Some Butterfly Network, Inc. (NYSE:BFLY) shareholders may be a little concerned to see that the Executive VP & Chief Business Officer, Steven Cashman, recently sold a substantial US$724k worth of stock at a price of US$4.91 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 6.8%.

The Last 12 Months Of Insider Transactions At Butterfly Network

Over the last year, we can see that the biggest insider sale was by the CEO, President & Chairman of the Board, Joseph DeVivo, for US$1.8m worth of shares, at about US$3.71 per share. That means that even when the share price was below the current price of US$5.40, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 13% of Joseph DeVivo's holding.

In the last twelve months insiders purchased 235.26k shares for US$653k. On the other hand they divested 1.33m shares, for US$4.5m. Over the last year we saw more insider selling of Butterfly Network shares, than buying. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Does Butterfly Network Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Butterfly Network insiders own 17% of the company, worth about US$233m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Butterfly Network Insiders?

Insiders haven't bought Butterfly Network stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. It is good to see high insider ownership, but the insider selling leaves us cautious. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision.

But note: Butterfly Network may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.