SCHEDULE: Rothberg Amends Butterfly Network Stake Filing

Jonathan M. Rothberg and associated entities have updated their Schedule 13D filing concerning Butterfly Network, Inc., detailing recent stock transactions.

Summary

• This filing is an amendment (Amendment No. 10) to a previously filed Schedule 13D, updating information regarding beneficial ownership of Butterfly Network, Inc. (the "Issuer") Class A and Class B common stock.
• The reporting persons include Jonathan M. Rothberg, Ph.D., and several LLC entities (4C Holdings I-V, LLC).
• The amendment details stock transactions conducted between July 14, 2026, and July 16, 2026, as part of estate planning and pursuant to a Rule 10b5-1 trading plan.
• Specifically, 815,632 shares of Class A common stock were sold on July 14, 2026, at an average price of $7.7178 per share.
• On July 15, 2026, 1,730,319 shares of Class A common stock were sold at an average price of $7.3228 per share.
• On July 16, 2026, 253,867 shares of Class A common stock were sold at an average price of $7.0889 per share.
• Also on July 16, 2026, 1,213,634 shares of Class B common stock were sold at an average price of $7.0889 per share, which automatically converted to Class A common stock upon sale.

Sentiment

Score: 4

Explanation: StockSavvy.ai views this filing as slightly negative due to the significant volume of stock sales by a key insider, despite the explanation of estate planning and the use of a trading plan.

Positives

• Transactions were conducted under a Rule 10b5-1 trading plan, indicating a pre-determined and structured approach to selling shares.
• The sales are attributed to estate planning, suggesting a strategic, long-term financial management approach by the reporting person.

Negatives

• Significant sales of both Class A and Class B stock by a major reporting person, potentially indicating a reduction in beneficial ownership and confidence.
• The weighted average sale prices indicate a downward trend in the price of Class A shares sold over the three-day period.

Risks

• Potential for increased downward pressure on the stock price due to the sale of a substantial number of shares.
• The sales may be interpreted by the market as a signal of reduced conviction from a key insider.

Future Outlook

The filing primarily reports past transactions and does not contain explicit forward-looking statements or guidance from the company itself. The transactions are described as part of estate planning and executed under a trading plan.

Management Comments

• Transactions were effected by the Reporting Persons in connection with estate planning and pursuant to a Rule 10b5-1 trading plan entered into on March 13, 2026.

Industry Context

StockSavvy.ai notes that insider selling, especially when conducted under a pre-arranged plan like a Rule 10b5-1, is a common practice for managing personal finances and diversification. However, the scale of these sales by a significant holder like Dr. Rothberg warrants attention from investors monitoring insider activity in the medical technology sector.

Stakeholder Impact

• Shareholders may view the significant sales by Dr. Rothberg as a potential negative signal, possibly impacting short-term stock price performance.
• Creditors and suppliers are unlikely to be directly impacted by these stock transactions.

Next Steps

• Continued monitoring of insider transactions and beneficial ownership changes for Butterfly Network, Inc.

Key Dates

Recommendation

The filing details significant insider selling, which is a negative indicator. However, the sales are conducted under a pre-arranged Rule 10b5-1 plan for estate planning purposes, mitigating concerns about immediate negative sentiment. Without further company-specific performance data or strategic updates, a 'hold' recommendation is prudent, suggesting investors await more definitive catalysts or further clarity on the company's operational performance.

Keywords

Butterfly Network, Schedule 13D, Jonathan M. Rothberg, Stock Sale, Beneficial Ownership, Class A Common Stock, Class B Common Stock, Rule 10b5-1