Insider Selling: Tempus AI (NASDAQ:TEM) CEO Sells 332,500 Shares of Stock

Key Points

• Tempus AI CEO Eric Lefkofsky sold 332,500 shares of the company’s stock at an average price of $76.56, totaling approximately $25.46 million, resulting in a 3.51% reduction in his ownership stake.
• Despite the insider selling, several analysts have issued positive ratings and increased price targets for Tempus AI, with Guggenheim raising its target from $80.00 to $95.00 and HC Wainwright from $90.00 to $98.00.
• Tempus AI reported an 89.5% year-over-year revenue increase, reaching $314.64 million, and achieved a slight earnings beat with an EPS of ($0.22), edging out the consensus estimate of ($0.23).

Tempus AI, Inc. (NASDAQ:TEM - Get Free Report) CEO Eric Lefkofsky sold 332,500 shares of the firm's stock in a transaction on Thursday, September 25th. The stock was sold at an average price of $76.56, for a total value of $25,456,200.00. Following the sale, the chief executive officer directly owned 9,141,032 shares of the company's stock, valued at approximately $699,837,409.92. This represents a 3.51% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink.

Tempus AI Price Performance

Shares of TEM traded up $0.09 during trading hours on Monday, hitting $78.57. 5,701,755 shares of the company were exchanged, compared to its average volume of 12,128,321. The company has a market capitalization of $13.65 billion, a PE ratio of -66.03 and a beta of 5.07. The company has a debt-to-equity ratio of 2.58, a current ratio of 1.54 and a quick ratio of 1.43. The firm has a fifty day simple moving average of $72.65 and a 200-day simple moving average of $62.07. Tempus AI, Inc. has a one year low of $31.36 and a one year high of $97.79.

Tempus AI (NASDAQ:TEM - Get Free Report) last issued its earnings results on Friday, August 8th. The company reported ($0.22) EPS for the quarter, topping the consensus estimate of ($0.23) by $0.01. The business had revenue of $314.64 million during 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%.Tempus AI's revenue was up 89.5% compared to the same quarter last year. During the same quarter last year, the firm posted ($6.86) earnings per share. Tempus AI has set its FY 2025 guidance at EPS. As a group, sell-side analysts predict that Tempus AI, Inc. will post -6.15 earnings per share for the current year.

Wall Street Analysts Forecast Growth

A number of research firms recently issued reports on TEM. Guggenheim lifted their price objective on Tempus AI from $80.00 to $95.00 and gave the company a "buy" rating in a research report on Friday. HC Wainwright lifted their price objective on Tempus AI from $90.00 to $98.00 and gave the company a "buy" rating in a research report on Friday, September 12th. BTIG Research raised their target price on Tempus AI from $75.00 to $85.00 and gave the company a "buy" rating in a report on Wednesday, August 20th. Piper Sandler restated a "neutral" rating on shares of Tempus AI in a report on Friday, August 8th. Finally, Needham & Company LLC restated a "buy" rating and set a $70.00 target price on shares of Tempus AI in a report on Friday, August 8th. Seven investment analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $71.83.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. ARK Investment Management LLC raised its position in Tempus AI by 35.9% in the first quarter. ARK Investment Management LLC now owns 7,501,399 shares of the company's stock worth $361,867,000 after purchasing an additional 1,981,755 shares in the last quarter. Vanguard Group Inc. raised its position in Tempus AI by 6,247.5% in the first quarter. Vanguard Group Inc. now owns 5,995,117 shares of the company's stock worth $289,204,000 after purchasing an additional 5,900,668 shares in the last quarter. Nikko Asset Management Americas Inc. raised its position in Tempus AI by 31.5% in the first quarter. Nikko Asset Management Americas Inc. now owns 4,260,553 shares of the company's stock worth $205,401,000 after purchasing an additional 1,021,460 shares in the last quarter. Sumitomo Mitsui Trust Group Inc. raised its position in Tempus AI by 31.4% in the first quarter. Sumitomo Mitsui Trust Group Inc. now owns 4,255,477 shares of the company's stock worth $205,284,000 after purchasing an additional 1,016,384 shares in the last quarter. Finally, AQR Capital Management LLC acquired a new position in Tempus AI in the second quarter worth about $54,020,000. Institutional investors and hedge funds own 24.22% 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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