Needham & Company LLC Reaffirms Buy Rating for Tempus AI (NASDAQ:TEM)

Key Points

• Needham reaffirmed its Buy rating on Tempus AI and maintained a $75 price target, implying roughly 69% upside from the stock’s cited $44.29 opening price.
• Tempus reported a better-than-expected quarter, with an adjusted loss of $0.04 per share versus the $0.14 consensus estimate and revenue of $382.49 million, up 21.6% year over year.
• Analyst sentiment remains mixed despite the bullish outlook: MarketBeat’s consensus rating is Hold with an average $68.92 target, while substantial insider selling and the stock’s decline from its $104.32 52-week high may weigh on investor confidence.

Tempus AI (NASDAQ:TEM - Get Free Report)'s stock had its "buy" rating reaffirmed by equities researchers at Needham & Company LLC in a research report issued on Friday,Benzinga reports. They currently have a $75.00 target price on the stock. Needham & Company LLC's target price would indicate a potential upside of 69.34% from the company's current price.

TEM has been the subject of several other reports. Wolfe Research started coverage on shares of Tempus AI in a report on Tuesday, June 2nd. They issued a "peer perform" rating for the company. Lake Street Capital cut shares of Tempus AI to a "hold" rating in a research report on Monday, July 20th. BTIG Research reaffirmed a "buy" rating and issued a $80.00 target price on shares of Tempus AI in a research report on Monday, June 1st. HC Wainwright reissued a "buy" rating on shares of Tempus AI in a research note on Friday, July 24th. Finally, Weiss Ratings restated a "sell (e+)" rating on shares of Tempus AI in a research report on Wednesday, June 17th. Nine equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat, Tempus AI currently has an average rating of "Hold" and an average price target of $68.92.

Tempus AI Stock Performance

TEM opened at $44.29 on Friday. The firm has a market cap of $7.95 billion, a PE ratio of -25.75 and a beta of 3.46. 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 business has a fifty day simple moving average of $51.45 and a 200-day simple moving average of $52.77. Tempus AI has a fifty-two week low of $40.77 and a fifty-two week high of $104.32.

Tempus AI (NASDAQ:TEM - Get Free Report) last announced its earnings results on Thursday, July 30th. The company reported ($0.04) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.14) by $0.10. Tempus AI had a negative return on equity of 53.83% and a negative net margin of 22.20%.The company had revenue of $382.49 million for the quarter, compared to analyst estimates of $379.69 million. During the same period in the previous year, the firm earned ($0.22) earnings per share. Tempus AI's revenue for the quarter was up 21.6% compared to the same quarter last year. As a group, equities analysts predict that Tempus AI will post -1.35 EPS for the current fiscal year.

Insider Buying and Selling at Tempus AI

In other news, Director Jennifer A. Doudna sold 2,673 shares of the firm's stock in a transaction dated Thursday, June 25th. The stock was sold at an average price of $55.00, for a total transaction of $147,015.00. Following the completion of the sale, the director directly owned 25,942 shares of the company's stock, valued at $1,426,810. This trade represents a 9.34% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Ryan Fukushima sold 33,284 shares of Tempus AI stock in a transaction dated Wednesday, July 8th. The shares were sold at an average price of $57.39, for a total value of $1,910,168.76. Following the sale, the chief executive officer owned 167,763 shares of the company's stock, valued at approximately $9,627,918.57. This represents a 16.56% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 699,793 shares of company stock valued at $33,763,231 in the last quarter. Corporate insiders own 24.26% of the company's stock.

Institutional Trading of Tempus AI

A number of institutional investors have recently added to or reduced their stakes in the business. JPL Wealth Management LLC bought a new position in shares of Tempus AI during the 3rd quarter valued at $26,000. Los Angeles Capital Management LLC bought a new position in Tempus AI during the fourth quarter valued at about $27,000. Harvest Fund Management Co. Ltd bought a new stake in shares of Tempus AI during the 3rd quarter worth about $38,000. Whittier Trust Co. increased its holdings in shares of Tempus AI by 190.0% during the 1st quarter. Whittier Trust Co. now owns 870 shares of the company's stock valued at $41,000 after acquiring an additional 570 shares during the last quarter. Finally, Lodestone Wealth Management LLC bought a new position in shares of Tempus AI in the 4th quarter valued at approximately $42,000. 24.22% of the stock is currently owned by institutional investors and hedge funds.

More Tempus AI News

Here are the key news stories impacting Tempus AI this week:

• Positive Sentiment: Q2 earnings beat expectations. Tempus reported an adjusted loss of $0.04 per share, narrower than the $0.14 consensus estimate and the $0.22 loss recorded a year earlier. Revenue rose 21.6% year over year to $382.49 million, slightly exceeding analysts’ $379.69 million forecast. Tempus AI Q2 earnings report
• Positive Sentiment: Diagnostics and AI initiatives are driving momentum. Management described strong growth in Oncology Diagnostics and other major businesses, citing investments in artificial intelligence, data and modeling capabilities as key contributors. The company also outlined potential long-term growth from its xT CDx and xF products, including a projected $400 million revenue uplift by 2028. Tempus Reports Second Quarter 2026 Results
• Neutral Sentiment: 2026 revenue guidance remains broadly in line with expectations. Tempus reaffirmed a full-year revenue outlook of approximately $1.595 billion to $1.605 billion, near the $1.6 billion analyst consensus. While the outlook supports continued expansion, it provides limited incremental upside versus current estimates. Tempus 2026 revenue guidance
• Negative Sentiment: CEO insider selling may weigh on sentiment. Chief Executive Officer Eric Lefkofsky sold 250,000 shares for approximately $10.5 million, reducing his direct ownership by 55.56% to 200,000 shares. The transaction was conducted under a pre-arranged Rule 10b5-1 plan, which reduces its significance as a discretionary signal, but the sizable sale could still concern investors. Eric Lefkofsky Tempus AI insider sale

Tempus AI Company Profile

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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