ARK Investment Management LLC Acquires 1,981,755 Shares of Tempus AI, Inc. (NASDAQ:TEM)

Key Points

• ARK Investment Management increased its stake in Tempus AI by 35.9% to a total of 7,501,399 shares, making it the firm's 8th largest position.
• Analysts have given Tempus AI an average rating of "Moderate Buy" with a target price of $65.09, with several brokerages setting price targets between $60.00 and $75.00.
• Tempus AI reported a negative net margin of 88.27% despite a 75.4% annual revenue increase, showcasing significant financial challenges alongside growth.

ARK Investment Management LLC grew its holdings in shares of Tempus AI, Inc. (NASDAQ:TEM - Free Report) by 35.9% in the first quarter, according to its most recent filing with the SEC. The firm owned 7,501,399 shares of the company's stock after acquiring an additional 1,981,755 shares during the quarter. Tempus AI comprises approximately 3.6% of ARK Investment Management LLC's holdings, making the stock its 8th largest position. ARK Investment Management LLC owned approximately 4.36% of Tempus AI worth $361,867,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds also recently modified their holdings of the business. Cherry Tree Wealth Management LLC acquired a new position in shares of Tempus AI during the first quarter valued at approximately $31,000. Operose Advisors LLC bought a new position in Tempus AI during the 4th quarter valued at $25,000. Bartlett & CO. Wealth Management LLC boosted its stake in Tempus AI by 100.0% during the 1st quarter. Bartlett & CO. Wealth Management LLC now owns 800 shares of the company's stock valued at $39,000 after purchasing an additional 400 shares in the last quarter. Continuum Advisory LLC acquired a new position in shares of Tempus AI during the 1st quarter valued at $39,000. Finally, Signaturefd LLC bought a new stake in shares of Tempus AI in the 1st quarter worth $48,000. Institutional investors own 24.22% of the company's stock.

Analysts Set New Price Targets

Several brokerages recently weighed in on TEM. Needham & Company LLC reaffirmed a "buy" rating and set a $70.00 target price on shares of Tempus AI in a research note on Wednesday, May 7th. Morgan Stanley raised their price objective on shares of Tempus AI from $60.00 to $65.00 and gave the company an "overweight" rating in a research report on Friday, May 9th. Guggenheim lifted their price objective on shares of Tempus AI from $65.00 to $75.00 and gave the stock a "buy" rating in a research note on Monday, June 30th. BTIG Research assumed coverage on shares of Tempus AI in a research note on Monday, April 21st. They set a "buy" rating and a $60.00 target price for the company. Finally, Bank of America lifted their price target on shares of Tempus AI from $68.00 to $70.00 and gave the stock a "neutral" rating in a research report on Wednesday, June 25th. Six analysts have rated the stock with a hold rating and six have assigned a buy rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $65.09.

Tempus AI Stock Up 1.8%

TEM stock opened at $64.49 on Friday. The company has a debt-to-equity ratio of 2.45, a current ratio of 1.71 and a quick ratio of 1.56. The firm has a market capitalization of $11.16 billion and a P/E ratio of -8.27. Tempus AI, Inc. has a 52-week low of $31.36 and a 52-week high of $91.45. The company's 50 day simple moving average is $62.80 and its 200-day simple moving average is $56.51.

Tempus AI (NASDAQ:TEM - Get Free Report) last posted its quarterly earnings data on Tuesday, May 6th. The company reported ($0.24) earnings per share for the quarter, topping the consensus estimate of ($0.27) by $0.03. The firm had revenue of $255.74 million for the quarter, compared to analysts' expectations of $248.13 million. Tempus AI had a negative net margin of 88.27% and a negative return on equity of 533.21%. Tempus AI's revenue was up 75.4% on a year-over-year basis. As a group, equities research analysts anticipate that Tempus AI, Inc. will post -6.15 EPS for the current year.

Insider Buying and Selling at Tempus AI

In other news, Director Theodore Leonsis sold 205,847 shares of the company's stock in a transaction dated Wednesday, June 11th. The stock was sold at an average price of $67.66, for a total value of $13,927,608.02. Following the transaction, the director owned 15,511 shares in the company, valued at $1,049,474.26. This represents a 92.99% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Eric P. Lefkofsky sold 250,000 shares of the stock in a transaction that occurred on Tuesday, June 17th. The stock was sold at an average price of $70.07, for a total transaction of $17,517,500.00. Following the completion of the sale, the chief executive officer directly owned 9,357,283 shares of the company's stock, valued at $655,664,819.81. This trade represents a 2.60% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 612,522 shares of company stock valued at $41,600,238 in the last ninety days. Company insiders own 27.60% of the company's stock.

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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