Insider Selling: Tempus AI (NASDAQ:TEM) CEO Sells 250,000 Shares of Stock

Key Points

• Tempus AI CEO Eric Lefkofsky sold 250,000 shares at an average price of $70.36, generating approximately $17.59 million. The Rule 10b5-1 transaction reduced his ownership by 83.33%, leaving him with 50,000 shares.
• Tempus AI shares recently traded at $77.84, with a market capitalization of about $14.05 billion. The stock has ranged from $40.77 to $91.83 over the past year.
• The company reported quarterly revenue of $382.49 million, up 21.6% year over year, and narrowed its loss to $0.04 per share versus analysts’ expected loss of $0.14. Analysts maintain a consensus “Hold” rating with an average price target of $72.47.

Tempus AI, Inc. (NASDAQ:TEM - Get Free Report) CEO Eric Lefkofsky sold 250,000 shares of the business's stock in a transaction that occurred on Tuesday, October 27th. The shares were sold at an average price of $70.36, for a total transaction of $17,590,000.00. Following the sale, the chief executive officer owned 50,000 shares of the company's stock, valued at $3,518,000. This trade represents a 83.33% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Tempus AI Price Performance

TEM stock traded up $1.23 during trading on Thursday, reaching $77.84. The company's stock had a trading volume of 4,770,696 shares, compared to its average volume of 6,170,540. Tempus AI, Inc. has a 1 year low of $40.77 and a 1 year high of $91.83. The company's fifty day moving average is $70.24 and its 200-day moving average is $56.99. The company has a quick ratio of 3.16, a current ratio of 3.30 and a debt-to-equity ratio of 3.06. The company has a market capitalization of $14.05 billion, a P/E ratio of -54.06 and a beta of 3.54.

Tempus AI (NASDAQ:TEM - Get Free Report) last announced its quarterly earnings results on Thursday, July 30th. The company reported ($0.04) EPS for the quarter, beating analysts' consensus estimates of ($0.14) by $0.10. Tempus AI had a negative return on equity of 50.28% and a negative net margin of 17.77%. The company had revenue of $382.49 million during the quarter, compared to analyst estimates of $379.69 million. During the same period in the prior year, the company earned ($0.22) earnings per share. The firm's revenue was up 21.6% on a year-over-year basis. On average, research analysts expect that Tempus AI, Inc. will post -1.43 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Tempus AI

A number of institutional investors have recently made changes to their positions in TEM. V Square Quantitative Management LLC bought a new stake in shares of Tempus AI during the 3rd quarter worth about $27,000. EMC Capital Management bought a new position in shares of Tempus AI during the second quarter valued at $29,000. Ulland Investment Advisors LLC acquired a new position in shares of Tempus AI in the 3rd quarter worth approximately $41,000. Eastern Bank bought a new stake in Tempus AI during the 3rd quarter worth about $69,000. Finally, Whittier Trust Co. lifted its holdings in Tempus AI by 190.0% during the 1st quarter. Whittier Trust Co. now owns 870 shares of the company's stock worth $41,000 after buying an additional 570 shares in the last quarter. 24.22% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of brokerages have recently weighed in on TEM. Canaccord Genuity Group increased their price objective on Tempus AI from $80.00 to $95.00 and gave the company a "buy" rating in a report on Monday, October 12th. Lake Street Capital cut shares of Tempus AI to a "hold" rating in a research note on Monday, July 20th. JPMorgan Chase & Co. raised their price target on shares of Tempus AI from $45.00 to $70.00 and gave the stock a "neutral" rating in a report on Wednesday, October 14th. Wall Street Zen upgraded Tempus AI from a "sell" rating to a "hold" rating in a research note on Saturday, July 25th. Finally, Rothschild & Co Redburn started coverage on Tempus AI in a research note on Tuesday, September 8th. They issued a "neutral" rating and a $67.00 price objective on the stock. Eleven equities research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average target price of $72.47.

Tempus AI Company Profile

Tempus AI, Inc is a healthcare technology company that uses artificial intelligence and data analytics to support precision medicine. The company combines clinical, molecular and imaging data to help physicians make more informed treatment decisions and to help researchers and biopharmaceutical companies develop therapies.

Its offerings include genomic testing and analysis, such as tissue- and blood-based tests, as well as software tools designed to assist with clinical decision-making, patient matching for clinical trials and the management of healthcare data.

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