Tempus AI (NASDAQ:TEM) Shares Up 3.9% - Here's Why

Key Points

• Tempus AI shares rose 3.9% to $64.63 in mid-day trading, despite trading volume falling 84% below its average.
• Analyst views remain mixed: the consensus rating is Hold with an average price target of $69.33, though several firms raised targets, including Needham’s $75 target.
• The company beat quarterly earnings and revenue expectations, reporting a $0.04 adjusted loss per share versus the projected $0.14 loss and 21.6% year-over-year revenue growth, but it remains unprofitable with a negative net margin.

Tempus AI, Inc. (NASDAQ:TEM - Get Free Report) shares rose 3.9% during mid-day trading on Tuesday . The company traded as high as $65.50 and last traded at $64.6250. Approximately 966,759 shares traded hands during trading, a decline of 84% from the average daily volume of 6,009,018 shares. The stock had previously closed at $62.21.

Analysts Set New Price Targets

Several research analysts have weighed in on the company. Guggenheim upped their target price on Tempus AI from $60.00 to $65.00 and gave the stock a "buy" rating in a research report on Thursday, July 16th. HC Wainwright increased their price target on shares of Tempus AI from $56.00 to $66.00 and gave the stock a "buy" rating in a research note on Friday. Freedom Capital raised shares of Tempus AI to a "hold" rating in a research note on Tuesday, June 30th. Needham & Company LLC reissued a "buy" rating and set a $75.00 target price on shares of Tempus AI in a research report on Friday, July 31st. Finally, Wolfe Research assumed coverage on Tempus AI in a report on Tuesday, June 2nd. They set a "peer perform" rating on the stock. Eleven 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. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $69.33.

Tempus AI Price Performance

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 firm has a market capitalization of $11.99 billion, a P/E ratio of -46.51 and a beta of 3.72. The company's 50 day moving average price is $55.99 and its 200 day moving average price is $52.33.

Tempus AI (NASDAQ:TEM - Get Free Report) last posted its quarterly earnings data on Thursday, July 30th. The company reported ($0.04) earnings per share for the quarter, topping the consensus estimate 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 net margin of 17.77% and a negative return on equity of 50.28%. Tempus AI's revenue was up 21.6% on a year-over-year basis. During the same quarter in the previous year, the company posted ($0.22) EPS. As a group, sell-side analysts anticipate that Tempus AI, Inc. will post -1.38 EPS for the current fiscal year.

Insider Transactions at Tempus AI

In other Tempus AI news, EVP Andrew Polovin sold 7,927 shares of the business's stock in a transaction dated Wednesday, August 19th. The stock was sold at an average price of $56.00, for a total transaction of $443,912.00. Following the completion of the sale, the executive vice president directly owned 138,140 shares of the company's stock, valued at approximately $7,735,840. The trade was a 5.43% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through 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 Ryan Fukushima sold 14,286 shares of the firm's stock in a transaction dated 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 transaction, the chief executive officer directly owned 47,420 shares in the company, valued at $3,319,400. This trade represents a 23.15% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 1,043,988 shares of company stock valued at $56,963,417. 24.26% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Tempus AI

Hedge funds and other institutional investors have recently bought and sold shares of the business. Amova Asset Management Americas Inc. grew its position in shares of Tempus AI by 1.2% in the 4th quarter. Amova Asset Management Americas Inc. now owns 3,504,823 shares of the company's stock valued at $206,960,000 after purchasing an additional 41,728 shares during the period. Sumitomo Mitsui Trust Group Inc. raised its holdings in Tempus AI by 23.4% during the 1st 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 period. Geode Capital Management LLC raised its holdings in Tempus AI by 8.2% during the 4th quarter. Geode Capital Management LLC now owns 1,870,510 shares of the company's stock worth $110,478,000 after buying an additional 141,680 shares during the period. Franklin Resources Inc. lifted its stake in Tempus AI by 27.9% in the fourth quarter. Franklin Resources Inc. now owns 1,861,782 shares of the company's stock valued at $109,938,000 after buying an additional 405,662 shares in the last quarter. Finally, Lingotto Investment Management LLP lifted its stake in Tempus AI by 45.9% in the fourth quarter. Lingotto Investment Management LLP now owns 1,143,526 shares of the company's stock valued at $67,525,000 after buying an additional 359,667 shares in the last quarter. 24.22% of the stock is owned by institutional investors.

About Tempus AI

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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