CDC director files to sell her entire Butterfly (BFLY) stake one day after the 22% pop

The director who left for the CDC is selling everything on record

Erica Schwartz stepped off Butterfly Network's board on 5 August 2026, the day the Senate confirmed her to run the CDC↗ ⁴⁵. On 22 September, the day a Buy initiation sent the stock up 21.99% to $9.93 ³¹⁰, she sold 78,679 Class A shares for $786,790 ¹. The next morning her Form 144 reached EDGAR↗: 323,020 more shares, aggregate market value $3,230,200 ¹.

Her most recent ownership filing, from 22 June, reported 401,699 shares ⁹. The completed sale plus the pending block equals that position exactly. Rule 144 asks no reason, and none is given ¹.

The bull case is 2030 money with nothing shipped

Needham's David Saxon opened at Buy with a $10 target, a sum-of-the-parts at roughly 16 times the firm's 2027 sales estimate ³. The model carries an estimated $300 million of Midjourney licensing revenue at 2030 and about $25 million from Mendaera, and concedes no Embedded partnership has launched a commercial product; roughly two-thirds of sales are still the legacy probe business ³. Sixteen times sales across 244.9 million shares implies about $150 million of 2027 revenue, a third more than the trailing four quarters delivered ¹¹¹.

Affiliates put 685,000 shares on the tape

President, CEO and chairman Joseph DeVivo disclosed $2.07 million of July and August sales, then filed a fresh 2,811-share notice the afternoon of the pop ². Counting Schwartz's 401,699 shares, disclosed affiliate supply since July runs to about 685,000 shares, 0.28 percent of the 244,858,246 outstanding ¹². Small against the float. The signal is who sold, and when.

The biggest block is the one still pending

Schwartz's 22 September sale printed near $9.99 a share, within half a percent of the $10.05 52-week high ¹¹⁰. The pending block is marked at exactly $10. Her notice lists five vesting tranches running back to June 2024 and no Rule 10b5-1 plan date; DeVivo's carries one, adopted 12 December 2025 ¹². The bull case is priced in 2030 dollars; the insider paper cleared at $10.

The counter-read: the CEO is staying

DeVivo's July sale of 211,798 shares at an average $6.56 was a sell-to-cover for RSU taxes, automatic and not at his discretion, his Form 4 states↗ ⁷. The August block ran under the December plan, adopted long before the run ⁸. He still held 7,353,700 shares after gifting 250,000 to trusts for his children, about $69 million at Wednesday's $9.42 close ⁶³. Buyers met the tape too: 33 hedge funds held $425 million of the stock at the end of June, up from $171 million a quarter earlier ¹⁰.

What settles it

Earnings are due around 30 October, guided to $26 to $30 million of revenue and adjusted EBITDA between negative $9 million and negative $6 million ¹⁰. Butterfly has lost money in each of the last eight quarters while cash fell to $124.7 million at midyear ¹¹. The tells are the first commercial Embedded shipment, and the Form 4 that follows her last 323,020 shares out the door.