BTIG Research Forecasts Strong Price Appreciation for Tempus AI (NASDAQ:TEM) Stock

Key Points

• BTIG Research raised its price target for Tempus AI (NASDAQ:TEM) from $75.00 to $85.00, indicating a potential upside of 16.31% from the current stock price, while maintaining a "buy" rating.
• Tempus AI reported a quarterly earnings per share (EPS) of ($0.22), slightly better than analysts' expectations, with a revenue increase of 89.5% year-over-year.
• The company's stock has seen significant insider selling, with executives selling over 723,000 shares valued at approximately $49 million in the last quarter.

Tempus AI (NASDAQ:TEM - Get Free Report) had its price target raised by stock analysts at BTIG Research from $75.00 to $85.00 in a report released on Wednesday,Benzinga reports. The firm presently has a "buy" rating on the stock. BTIG Research's price target would suggest a potential upside of 16.31% from the company's current price.

Several other research firms have also recently weighed in on TEM. Needham & Company LLC reaffirmed a "buy" rating and issued a $70.00 price target on shares of Tempus AI in a report on Friday, August 8th. Guggenheim raised their price target on Tempus AI from $65.00 to $75.00 and gave the company a "buy" rating in a report on Monday, June 30th. Morgan Stanley raised their price target on Tempus AI from $65.00 to $68.00 and gave the company an "overweight" rating in a report on Tuesday, August 12th. Piper Sandler reissued a "neutral" rating on shares of Tempus AI in a report on Friday, August 8th. Finally, Bank of America raised their price objective on Tempus AI from $68.00 to $70.00 and gave the company a "neutral" rating in a report on Wednesday, June 25th. Six analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $67.64.

Tempus AI Stock Performance

Shares of TEM opened at $73.08 on Wednesday. The stock's 50-day simple moving average is $63.43 and its 200 day simple moving average is $58.88. The stock has a market capitalization of $12.70 billion, a price-to-earnings ratio of -61.41 and a beta of 4.98. The company has a debt-to-equity ratio of 2.58, a quick ratio of 1.43 and a current ratio of 1.54. Tempus AI has a 52-week low of $31.36 and a 52-week high of $91.45.

Tempus AI (NASDAQ:TEM - Get Free Report) last issued its quarterly earnings data on Friday, August 8th. The company reported ($0.22) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.23) by $0.01. The business had revenue of $314.64 million for the quarter, compared to analysts' expectations of $296.84 million. Tempus AI had a negative return on equity of 122.86% and a negative net margin of 20.98%.The firm's quarterly revenue was up 89.5% on a year-over-year basis. During the same quarter in the prior year, the firm posted ($6.86) EPS. Tempus AI has set its FY 2025 guidance at EPS. Research analysts forecast that Tempus AI will post -6.15 EPS for the current fiscal year.

Insider Buying and Selling at Tempus AI

In related news, EVP Erik Phelps sold 51,317 shares of the firm's stock in a transaction that occurred on Monday, June 16th. The stock was sold at an average price of $72.56, for a total transaction of $3,723,561.52. Following the transaction, the executive vice president directly owned 97,779 shares in the company, valued at $7,094,844.24. This trade represents a 34.42% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Jennifer A. Doudna sold 625 shares of the firm's stock in a transaction that occurred on Tuesday, July 1st. The stock was sold at an average price of $62.52, for a total value of $39,075.00. Following the transaction, the director owned 26,554 shares in the company, valued at approximately $1,660,156.08. The trade was a 2.30% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 723,039 shares of company stock worth $49,035,482 over the last quarter. Company insiders own 27.60% of the company's stock.

Institutional Investors Weigh In On Tempus AI

A number of large investors have recently made changes to their positions in TEM. Concord Wealth Partners grew its position in shares of Tempus AI by 308.0% in the 2nd quarter. Concord Wealth Partners now owns 408 shares of the company's stock worth $26,000 after buying an additional 308 shares during the last quarter. Allworth Financial LP lifted its stake in shares of Tempus AI by 5,000.0% in the 2nd quarter. Allworth Financial LP now owns 459 shares of the company's stock valued at $29,000 after purchasing an additional 450 shares during the period. Cherry Tree Wealth Management LLC purchased a new position in shares of Tempus AI in the 1st quarter valued at approximately $31,000. SouthState Corp lifted its stake in shares of Tempus AI by 3,761.5% in the 2nd quarter. SouthState Corp now owns 502 shares of the company's stock valued at $32,000 after purchasing an additional 489 shares during the period. Finally, University of Texas Texas AM Investment Management Co. purchased a new position in shares of Tempus AI in the 1st quarter valued at approximately $33,000. 24.22% of the stock is currently owned by institutional investors.

About Tempus AI

Tempus AI Inc is a technology company advancing precision medicine through the practical application of artificial intelligence principally in healthcare. The company provides AI-enabled precision medicine solutions to physicians to deliver personalized patient care and in parallel facilitates discovery, development and delivery of optimal therapeutics.

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