any. And our longer term analysis of insider transactions didn't bring confidence, either. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Butterfly Network.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

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.