Tempus AI (NASDAQ:TEM) Shares Gap Up - Should You Buy?

Key Points

• Tempus AI shares opened higher, rising from a prior close of $63.05 to $65.64 before trading around $64.69. Piper Sandler upgraded the stock to “overweight” with a $76 price target, while the broader analyst consensus remains “Hold” with a $67.23 target.
• The company’s latest quarterly results beat expectations: adjusted loss was $0.04 per share versus an expected $0.14 loss, while revenue reached $382.49 million, up 21.6% year over year. Tempus remains unprofitable, with a negative net margin and analysts forecasting a full-year loss.
• Insiders have been net sellers, with executives selling more than 1 million shares worth approximately $56.8 million over the past 90 days, though the reported transactions were made under pre-arranged plans. Institutional investors and hedge funds own about 24.2% of the stock.

Tempus AI, Inc. (NASDAQ:TEM - Get Free Report)'s stock price gapped up prior to trading on Tuesday . The stock had previously closed at $63.05, but opened at $65.64. Tempus AI shares last traded at $64.6920, with a volume of 1,265,656 shares trading hands.

Analyst Upgrades and Downgrades

Several equities analysts have weighed in on TEM shares. Piper Sandler upgraded shares of Tempus AI from a "neutral" rating to an "overweight" rating and set a $76.00 price objective on the stock in a research report on Tuesday. Wall Street Zen raised Tempus AI from a "sell" rating to a "hold" rating in a research report on Saturday, July 25th. TD Cowen reissued a "buy" rating on shares of Tempus AI in a research report on Wednesday, July 15th. Needham & Company LLC reissued a "buy" rating and issued a $75.00 price objective on shares of Tempus AI in a research note on Friday, July 31st. Finally, Guggenheim lifted their target price on Tempus AI from $60.00 to $65.00 and gave the company a "buy" rating in a research note on Thursday, July 16th. Ten investment analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $67.23.

Tempus AI Stock Down 1.3%

The company has a quick ratio of 3.16, a current ratio of 3.30 and a debt-to-equity ratio of 3.06. The company has a market cap of $11.23 billion, a price-to-earnings ratio of -43.14 and a beta of 3.58. The business has a 50-day simple moving average of $54.93 and a two-hundred day simple moving average of $51.81.

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. The firm had revenue of $382.49 million during the quarter, compared to analysts' expectations of $379.69 million. Tempus AI had a negative return on equity of 50.28% and a negative net margin of 17.77%.The company's revenue was up 21.6% on a year-over-year basis. During the same quarter in the prior year, the business earned ($0.22) earnings per share. As a group, equities analysts forecast that Tempus AI, Inc. will post -1.38 earnings per share for the current fiscal year.

Insider Activity

In other Tempus AI news, CFO James William Rogers sold 26,313 shares of Tempus AI stock in a transaction that occurred on Wednesday, August 19th. The stock was sold at an average price of $60.00, for a total value of $1,578,780.00. Following the transaction, the chief financial officer directly owned 106,024 shares of the company's stock, valued at $6,361,440. The trade was a 19.88% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. 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 Eric P. Lefkofsky sold 11,848 shares of the company's stock in a transaction that occurred on Tuesday, August 25th. The stock was sold at an average price of $69.87, for a total value of $827,819.76. Following the transaction, the chief executive officer owned 150,000 shares of the company's stock, valued at approximately $10,480,500. This trade represents a 7.32% 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 have sold 1,040,988 shares of company stock worth $56,756,417 over the last 90 days. Company insiders own 24.26% of the company's stock.

Institutional Trading of Tempus AI

Several hedge funds and other institutional investors have recently bought and sold shares of TEM. JPL Wealth Management LLC bought a new stake in shares of Tempus AI in the third quarter valued at about $26,000. Los Angeles Capital Management LLC acquired a new position in shares of Tempus AI in the fourth quarter valued at $27,000. Harvest Fund Management Co. Ltd bought a new position in Tempus AI in the third quarter worth $38,000. EMC Capital Management acquired a new stake in Tempus AI during the second quarter worth $29,000. Finally, Danske Bank A S bought a new stake in Tempus AI in the 3rd quarter valued at $48,000. 24.22% of the stock is currently owned by institutional investors and hedge funds.

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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