Canaccord Genuity Group Forecasts Strong Price Appreciation for Tempus AI (NASDAQ:TEM) Stock

Key Points

• Canaccord Genuity raised Tempus AI’s price target from $80 to $95 and maintained a “buy” rating, implying 41.61% potential upside from the prior close.
• Tempus AI shares fell 5.4% to $67.09, while the broader analyst view remained mixed: the stock has an average “hold” rating and a consensus price target of $71.84.
• The company reported better-than-expected quarterly results, with EPS of -$0.04 versus estimates of -$0.14 and revenue of $382.49 million, up 21.6% year over year; however, insiders sold about $80.4 million of stock during the quarter.

Tempus AI (NASDAQ:TEM - Get Free Report) had its price target hoisted by research analysts at Canaccord Genuity Group from $80.00 to $95.00 in a research report issued to clients and investors on Monday, Benzinga reports. The firm presently has a "buy" rating on the stock. Canaccord Genuity Group's price objective would indicate a potential upside of 41.61% from the company's previous close.

TEM has been the topic of a number of other research reports. Stifel Nicolaus cut their target price on Tempus AI from $60.00 to $50.00 and set a "hold" rating on the stock in a research note on Monday, August 3rd. UBS Group began coverage on Tempus AI in a research report on Wednesday, September 9th. They set a "neutral" rating and a $70.00 price target for the company. Weiss Ratings lowered Tempus AI from a "sell (d-)" rating to a "sell (e+)" rating in a report on Monday, September 28th. BTIG Research boosted their price objective on Tempus AI from $70.00 to $80.00 and gave the stock a "buy" rating in a research report on Thursday, August 20th. Finally, Rothschild & Co Redburn started coverage on Tempus AI in a research report on Tuesday, September 8th. They issued a "neutral" rating and a $67.00 price objective on the stock. Eleven analysts have rated the stock with a Buy rating, nine have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of $71.84.

Tempus AI Stock Down 5.4%

Shares of TEM traded down $3.84 during trading hours on Monday, reaching $67.09. 2,064,455 shares of the stock traded hands, compared to its average volume of 6,224,575. The company has a current ratio of 3.30, a quick ratio of 3.16 and a debt-to-equity ratio of 3.06. The stock has a fifty day simple moving average of $66.02 and a 200 day simple moving average of $55.78. Tempus AI has a 52 week low of $40.77 and a 52 week high of $97.31. The company has a market cap of $12.10 billion, a price-to-earnings ratio of -46.67 and a beta of 3.54.

Tempus AI (NASDAQ:TEM - Get Free Report) last issued its quarterly earnings data on Thursday, July 30th. The company reported ($0.04) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.14) by $0.10. The business had revenue of $382.49 million during the quarter, compared to the consensus estimate of $379.69 million. Tempus AI had a negative net margin of 17.77% and a negative return on equity of 50.28%. The firm's quarterly revenue was up 21.6% compared to the same quarter last year. During the same period in the prior year, the firm posted ($0.22) EPS. On average, equities analysts forecast that Tempus AI will post -1.38 EPS for the current year.

Insider Buying and Selling

In related news, EVP Andrew Polovin sold 2,951 shares of Tempus AI stock in a transaction dated Thursday, September 17th. The stock was sold at an average price of $75.00, for a total value of $221,325.00. Following the completion of the sale, the executive vice president owned 135,189 shares of the company's stock, valued at approximately $10,139,175. This trade represents a 2.14% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Nadja West sold 3,000 shares of the business's stock in a transaction dated Friday, August 28th. The shares were sold at an average price of $69.00, for a total value of $207,000.00. Following the completion of the sale, the director owned 31,981 shares in the company, valued at $2,206,689. This represents a 8.58% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 1,280,965 shares of company stock worth $80,397,564 in the last quarter. 24.26% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Tempus AI

Several large investors have recently modified their holdings of the business. Sumitomo Mitsui Trust Group Inc. raised its stake in shares of Tempus AI by 23.4% during the 1st quarter. Sumitomo Mitsui Trust Group Inc. now owns 4,326,313 shares of the company's stock valued at $195,636,000 after purchasing an additional 821,490 shares during the period. Amova Asset Management Americas Inc. lifted its holdings in Tempus AI by 23.4% during the 1st quarter. Amova Asset Management Americas Inc. now owns 4,326,313 shares of the company's stock worth $195,549,000 after purchasing an additional 821,490 shares in the last quarter. Eagle Health Investments LP bought a new position in Tempus AI in the 1st quarter worth about $11,588,000. Swiss National Bank boosted its stake in Tempus AI by 0.3% in the 1st quarter. Swiss National Bank now owns 183,500 shares of the company's stock worth $8,298,000 after purchasing an additional 600 shares during the period. Finally, Aristotle Atlantic Partners LLC bought a new position in Tempus AI in the 1st quarter worth about $6,179,000. Hedge funds and other institutional investors own 24.22% of the company's stock.

About Tempus AI

Tempus AI, Inc is a technology company focused on applying artificial intelligence and data analytics to precision medicine. The company develops tools intended to help physicians make more informed treatment decisions by combining clinical information, molecular data and other health-related datasets.

Tempus provides genomic testing and diagnostic services, including sequencing and other molecular tests used primarily in oncology. Its platform also offers data and software solutions designed to support clinical research, pharmaceutical development, patient identification for clinical trials and the development of personalized treatment strategies.

Founded in 2015, Tempus is headquartered in Chicago and primarily serves healthcare providers, researchers and life sciences companies.

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