Tempus AI (NASDAQ:TEM) Shares Cross Above 50 Day Moving Average - Here's Why

Key Points

• Tempus AI shares rose above their 50-day moving average, reaching $72.89 and last trading at $72.15, compared with a 50-day average of $69.70.
• The company announced agreements with Bristol Myers Squibb and Pathos expected to generate approximately $192.5 million in cash payments over five years, while its xR RNA-sequencing assay received EU IVDR Class C certification.
• Investor sentiment is mixed: BTIG maintains a buy rating and an $80 target, but Tempus remains unprofitable, faces uncertainty around its proposed $1.5 billion Personalis acquisition, and has seen significant insider selling.

Shares of Tempus AI, Inc. (NASDAQ:TEM - Get Free Report) passed above its 50 day moving average during trading on Tuesday. The stock has a 50 day moving average of $69.70 and traded as high as $72.89. Tempus AI shares last traded at $72.15, with a volume of 5,070,135 shares traded.

Tempus AI News Roundup

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

• Positive Sentiment: Large Bristol Myers Squibb and Pathos agreement: Tempus disclosed agreements expected to provide approximately $192.5 million in aggregate cash payments over about five years. The oncology portion gives Bristol Myers Squibb access to Tempus’ multimodal oncology data, Lens software and related analytical services through 2031, strengthening the company’s recurring data and applications revenue outlook. Tempus AI Gains After New Bristol Myers Deal and EU Diagnostic Certification
• Positive Sentiment: European regulatory milestone: Tempus’ xR RNA-sequencing assay received EU IVDR Class C certification for solid-tumor genomic profiling. The certification may support broader adoption of the diagnostic in Europe and enhance the credibility of Tempus’ clinical testing business. Tempus Receives IVDR Certification for xR RNA Sequencing
• Positive Sentiment: Analyst support and earnings expectations: BTIG reaffirmed its buy rating and an $80 price target. Analysts are also expecting Tempus to potentially exceed consensus estimates in the upcoming report, which could provide another catalyst if revenue growth and cash management meet expectations. Tempus AI Expected to Beat Earnings Estimates
• Neutral Sentiment: Personalis acquisition remains an important uncertainty: Tempus has a pending approximately $1.5 billion deal for Personalis. Investors may look to the earnings report for updates on closing, financing and the strategic benefits of the transaction. The $1.5 Billion Question Facing Tempus AI Ahead of Nov. 2 Earnings
• Negative Sentiment: Profitability and dilution concerns persist: Tempus remains unprofitable, and continued cash burn could pressure the valuation or require additional financing. In addition, reported insider activity over the past six months consisted entirely of sales, including substantial selling by senior executives, which may weigh on investor sentiment. What Happens To Tempus AI Stock If Its Cash Burn Continues?

Analysts Set New Price Targets

Several brokerages recently commented on TEM. UBS Group started coverage on shares of Tempus AI in a report on Wednesday, September 9th. They set a "neutral" rating and a $70.00 target price for the company. Freedom Capital upgraded shares of Tempus AI to a "hold" rating in a research note on Tuesday, June 30th. Lake Street Capital cut shares of Tempus AI to a "hold" rating in a research report on Monday, July 20th. BTIG Research restated a "buy" rating and set a $80.00 price objective on shares of Tempus AI in a research note on Monday. Finally, Guggenheim increased their price objective on shares of Tempus AI from $65.00 to $92.00 and gave the stock a "buy" rating in a research note on Thursday, October 1st. Eleven analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat, Tempus AI presently has a consensus rating of "Hold" and an average target price of $72.47.

Tempus AI Stock Performance

The stock has a market cap of $13.02 billion, a price-to-earnings ratio of -50.10 and a beta of 3.54. The company has a 50-day simple moving average of $69.70 and a two-hundred day simple moving average of $56.95.

Tempus AI (NASDAQ:TEM - Get Free Report) last released its quarterly earnings data on Thursday, July 30th. The company reported ($0.04) EPS for the quarter, beating the consensus estimate of ($0.14) by $0.10. The company had revenue of $382.49 million during the quarter, compared to analyst estimates of $379.69 million. During the same period in the previous year, the company posted ($0.22) EPS. The company's quarterly revenue was up 21.6% compared to the same quarter last year. As a group, sell-side analysts predict that Tempus AI, Inc. will post -1.43 earnings per share for the current fiscal year.

Insider Activity

In other news, CEO Ryan Fukushima sold 700 shares of Tempus AI stock in a transaction dated Wednesday, September 16th. The shares were sold at an average price of $70.00, for a total value of $49,000.00. Following the completion of the transaction, the chief executive officer owned 15,874 shares of the company's stock, valued at $1,111,180. This trade represents a 4.22% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Andrew Polovin sold 2,951 shares of the business's stock in a transaction dated Thursday, September 17th. The stock was sold at an average price of $75.00, for a total transaction of $221,325.00. Following the transaction, the executive vice president owned 135,189 shares in the company, valued at $10,139,175. This represents a 2.14% 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. In the last three months, insiders sold 1,030,965 shares of company stock valued at $69,882,564. 24.26% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Tempus AI

Several hedge funds have recently bought and sold shares of the company. Sumitomo Mitsui Trust Group Inc. increased its position 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 buying an additional 821,490 shares during the last quarter. Amova Asset Management Americas Inc. lifted its position in shares of Tempus AI by 23.4% in the first quarter. Amova Asset Management Americas Inc. now owns 4,326,313 shares of the company's stock valued at $195,549,000 after buying an additional 821,490 shares during the last quarter. Eagle Health Investments LP acquired a new stake in shares of Tempus AI in the first quarter valued at approximately $11,588,000. Washington Trust Advisors Inc. lifted its position in shares of Tempus AI by 35.7% in the third quarter. Washington Trust Advisors Inc. now owns 121,039 shares of the company's stock valued at $9,913,000 after buying an additional 31,873 shares during the last quarter. Finally, Swiss National Bank boosted its stake in shares of Tempus AI by 0.3% during the 1st quarter. Swiss National Bank now owns 183,500 shares of the company's stock worth $8,298,000 after acquiring an additional 600 shares during the period. 24.22% of the stock is currently owned by institutional investors and hedge funds.

About Tempus AI

Tempus AI, Inc is a healthcare technology company that uses artificial intelligence and data analytics to support precision medicine. The company combines clinical, molecular and imaging data to help physicians make more informed treatment decisions and to help researchers and biopharmaceutical companies develop therapies.

Its offerings include genomic testing and analysis, such as tissue- and blood-based tests, as well as software tools designed to assist with clinical decision-making, patient matching for clinical trials and the management of healthcare data.

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