Baker Avenue Asset Management LP Buys New Stake in Tempus AI, Inc. $TEM

Key Points

• Baker Avenue Asset Management opened a new position in Tempus AI during the fourth quarter, buying 40,091 shares worth about $2.37 million.
• Other institutional investors also remained active in TEM, with large holders like Vanguard and Geode increasing stakes; institutions and hedge funds now own about 24.22% of the company.
• Tempus AI reported quarterly results that beat estimates, posting EPS of -$0.13 versus the expected -$0.21 and revenue of $348.12 million, up 36.1% year over year.

Baker Avenue Asset Management LP acquired a new stake in shares of Tempus AI, Inc. (NASDAQ:TEM - Free Report) during the fourth quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm acquired 40,091 shares of the company's stock, valued at approximately $2,367,000.

A number of other hedge funds have also recently bought and sold shares of TEM. Vanguard Group Inc. increased its stake in shares of Tempus AI by 8.7% during the 4th quarter. Vanguard Group Inc. now owns 10,258,621 shares of the company's stock valued at $605,772,000 after acquiring an additional 817,014 shares during the last quarter. GC Wealth Management RIA LLC purchased a new stake in Tempus AI in the fourth quarter valued at approximately $399,267,000. Sumitomo Mitsui Trust Group Inc. increased its position in Tempus AI by 1.2% during the fourth quarter. Sumitomo Mitsui Trust Group Inc. now owns 3,504,823 shares of the company's stock worth $206,960,000 after purchasing an additional 41,728 shares during the last quarter. Geode Capital Management LLC raised its stake in Tempus AI by 8.2% during the fourth quarter. Geode Capital Management LLC now owns 1,870,510 shares of the company's stock worth $110,478,000 after purchasing an additional 141,680 shares during the period. Finally, Voloridge Investment Management LLC boosted its holdings in shares of Tempus AI by 183.0% in the 3rd quarter. Voloridge Investment Management LLC now owns 1,607,083 shares of the company's stock valued at $129,708,000 after purchasing an additional 1,039,176 shares during the last quarter. Institutional investors and hedge funds own 24.22% of the company's stock.

Insider Activity

In other Tempus AI news, CAO Ryan M. Bartolucci sold 4,116 shares of the company's stock in a transaction that occurred on Tuesday, May 19th. The stock was sold at an average price of $44.07, for a total value of $181,392.12. Following the completion of the sale, the chief accounting officer directly owned 74,041 shares in the company, valued at $3,262,986.87. This represents a 5.27% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, EVP Andrew Polovin sold 8,703 shares of the stock in a transaction on Tuesday, May 19th. The shares were sold at an average price of $44.07, for a total value of $383,541.21. Following the transaction, the executive vice president directly owned 128,215 shares of the company's stock, valued at approximately $5,650,435.05. The trade was a 6.36% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 392,057 shares of company stock valued at $18,835,714 over the last 90 days. Corporate insiders own 24.26% of the company's stock.

Wall Street Analyst Weigh In

Several brokerages have commented on TEM. BTIG Research dropped their price target on Tempus AI from $90.00 to $80.00 and set a "buy" rating for the company in a research note on Friday, May 8th. Wall Street Zen cut Tempus AI from a "hold" rating to a "sell" rating in a report on Saturday, February 28th. Guggenheim dropped their target price on shares of Tempus AI from $95.00 to $60.00 and set a "buy" rating for the company in a research report on Monday, March 30th. Mizuho started coverage on shares of Tempus AI in a report on Thursday, February 19th. They issued an "outperform" rating and a $100.00 price target on the stock. Finally, Morgan Stanley reduced their price target on shares of Tempus AI from $85.00 to $70.00 and set an "overweight" rating on the stock in a research report on Tuesday, March 3rd. Nine equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat, Tempus AI presently has an average rating of "Moderate Buy" and a consensus price target of $68.64.

Tempus AI Price Performance

TEM opened at $51.29 on Friday. The firm has a market cap of $9.21 billion, a price-to-earnings ratio of -29.82 and a beta of 3.99. Tempus AI, Inc. has a fifty-two week low of $41.73 and a fifty-two week high of $104.32. The company's 50-day moving average price is $48.69 and its 200 day moving average price is $58.25. The company has a quick ratio of 3.15, a current ratio of 3.31 and a debt-to-equity ratio of 2.96.

Tempus AI (NASDAQ:TEM - Get Free Report) last issued its quarterly earnings data on Tuesday, May 5th. The company reported ($0.13) EPS for the quarter, topping analysts' consensus estimates of ($0.21) by $0.08. Tempus AI had a negative return on equity of 53.83% and a negative net margin of 22.20%.The firm had revenue of $348.12 million during the quarter, compared to the consensus estimate of $345.44 million. During the same period in the prior year, the business earned ($0.24) EPS. The firm's revenue was up 36.1% on a year-over-year basis. As a group, sell-side analysts expect that Tempus AI, Inc. will post -1.35 earnings per share for the current year.

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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