Form 4: Butterfly Network Insider Sells Shares for Tax Withholding

Butterfly Network's President & CEO, Joseph DeVivo, reported the sale of 204,725 shares of Class A Common Stock to cover tax withholding obligations.

Summary

• Joseph DeVivo, President & CEO and Director of Butterfly Network, Inc., reported a transaction on July 7, 2026.
• The transaction involved the sale of 204,725 shares of Class A Common Stock.
• These sales were executed under a 'sell-to-cover' policy to satisfy tax withholding obligations related to the vesting of restricted stock units.
• The sales were automatic and not at the discretion of Mr. DeVivo.
• The weighted average sales price per share was $7.873, with individual sales ranging from $7.735 to $8.11.
• Following these transactions, Mr. DeVivo beneficially owns 7,883,844 shares of Class A Common Stock.
• The filing also notes the acquisition of 28,835 shares under the Issuer's employee stock purchase plan on June 30, 2025, and another 28,835 shares on June 30, 2026.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a neutral filing, as the reported stock sales are for tax withholding purposes and are a standard, non-discretionary event for the executive.

Positives

• The sale of shares was to cover mandatory tax withholding obligations, indicating a standard procedure for executive compensation.
• The company has a 'sell-to-cover' policy in place, which is a common and transparent method for managing tax liabilities associated with equity awards.
• Mr. DeVivo continues to beneficially own a significant number of shares (7,883,844) after the transaction.

Negatives

• A notable number of shares (204,725) were sold, which could be perceived negatively by the market if not understood in context.
• The sale occurred at a weighted average price of $7.873, which might be below the current market price at the time of the filing, though the range indicates some sales were higher.

Risks

• The primary risk is the potential for negative market perception of insider selling, even if it's for tax purposes.
• Fluctuations in the stock price between the vesting date and the sale date could impact the effective price received by the executive.

Future Outlook

No specific future outlook or guidance is provided in this Form 4 filing, as it pertains to past transactions.

Management Comments

• 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 Form 4 filings detailing 'sell-to-cover' transactions for tax withholding are common for executives across the biotechnology and medical technology sectors, especially following periods of significant stock appreciation or vesting events for equity compensation.

Stakeholder Impact

• Shareholders: May observe a reduction in the number of shares held by a key executive, though the reason is for tax obligations, which is a standard practice.
• Employees: The 'sell-to-cover' policy is a standard executive compensation practice and does not directly impact employees.
• Creditors/Suppliers: No direct impact is anticipated from this filing.

Next Steps

• Continued monitoring of Joseph DeVivo's beneficial ownership and any future transactions.
• Observation of Butterfly Network's stock performance and any related market commentary.

Key Dates

Keywords

Form 4, Insider Transaction, Butterfly Network, BFLY, Joseph DeVivo, Stock Sale, Tax Withholding, Restricted Stock Units, Executive Compensation, Beneficial Ownership