Investors Buy Large Volume of Tempus AI Call Options (NASDAQ:TEM)

Key Points

• Tempus AI saw unusually heavy call option buying on Friday, with 35,062 calls traded, about 61% above its typical volume. This suggests traders were positioning for a potential upside move in the stock.
• Top executives recently sold shares: CFO James William Rogers and CEO Eric P. Lefkofsky both sold stock on May 19, mainly to cover tax withholding tied to vested equity awards. Insiders have sold 392,057 shares worth $18.8 million over the past 90 days.
• The stock traded lower but above average volume, closing at $50.53 after falling $0.77, while shares exchanged topped recent norms. Tempus AI also reported quarterly revenue growth of 36.1% year over year and beat EPS estimates, though analysts still expect a full-year loss.

Tempus AI, Inc. (NASDAQ:TEM - Get Free Report) saw some unusual options trading activity on Friday. Stock investors bought 35,062 call options on the stock. This represents an increase of approximately 61% compared to the typical volume of 21,735 call options.

Insider Activity at Tempus AI

In related news, CFO James William Rogers sold 10,853 shares of the company's stock in a transaction on Tuesday, May 19th. The shares were sold at an average price of $44.07, for a total value of $478,291.71. Following the completion of the sale, the chief financial officer owned 126,395 shares in the company, valued at $5,570,227.65. This represents a 7.91% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Eric P. Lefkofsky sold 22,335 shares of the company's stock in a transaction on Tuesday, May 19th. The shares were sold at an average price of $44.07, for a total transaction of $984,303.45. Following the completion of the sale, the chief executive officer owned 2,230,721 shares of the company's stock, valued at approximately $98,307,874.47. This represents a 0.99% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders have sold 392,057 shares of company stock worth $18,835,714. 24.26% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. JPL Wealth Management LLC bought a new stake in Tempus AI in the third quarter worth $26,000. Los Angeles Capital Management LLC bought a new stake in Tempus AI in the fourth quarter worth $27,000. Harvest Fund Management Co. Ltd bought a new stake in Tempus AI in the third quarter worth $38,000. Tsfg LLC lifted its position in Tempus AI by 1,515.2% during the 3rd quarter. Tsfg LLC now owns 533 shares of the company's stock worth $43,000 after acquiring an additional 500 shares during the last quarter. Finally, Cloud Capital Management LLC acquired a new position in Tempus AI during the 3rd quarter worth $44,000. Institutional investors own 24.22% of the company's stock.

Tempus AI Stock Performance

Shares of TEM stock traded down $0.77 during trading hours on Friday, reaching $50.53. 7,486,668 shares of the company's stock were exchanged, compared to its average volume of 5,648,612. The company has a debt-to-equity ratio of 2.96, a current ratio of 3.31 and a quick ratio of 3.15. Tempus AI has a 1 year low of $41.73 and a 1 year high of $104.32. The company's 50 day moving average is $48.69 and its two-hundred day moving average is $58.25. The company has a market cap of $9.07 billion, a P/E ratio of -29.42 and a beta of 3.99.

Tempus AI (NASDAQ:TEM - Get Free Report) last issued its earnings results on Tuesday, May 5th. The company reported ($0.13) earnings per share for the quarter, topping the consensus estimate 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 business had revenue of $348.12 million for the quarter, compared to analyst estimates of $345.44 million. During the same period last year, the company posted ($0.24) EPS. The business's quarterly revenue was up 36.1% on a year-over-year basis. Equities research analysts anticipate that Tempus AI will post -1.35 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

TEM has been the subject of several recent analyst reports. Wall Street Zen downgraded shares of Tempus AI from a "hold" rating to a "sell" rating in a research note on Saturday, February 28th. Stifel Nicolaus set a $60.00 price target on shares of Tempus AI in a report on Wednesday, February 25th. HC Wainwright decreased their price target on shares of Tempus AI from $95.00 to $64.00 and set a "buy" rating for the company in a research note on Monday, May 11th. Morgan Stanley reduced their price objective on shares of Tempus AI from $85.00 to $70.00 and set an "overweight" rating for the company in a research report on Tuesday, March 3rd. Finally, JPMorgan Chase & Co. reduced their target price on shares of Tempus AI from $80.00 to $60.00 and set a "neutral" rating for the company in a research report on Wednesday, February 25th. Nine research analysts have rated the stock with a Buy rating, three have given a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $68.64.

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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