Butterfly Network (BFLY) CEO’s automatic share sale covers RSU tax withholding
Filing Impact
Filing Sentiment
Form Type
4
Rhea-AI Filing Summary
Butterfly Network, Inc. director and President & CEO Joseph DeVivo reported an open-market sale of 204,725 shares of Class A common stock at a weighted average price of $7.873 per share. According to the company’s policy, these automatic “sell-to-cover” transactions were executed solely to satisfy tax withholding obligations from vesting restricted stock units and were not at his discretion.
Following the sale, DeVivo directly holds 7,883,844 shares of Butterfly Network common stock. His holdings include 28,835 shares acquired under the company’s employee stock purchase plan on June 30, 2025 and 28,835 shares acquired on June 30, 2026, as noted in the filing footnotes.
Positive
- None.
Negative
- None.
Insider Trade Summary
Net Seller: 204,725 shares ($1,611,800)
Net Sell
1 txn
Insider
DEVIVO JOSEPH
Role
President & CEO
Sold
204,725 shs ($1.61M)
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Sale | Class A Common Stock | 204,725 | $7.873 | $1.61M |
Holdings After Transaction:
Class A Common Stock — 7,883,844 shares (Direct, null)
Footnotes (1)
- 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. Represents the weighted average sales price per share. The shares sold at prices ranging from $7.735 to $8.11 per share. Full information regarding the number of shares sold at each price shall be provided upon request to the staff of the U.S. Securities and Exchange Commission, the Issuer, or a security holder of the Issuer. Includes 28,835 shares acquired under the Issuer's employee stock purchase plan on June 30, 2025 and 28,835 shares acquired under the Issuer's employee stock purchase plan on June 30, 2026.
Key Figures
Shares sold: 204,725 shares
Weighted average sale price: $7.873 per share
Sale price range: $7.735–$8.11 per share
+3 more
6 metrics
Shares sold
204,725 shares
Open-market sale on 2026-07-07 to cover tax withholding
Weighted average sale price
<money>$7.873</money> per share
Average price for 204,725 shares sold
Sale price range
<money>$7.735</money>–<money>$8.11</money> per share
Range of individual transaction prices within the reported sale
Shares held after transaction
7,883,844 shares
Direct ownership after the 204,725-share sale
ESPP shares acquired 2025-06-30
28,835 shares
Acquired under employee stock purchase plan on June 30, 2025
ESPP shares acquired 2026-06-30
28,835 shares
Acquired under employee stock purchase plan on June 30, 2026
Key Terms
sell-to-cover, restricted stock units, employee stock purchase plan
3 terms
sell-to-cover financial
"The Issuer has adopted a "sell-to-cover" policy to satisfy the tax withholding obligations"
Sell-to-cover is when part of newly issued or exercised company stock is immediately sold to pay required taxes and fees, so the recipient keeps the remaining shares. For investors this matters because it reduces the number of shares insiders or employees actually hold after a grant, can create small, routine share sales that aren’t signal of cashing out, and slightly increases share supply on the market—like selling a portion of a paycheck to cover the tax bill.
restricted stock units financial
"tax withholding obligations in connection with the vesting of restricted stock units"
Restricted stock units are a type of company reward where employees are promised shares of stock, but they only fully own these shares after meeting certain conditions, like staying with the company for a set time. They matter because they can become valuable assets and are often used to motivate employees to help the company succeed.
employee stock purchase plan financial
"Includes 28,835 shares acquired under the Issuer's employee stock purchase plan"
An employee stock purchase plan is a company program that lets workers buy shares through small payroll deductions, often at a discount to the market price and after a set offering period. Think of it like a workplace savings plan that turns into ownership: it encourages employees to share in the company’s success and can create predictable buying or selling of stock that investors watch because it affects supply, demand and employee incentives.
FAQ
What did Butterfly Network (BFLY) CEO Joseph DeVivo report in this Form 4?
Joseph DeVivo reported selling 204,725 shares of Butterfly Network Class A common stock at a weighted average price of $7.873 per share. The filing states these were automatic transactions linked to tax withholding obligations from vesting restricted stock units.
What role did restricted stock units play in the Butterfly Network Form 4?
The sale was tied to vesting restricted stock units granted to Joseph DeVivo. When these RSUs vested, the issuer’s sell-to-cover policy required selling enough shares to cover tax withholding obligations, which generated the 204,725-share sale reported in the Form 4.