Investors Purchase High Volume of Call Options on Tempus AI (NASDAQ:TEM)

Key Points

• Tempus AI saw unusual options activity on Thursday, with investors buying 33,967 call options — about 37% above its average volume.
• Company insiders have recently been selling shares, including CAO Ryan M. Bartolucci and CEO Ryan Fukushima, both in transactions tied to tax withholding on vested equity awards.
• The stock rose to $54.51 after the earnings report, where Tempus AI beat EPS and revenue estimates, though analysts still expect the company to post a full-year loss.

Tempus AI, Inc. (NASDAQ:TEM - Get Free Report) was the recipient of some unusual options trading activity on Thursday. Stock investors purchased 33,967 call options on the stock. This represents an increase of 37% compared to the average volume of 24,823 call options.

Insider Activity

In other news, CAO Ryan M. Bartolucci sold 4,116 shares of the firm's stock in a transaction dated 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 transaction, the chief accounting officer owned 74,041 shares in the company, valued at $3,262,986.87. This trade represents a 5.27% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Ryan Fukushima sold 13,550 shares of Tempus AI stock in a transaction dated Tuesday, May 19th. The shares were sold at an average price of $44.07, for a total value of $597,148.50. Following the completion of the sale, the chief executive officer directly owned 603,558 shares in the company, valued at approximately $26,598,801.06. This represents a 2.20% decrease in their position. 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. Over the last ninety days, insiders sold 392,307 shares of company stock worth $18,901,264. 24.26% of the stock is currently owned by company insiders.

Institutional Trading of Tempus AI

A number of hedge funds have recently modified their holdings of the stock. NewEdge Advisors LLC grew its stake in Tempus AI by 1.3% in the 1st quarter. NewEdge Advisors LLC now owns 42,996 shares of the company's stock valued at $1,944,000 after buying an additional 536 shares during the last quarter. Avidity Partners Management LP acquired a new position in shares of Tempus AI in the first quarter valued at approximately $1,130,000. Silverback Asset Management LLC grew its position in shares of Tempus AI by 44.5% in the first quarter. Silverback Asset Management LLC now owns 35,700 shares of the company's stock valued at $1,614,000 after purchasing an additional 11,000 shares during the last quarter. Vestor Capital LLC increased its stake in shares of Tempus AI by 338.2% during the first quarter. Vestor Capital LLC now owns 1,538 shares of the company's stock worth $70,000 after purchasing an additional 1,187 shares during the period. Finally, Arkadios Wealth Advisors increased its stake in shares of Tempus AI by 9.6% during the first quarter. Arkadios Wealth Advisors now owns 4,963 shares of the company's stock worth $224,000 after purchasing an additional 435 shares during the period. Institutional investors and hedge funds own 24.22% of the company's stock.

Tempus AI Stock Performance

Shares of TEM stock traded up $2.57 during trading on Thursday, reaching $54.51. 4,905,007 shares of the company's stock were exchanged, compared to its average volume of 5,914,523. The company has a quick ratio of 3.15, a current ratio of 3.31 and a debt-to-equity ratio of 2.96. The stock has a market capitalization of $9.79 billion, a PE ratio of -31.73 and a beta of 3.62. Tempus AI has a twelve month low of $41.73 and a twelve month high of $104.32. The firm's fifty day moving average price is $49.97 and its 200-day moving average price is $55.23.

Tempus AI (NASDAQ:TEM - Get Free Report) last posted its quarterly earnings results on Tuesday, May 5th. The company reported ($0.13) earnings per share for the quarter, beating 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 business had revenue of $348.12 million for the quarter, compared to analysts' expectations of $345.44 million. During the same quarter in the prior year, the business earned ($0.24) EPS. The firm's revenue for the quarter was up 36.1% on a year-over-year basis. As a group, sell-side analysts anticipate that Tempus AI will post -1.35 EPS for the current year.

Analyst Ratings Changes

A number of research analysts have weighed in on the company. Morgan Stanley decreased their price target on Tempus AI from $85.00 to $70.00 and set an "overweight" rating for the company in a research note on Tuesday, March 3rd. Wall Street Zen raised shares of Tempus AI from a "sell" rating to a "hold" rating in a research note on Saturday, June 6th. Needham & Company LLC restated a "buy" rating and set a $75.00 target price on shares of Tempus AI in a report on Monday, June 1st. Jefferies Financial Group assumed coverage on shares of Tempus AI in a research report on Monday, April 13th. They set an "underperform" rating and a $35.00 price target on the stock. Finally, JPMorgan Chase & Co. cut their price target on shares of Tempus AI from $80.00 to $60.00 and set a "neutral" rating for the company in a research note on Wednesday, February 25th. Nine research analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $68.54.

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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