Form 4: Butterfly Network CEO Sells Shares for Tax Obligations

Butterfly Network's President and CEO, Joseph DeVivo, sold 482,149 shares of Class A Common Stock to cover tax withholding obligations related to restricted stock unit vesting.

Summary

• Joseph DeVivo, President & CEO and Director of Butterfly Network, Inc. (BFLY), reported a transaction involving the company's securities.
• On March 5, 2026, DeVivo disposed of 482,149 shares of Class A Common Stock.
• The shares were sold at a weighted average price of $3.709 per share, with individual sales prices ranging from $3.62 to $3.895 per share.
• This sale was executed under the Issuer's "sell-to-cover" policy to satisfy tax withholding obligations arising from the vesting of restricted stock units.
• The transaction was automatic and not at the discretion of the reporting person.
• Following this transaction, DeVivo beneficially owns 8,030,899 shares of Class A Common Stock directly.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a neutral event, as it is a routine, non-discretionary sale for tax purposes rather than a signal of management's confidence or lack thereof.

Future Outlook

NA

Management Comments

• The Issuer has adopted a "sell-to-cover" policy to satisfy the tax withholding obligations of the Reporting Person.
• The sales reported on this Form 4 represent the number of shares required to be sold by the Reporting Person to cover tax withholding obligations in connection with the vesting of restricted stock units.
• Such sales were automatic and not at the discretion of the Reporting Person.

Industry Context

StockSavvy.ai notes that "sell-to-cover" transactions are common for executives receiving equity compensation and are generally not indicative of a change in management's outlook on the company's prospects, unlike discretionary sales.

Comparison to Industry Standards

• "Sell-to-cover" transactions are standard practice across industries for executives to manage tax liabilities arising from equity compensation.
• Executives at major technology and healthcare companies, such as Apple, Microsoft, and various biotech firms, frequently engage in similar non-discretionary sales upon restricted stock unit vesting.

Stakeholder Impact

• Shareholders: The sale represents a minor reduction in insider holdings, but its non-discretionary nature for tax purposes mitigates concerns about management's confidence in the company's future.

Key Dates

Recommendation

This Form 4 reports a routine, non-discretionary "sell-to-cover" transaction by the CEO to satisfy tax obligations upon RSU vesting. Such sales are common and do not typically signal a change in management's outlook or warrant a change in investment thesis. Therefore, a "hold" recommendation is appropriate as this filing provides no new fundamental information to alter an existing investment decision.

Keywords

Butterfly Network, BFLY, Joseph DeVivo, insider transaction, Form 4, stock sale, restricted stock units, tax withholding