Tempus AI (NASDAQ:TEM) Now Covered by Analysts at UBS Group

Key Points

• UBS initiated coverage of Tempus AI with a “neutral” rating and a $70 price target, implying 8.88% potential upside from the reported current price.
• Analyst sentiment is mixed but averages to “Hold”: 11 analysts rate the stock Buy, eight Hold and two Sell, with an average price target of $68.78.
• Tempus AI reported quarterly revenue of $382.49 million, up 21.6% year over year, and an adjusted EPS loss of $0.04 that beat estimates. However, the company remains unprofitable, with a negative net margin of 17.77%.

Research analysts at UBS Group began coverage on shares of Tempus AI (NASDAQ:TEM - Get Free Report) in a report released on Wednesday, MarketBeat reports. The brokerage set a "neutral" rating and a $70.00 price target on the stock. UBS Group's price objective points to a potential upside of 8.88% from the stock's current price.

Several other equities analysts have also weighed in on TEM. Freedom Capital upgraded shares of Tempus AI to a "hold" rating in a report on Tuesday, June 30th. Lake Street Capital cut Tempus AI to a "hold" rating in a research note on Monday, July 20th. Wall Street Zen upgraded Tempus AI from a "sell" rating to a "hold" rating in a research report on Saturday, July 25th. Roth Capital began coverage on Tempus AI in a report on Tuesday. They set a "neutral" rating and a $67.00 price target for the company. Finally, Stifel Nicolaus reduced their price objective on shares of Tempus AI from $60.00 to $50.00 and set a "hold" rating on the stock in a report on Monday, August 3rd. Eleven analysts have rated the stock with a Buy rating, eight have issued a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Hold" and an average price target of $68.78.

Tempus AI Price Performance

Tempus AI stock opened at $64.29 on Wednesday. The company has a fifty day simple moving average of $56.03 and a 200-day simple moving average of $52.27. The firm has a market capitalization of $11.60 billion, a price-to-earnings ratio of -44.65 and a beta of 3.72. The company has a quick ratio of 3.16, a current ratio of 3.30 and a debt-to-equity ratio of 3.06. Tempus AI has a 52-week low of $40.77 and a 52-week high of $104.32.

Tempus AI (NASDAQ:TEM - Get Free Report) last released its quarterly earnings data on Thursday, July 30th. The company reported ($0.04) EPS for the quarter, beating analysts' consensus estimates of ($0.14) by $0.10. The company 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%. Tempus AI's quarterly revenue was up 21.6% on a year-over-year basis. During the same quarter in the prior year, the firm earned ($0.22) EPS. On average, equities analysts anticipate that Tempus AI will post -1.38 EPS for the current fiscal year.

Insider Transactions at Tempus AI

In other news, EVP Andrew Polovin sold 22,148 shares of the firm's stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $49.61, for a total transaction of $1,098,762.28. Following the completion of the transaction, the executive vice president directly owned 146,067 shares in the company, valued at $7,246,383.87. This trade represents a 13.17% decrease in their ownership of the stock. 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, CEO Eric Lefkofsky sold 250,000 shares of Tempus AI stock in a transaction on Tuesday, July 28th. The shares were sold at an average price of $42.06, for a total value of $10,515,000.00. Following the completion of the sale, the chief executive officer directly owned 200,000 shares of the company's stock, valued at $8,412,000. The trade was a 55.56% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 1,043,988 shares of company stock valued at $56,963,417. Corporate insiders own 24.26% of the company's stock.

Hedge Funds Weigh In On Tempus AI

Several institutional investors have recently bought and sold shares of TEM. JPL Wealth Management LLC purchased a new position in shares of Tempus AI in the third quarter valued at approximately $26,000. Los Angeles Capital Management LLC purchased a new stake in Tempus AI during the 4th quarter worth approximately $27,000. EMC Capital Management acquired a new stake in Tempus AI during the 2nd quarter worth approximately $29,000. Harvest Fund Management Co. Ltd acquired a new stake in Tempus AI during the 3rd quarter worth approximately $38,000. Finally, Whittier Trust Co. boosted its position in Tempus AI by 190.0% in the 1st quarter. Whittier Trust Co. now owns 870 shares of the company's stock valued at $41,000 after buying an additional 570 shares during the period. 24.22% of the stock is owned by institutional investors and hedge funds.

About Tempus AI

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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