Avidity Partners Management LP Purchases New Stake in Tempus AI, Inc. $TEM

Key Points

• Avidity Partners Management purchased a new 25,000-share stake in Tempus AI valued at approximately $1.13 million. Other institutions also increased or initiated positions, while institutional investors collectively own 24.22% of the company.
• Tempus AI’s latest results exceeded expectations, with a quarterly loss of $0.04 per share versus the $0.14 consensus estimate and revenue up 21.6% year over year to $382.5 million. However, the company remains unprofitable, and analysts project a full-year loss.
• Shares opened at $43.87, well below the 52-week high of $104.32, while analyst sentiment is mixed: the consensus rating is Hold with a $68.92 price target. Recent insider sales, including CEO Eric Lefkofsky’s $10.5 million disposal, may weigh on investor sentiment.

Avidity Partners Management LP bought a new position in shares of Tempus AI, Inc. (NASDAQ:TEM - Free Report) during the 1st quarter, according to its most recent 13F filing with the SEC. The fund bought 25,000 shares of the company's stock, valued at approximately $1,130,000.

A number of other institutional investors and hedge funds have also made changes to their positions in the stock. Aberdeen Group plc grew its stake in Tempus AI by 64.2% in the 4th quarter. Aberdeen Group plc now owns 263,004 shares of the company's stock valued at $15,530,000 after buying an additional 102,878 shares in the last quarter. Pictet Asset Management Holding SA lifted its position in shares of Tempus AI by 291.3% during the fourth quarter. Pictet Asset Management Holding SA now owns 48,488 shares of the company's stock worth $2,948,000 after acquiring an additional 36,096 shares in the last quarter. Bogart Wealth LLC boosted its holdings in shares of Tempus AI by 365,087.5% in the fourth quarter. Bogart Wealth LLC now owns 58,430 shares of the company's stock worth $3,450,000 after acquiring an additional 58,414 shares during the period. Eagle Health Investments LP bought a new position in shares of Tempus AI in the first quarter worth $11,588,000. Finally, Alethea Capital Management LLC purchased a new position in shares of Tempus AI in the fourth quarter valued at $1,863,000. 24.22% of the stock is owned by institutional investors and hedge funds.

Tempus AI Price Performance

TEM stock opened at $43.87 on Friday. The stock has a market capitalization of $7.88 billion, a price-to-earnings ratio of -30.47 and a beta of 3.46. The firm's 50-day moving average price is $51.40 and its two-hundred day moving average price is $52.70. The company has a current ratio of 3.31, a quick ratio of 3.15 and a debt-to-equity ratio of 2.96. Tempus AI, Inc. has a 12-month low of $40.77 and a 12-month high of $104.32.

Tempus AI (NASDAQ:TEM - Get Free Report) last posted its 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. The company had revenue of $382.49 million during the quarter, compared to analyst estimates of $379.69 million. Tempus AI had a negative net margin of 17.77% and a negative return on equity of 49.56%. Tempus AI's revenue for the quarter was up 21.6% on a year-over-year basis. During the same period in the prior year, the business posted ($0.22) earnings per share. As a group, equities analysts predict that Tempus AI, Inc. will post -1.35 earnings per share for the current year.

Analyst Ratings Changes

A number of analysts recently issued reports on TEM shares. Jefferies Financial Group began coverage on Tempus AI in a report on Monday, April 13th. They set an "underperform" rating and a $35.00 price objective on the stock. Weiss Ratings reiterated a "sell (e+)" rating on shares of Tempus AI in a research report on Wednesday, June 17th. Needham & Company LLC reissued a "buy" rating and issued a $75.00 price target on shares of Tempus AI in a report on Friday. HC Wainwright restated a "buy" rating on shares of Tempus AI in a research report on Friday, July 24th. Finally, Freedom Capital raised shares of Tempus AI to a "hold" rating in a research note on Tuesday, June 30th. Nine analysts have rated the stock with a Buy rating, five have given a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus price target of $68.92.

Key Headlines Impacting Tempus AI

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

• Positive Sentiment: Q2 results beat expectations. Tempus reported an adjusted loss of $0.04 per share, narrower than the $0.14 consensus loss and improved from a $0.22 loss a year earlier. Revenue increased 21.6% year over year to $382.5 million, modestly above estimates. Tempus AI Q2 earnings report
• Positive Sentiment: Management raised or reaffirmed strong 2026 growth expectations. Full-year revenue guidance is approximately $1.595 billion to $1.605 billion, supported by momentum in oncology diagnostics, data and modeling. Tempus also outlined a potential $400 million revenue uplift by 2028 tied to its xT CDx and xF products. Tempus revenue outlook
• Positive Sentiment: Analyst support remains favorable. Needham reaffirmed its Buy rating and set a $75 price target, implying substantial upside from recent trading levels. Needham analyst rating
• Negative Sentiment: The earnings beat did not fully resolve profitability concerns. Tempus remains unprofitable, with a negative net margin and analysts projecting a full-year loss. Revenue guidance is broadly consistent with expectations rather than a major upside surprise, contributing to the post-earnings reset. Tempus earnings call highlights
• Negative Sentiment: CEO Eric Lefkofsky sold 250,000 shares. The $10.5 million sale reduced his direct holdings by more than half. Although it was conducted under a pre-arranged Rule 10b5-1 plan, the transaction can still weigh on sentiment, particularly while the stock trades well below its 52-week high. Tempus CEO stock sale

Insiders Place Their Bets

In other news, CEO Ryan Fukushima sold 33,284 shares of the stock in a transaction that occurred on Wednesday, July 8th. The stock was sold at an average price of $57.39, for a total value of $1,910,168.76. Following the completion of the transaction, the chief executive officer owned 167,763 shares of the company's stock, valued at approximately $9,627,918.57. This represents a 16.56% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Eric P. Lefkofsky sold 250,000 shares of the stock in a transaction that occurred on Tuesday, July 28th. The stock was sold at an average price of $42.06, for a total value of $10,515,000.00. Following the completion of the transaction, the chief executive officer directly owned 200,000 shares of the company's stock, valued at $8,412,000. This represents a 55.56% 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. In the last quarter, insiders have sold 699,793 shares of company stock worth $33,763,231. Insiders own 24.26% of the company's stock.

Tempus AI 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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