Tempus AI (NASDAQ:TEM) Sees Strong Trading Volume - Here's Why

Key Points

• Tempus AI shares rose 14.1% to $79.832, with trading volume increasing slightly to 6.08 million shares from 6.04 million in the prior session.
• Analysts hold a mixed but generally cautious view: 11 rate the stock Buy, eight Hold and two Sell, resulting in a consensus “Hold” rating and an average price target of $69.33.
• The company exceeded quarterly expectations, reporting an adjusted loss of $0.04 per share versus the expected $0.14 loss and revenue of $382.49 million, up 21.6% year over year; however, insiders sold more than $56.9 million of stock over the past three months.

Tempus AI, Inc. (NASDAQ:TEM - Get Free Report) shares saw strong trading volume on Thursday . 6,078,808 shares traded hands during trading, an increase of 1% from the previous session's volume of 6,037,241 shares.The stock last traded at $79.8320 and had previously closed at $69.97.

Wall Street Analyst Weigh In

Several equities research analysts have weighed in on the company. Weiss Ratings raised Tempus AI from a "sell (e+)" rating to a "sell (d-)" rating in a report on Friday, September 11th. Roth Capital assumed coverage on shares of Tempus AI in a report on Tuesday, September 8th. They set a "neutral" rating and a $67.00 price objective on the stock. Lake Street Capital lowered shares of Tempus AI to a "hold" rating in a research report on Monday, July 20th. UBS Group began coverage on shares of Tempus AI in a research report on Wednesday, September 9th. They set a "neutral" rating and a $70.00 target price on the stock. Finally, Cantor Fitzgerald initiated coverage on shares of Tempus AI in a research report on Wednesday, September 2nd. They set an "overweight" rating and a $80.00 target price on the stock. Eleven equities research analysts have rated the stock with a Buy rating, eight have given a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, Tempus AI presently has a consensus rating of "Hold" and an average target price of $69.33.

Tempus AI Stock Up 14.1%

The firm has a market capitalization of $14.40 billion, a price-to-earnings ratio of -55.52 and a beta of 3.72. The company has a debt-to-equity ratio of 3.06, a current ratio of 3.30 and a quick ratio of 3.16. The business has a fifty day moving average price of $56.42 and a two-hundred day moving average price of $52.53.

Tempus AI (NASDAQ:TEM - Get Free Report) last released its earnings results on Thursday, July 30th. The company reported ($0.04) EPS for the quarter, topping 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 firm had revenue of $382.49 million during the quarter, compared to the consensus estimate of $379.69 million. During the same quarter in the previous year, the company posted ($0.22) earnings per share. The company's revenue was up 21.6% compared to the same quarter last year. On average, equities analysts expect that Tempus AI, Inc. will post -1.38 earnings per share for the current year.

Insiders Place Their Bets

In related news, CFO James Rogers sold 26,313 shares of the business's stock in a transaction on Wednesday, August 19th. The shares were sold at an average price of $60.00, for a total transaction of $1,578,780.00. Following the completion of the transaction, the chief financial officer directly owned 106,024 shares in the company, valued at $6,361,440. The trade was a 19.88% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Ryan Fukushima sold 14,286 shares of the company's stock in a transaction on Friday, August 21st. The shares were sold at an average price of $70.00, for a total transaction of $1,000,020.00. Following the completion of the sale, the chief executive officer directly owned 47,420 shares in the company, valued at approximately $3,319,400. The trade was a 23.15% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 1,043,988 shares of company stock worth $56,963,417. Company insiders own 24.26% of the company's stock.

Hedge Funds Weigh In On Tempus AI

Institutional investors and hedge funds have recently modified their holdings of the stock. Sumitomo Mitsui Trust Group Inc. grew its holdings in Tempus AI by 23.4% during the first quarter. Sumitomo Mitsui Trust Group Inc. now owns 4,326,313 shares of the company's stock worth $195,636,000 after acquiring an additional 821,490 shares during the period. Amova Asset Management Americas Inc. increased its holdings in shares of Tempus AI by 23.4% during the 1st quarter. Amova Asset Management Americas Inc. now owns 4,326,313 shares of the company's stock valued at $195,549,000 after purchasing an additional 821,490 shares in the last quarter. Geode Capital Management LLC increased its holdings in shares of Tempus AI by 8.2% during the 4th quarter. Geode Capital Management LLC now owns 1,870,510 shares of the company's stock valued at $110,478,000 after purchasing an additional 141,680 shares in the last quarter. Franklin Resources Inc. lifted its stake in shares of Tempus AI by 27.9% in the 4th quarter. Franklin Resources Inc. now owns 1,861,782 shares of the company's stock valued at $109,938,000 after purchasing an additional 405,662 shares during the period. Finally, Lingotto Investment Management LLP boosted its holdings in Tempus AI by 45.9% during the fourth quarter. Lingotto Investment Management LLP now owns 1,143,526 shares of the company's stock worth $67,525,000 after buying an additional 359,667 shares in the last quarter. Institutional investors and hedge funds own 24.22% of the company's stock.

Tempus AI Company Profile

Tempus AI, Inc is a healthcare technology company focused on applying artificial intelligence and data analytics to precision medicine. The company combines molecular testing, clinical data and machine learning to help physicians make more informed treatment decisions and support the development of new therapies.

Tempus provides genomic and diagnostic testing services, including testing intended to identify clinically relevant mutations and other biomarkers. Its technology platform also organizes and analyzes clinical and molecular data, while its AI-enabled tools are designed to assist healthcare professionals with patient care, research and workflow management.

The company serves healthcare providers, patients, pharmaceutical companies and biotechnology researchers, primarily in the United States.

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