Needham & Company LLC Forecasts Strong Price Appreciation for Tempus AI (NASDAQ:TEM) Stock

Key Points

• Needham raised its Tempus AI price target from $75 to $89 and maintained a “buy” rating, implying approximately 9.2% upside from the reported share price.
• Analyst sentiment is mixed: 11 analysts rate the stock a Buy, nine a Hold and two a Sell, producing a consensus “Hold” rating and average price target of $73.21.
• Tempus AI reported stronger-than-expected quarterly results, with earnings of $0.07 per share and revenue of $411.54 million, up 23.1% year over year; management maintained its approximately $65 million adjusted EBITDA outlook.

Tempus AI (NASDAQ:TEM - Get Free Report) had its price objective boosted by stock analysts at Needham & Company LLC from $75.00 to $89.00 in a research report issued to clients and investors on Monday, Benzinga reports. The firm presently has a "buy" rating on the stock. Needham & Company LLC's price target would indicate a potential upside of 9.20% from the stock's current price.

Other analysts have also issued reports about the company. JPMorgan Chase & Co. lifted their price target on Tempus AI from $45.00 to $70.00 and gave the stock a "neutral" rating in a report on Wednesday, October 14th. Guggenheim increased their target price on shares of Tempus AI from $65.00 to $92.00 and gave the company a "buy" rating in a research report on Thursday, October 1st. Piper Sandler upgraded Tempus AI from a "neutral" rating to an "overweight" rating and boosted their target price for the company from $56.00 to $76.00 in a research note on Tuesday, September 1st. TD Cowen restated a "buy" rating on shares of Tempus AI in a research note on Wednesday, July 15th. Finally, Weiss Ratings upgraded shares of Tempus AI from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Tuesday, October 13th. Eleven investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Hold" and an average target price of $73.21.

Tempus AI Price Performance

Shares of Tempus AI stock traded up $9.28 during midday trading on Monday, hitting $81.50. 8,366,052 shares of the company traded hands, compared to its average volume of 6,198,597. Tempus AI has a 12 month low of $40.77 and a 12 month high of $90.53. The company has a debt-to-equity ratio of 3.06, a quick ratio of 3.16 and a current ratio of 3.30. The stock has a market cap of $14.71 billion, a price-to-earnings ratio of -56.32 and a beta of 3.61. The firm's fifty day moving average price is $70.69 and its 200-day moving average price is $57.07.

Tempus AI (NASDAQ:TEM - Get Free Report) last announced its earnings results on Monday, November 2nd. The company reported $0.07 EPS for the quarter, beating the consensus estimate of ($0.09) by $0.16. The business had revenue of $411.54 million for the quarter, compared to analysts' expectations of $409.39 million. Tempus AI had a negative return on equity of 50.28% and a negative net margin of 17.77%. The firm's revenue was up 23.1% on a year-over-year basis. During the same period in the prior year, the business posted ($0.46) earnings per share. As a group, sell-side analysts forecast that Tempus AI will post -1.45 earnings per share for the current year.

Insider Buying and Selling

In other Tempus AI news, CAO Ryan M. Bartolucci sold 7,062 shares of the company's stock in a transaction dated Thursday, September 17th. The stock was sold at an average price of $75.00, for a total value of $529,650.00. Following the transaction, the chief accounting officer directly owned 60,804 shares in the company, valued at $4,560,300. This represents a 10.41% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Ryan Fukushima sold 700 shares of Tempus AI stock in a transaction dated Wednesday, September 16th. The shares were sold at an average price of $70.00, for a total value of $49,000.00. Following the sale, the chief executive officer owned 15,874 shares of the company's stock, valued at approximately $1,111,180. This trade represents a 4.22% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 1,256,777 shares of company stock valued at $86,356,352 in the last ninety days. 24.26% of the stock is owned by insiders.

Institutional Investors Weigh In On Tempus AI

A number of institutional investors and hedge funds have recently bought and sold shares of TEM. Sumitomo Mitsui Trust Group Inc. increased its holdings in shares of Tempus AI by 23.4% in the 1st quarter. Sumitomo Mitsui Trust Group Inc. now owns 4,326,313 shares of the company's stock worth $195,636,000 after buying an additional 821,490 shares during the last quarter. Amova Asset Management Americas Inc. lifted its holdings in shares of 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 acquiring an additional 821,490 shares during the last quarter. Eagle Health Investments LP purchased a new position in Tempus AI in the first quarter worth $11,588,000. Aristotle Atlantic Partners LLC purchased a new position in Tempus AI in the first quarter worth $6,179,000. Finally, International Assets Investment Management LLC increased its stake in Tempus AI by 3,027.6% in the third quarter. International Assets Investment Management LLC now owns 104,555 shares of the company's stock valued at $8,563,000 after acquiring an additional 101,212 shares during the last quarter. 24.22% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Tempus AI

Here are the key news stories impacting Tempus AI this week:

• Positive Sentiment: Tempus AI reported quarterly earnings of $0.07 per share, well above the consensus estimate of a $0.09 loss. Revenue increased 23.1% year over year to $411.54 million, slightly exceeding analyst expectations. The company also significantly narrowed its loss from the prior-year quarter. Tempus AI quarterly earnings report
• Positive Sentiment: The Data and Applications business grew 33% and generated gross margins above 71%. Its faster expansion is helping improve Tempus AI’s company-wide margin profile, strengthening the investment case for its higher-growth businesses. Tempus AI Revenue Up 23%; Gains Cut Net Loss
• Positive Sentiment: Management maintained its approximately $65 million adjusted EBITDA outlook. That guidance implies a substantial increase in fourth-quarter adjusted EBITDA, suggesting continued operating leverage if the company delivers. Tempus AI earnings reaction
• Positive Sentiment: Cathie Wood’s ARK Investment Management reportedly purchased approximately $11.2 million of Tempus AI stock, providing an additional signal of institutional confidence in the company’s artificial-intelligence growth prospects. Cathie Wood buys Tempus AI stock

About Tempus AI

Tempus AI, Inc is a healthcare technology company that uses artificial intelligence and data analytics to support precision medicine. The company combines clinical, molecular and imaging data to help physicians make more informed treatment decisions and to help researchers and biopharmaceutical companies develop therapies.

Its offerings include genomic testing and analysis, such as tissue- and blood-based tests, as well as software tools designed to assist with clinical decision-making, patient matching for clinical trials and the management of healthcare data.

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