Tempus AI (NASDAQ:TEM) Coverage Initiated by Analysts at Cantor Fitzgerald

Key Points

• Cantor Fitzgerald initiated coverage of Tempus AI with an “overweight” rating and an $80 price target, implying 28.47% upside from the prior close.
• Analyst sentiment is broadly positive: 11 analysts rate the stock Buy, five Hold, and two Sell, producing a “Moderate Buy” consensus rating and an average target of $68.14.
• Tempus AI’s latest quarter exceeded expectations, with adjusted EPS of $(0.04) versus $(0.14) expected and revenue of $382.49 million, up 21.6% year over year; however, the company remains unprofitable and insiders have sold more than $56.9 million in stock over the past 90 days.

Investment analysts at Cantor Fitzgerald initiated coverage on shares of Tempus AI (NASDAQ:TEM - Get Free Report) in a research note issued on Wednesday, MarketBeat.com reports. The firm set an "overweight" rating and a $80.00 price target on the stock. Cantor Fitzgerald's price target points to a potential upside of 28.47% from the company's previous close.

Several other research firms have also weighed in on TEM. Piper Sandler upgraded Tempus AI from a "neutral" rating to an "overweight" rating and lifted their target price for the stock from $56.00 to $76.00 in a report on Tuesday. Stifel Nicolaus dropped their price target on Tempus AI from $60.00 to $50.00 and set a "hold" rating on the stock in a research report on Monday, August 3rd. BTIG Research lifted their price objective on Tempus AI from $70.00 to $80.00 and gave the company a "buy" rating in a report on Thursday, August 20th. Wall Street Zen upgraded Tempus AI from a "sell" rating to a "hold" rating in a research report on Saturday, July 25th. Finally, Needham & Company LLC reissued a "buy" rating and set a $75.00 target price on shares of Tempus AI in a research note on Friday, July 31st. Eleven investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $68.14.

Tempus AI Trading Down 1.2%

TEM opened at $62.27 on Wednesday. The firm's fifty day moving average is $55.21 and its two-hundred day moving average is $51.87. 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 firm has a market cap of $11.24 billion, a PE ratio of -43.24 and a beta of 3.71. Tempus AI has a twelve month low of $40.77 and a twelve month high of $104.32.

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

Insider Transactions at Tempus AI

In other news, EVP Andrew Polovin sold 7,927 shares of the stock in a transaction dated Wednesday, August 19th. The shares were sold at an average price of $56.00, for a total transaction of $443,912.00. Following the completion of the transaction, the executive vice president directly owned 138,140 shares in the company, valued at $7,735,840. This represents a 5.43% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO James William Rogers sold 26,313 shares of the firm's stock in a transaction dated Wednesday, August 19th. The shares were sold at an average price of $60.00, for a total value of $1,578,780.00. Following the completion of the transaction, the chief financial officer owned 106,024 shares of the company's stock, valued at $6,361,440. The trade was a 19.88% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders sold 1,043,988 shares of company stock worth $56,963,417. 24.26% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the stock. Victory Capital Management Inc. increased its position in shares of Tempus AI by 1.5% during the 3rd quarter. Victory Capital Management Inc. now owns 11,078 shares of the company's stock worth $894,000 after purchasing an additional 162 shares during the last quarter. Truist Financial Corp grew its stake in shares of Tempus AI by 5.8% in the fourth quarter. Truist Financial Corp now owns 3,532 shares of the company's stock valued at $209,000 after buying an additional 194 shares in the last quarter. SeaCrest Wealth Management LLC increased its holdings in Tempus AI by 3.7% during the third quarter. SeaCrest Wealth Management LLC now owns 6,488 shares of the company's stock worth $524,000 after buying an additional 229 shares during the last quarter. Northwestern Mutual Wealth Management Co. raised its position in Tempus AI by 64.5% during the third quarter. Northwestern Mutual Wealth Management Co. now owns 653 shares of the company's stock worth $53,000 after acquiring an additional 256 shares in the last quarter. Finally, Pathstone Holdings LLC raised its position in Tempus AI by 1.4% during the third quarter. Pathstone Holdings LLC now owns 18,338 shares of the company's stock worth $1,480,000 after acquiring an additional 261 shares in the last quarter. 24.22% of the stock is owned by institutional investors and hedge funds.

Tempus AI Company Profile

Tempus is a technology-driven healthcare company that applies artificial intelligence and machine learning to clinical and molecular data in order to advance precision medicine. Its primary focus lies in oncology, where the company offers comprehensive genomic profiling, digital pathology services and data-driven insights to inform personalized cancer care. By integrating DNA and RNA sequencing with structured clinical information, Tempus enables clinicians and researchers to identify targeted treatment options for patients based on the genetic characteristics of their tumors.

The company's core offering centers on a scalable, cloud-based analytics platform that aggregates vast amounts of molecular and clinical data.

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