Tempus AI (NASDAQ:TEM) Stock Breaks Above Fifty Day Moving Average - Time to Sell?

Key Points

• Tempus AI shares rose 8% and moved above their 50-day moving average, trading at $76.05 versus the $71.32 average.
• The company beat quarterly earnings and revenue estimates, reporting EPS of $0.07 versus expectations of a $0.09 loss; revenue increased 23.1% year over year to $411.54 million.
• Analysts collectively rate the stock Hold, with a consensus price target of $79.37. Insiders sold 1.24 million shares worth about $85.4 million last quarter, including a substantial CEO sale under a pre-arranged plan.

Tempus AI, Inc. (NASDAQ:TEM - Get Free Report)'s stock price crossed above its 50 day moving average during trading on Friday. The stock has a 50 day moving average of $71.32 and traded as high as $76.85. Tempus AI shares last traded at $76.05, with a volume of 6,279,076 shares trading hands.

Wall Street Analysts Forecast Growth

Several equities research analysts recently commented on the stock. TD Cowen reiterated a "buy" rating on shares of Tempus AI in a research note on Wednesday, July 15th. UBS Group assumed coverage on shares of Tempus AI in a research note on Wednesday, September 9th. They set a "neutral" rating and a $70.00 price target for the company. HC Wainwright lifted their price objective on Tempus AI from $68.00 to $85.00 and gave the company a "buy" rating in a research report on Tuesday. Weiss Ratings upgraded shares of Tempus AI from a "sell (e+)" rating to a "sell (d-)" rating in a report on Tuesday, October 13th. Finally, Cantor Fitzgerald upped their price objective on shares of Tempus AI from $80.00 to $92.00 and gave the stock an "overweight" rating in a research report on Tuesday. Eleven equities research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, Tempus AI presently has a consensus rating of "Hold" and a consensus price target of $79.37.

Tempus AI Trading Up 8.0%

The company's fifty day moving average is $71.32 and its two-hundred day moving average is $57.25. 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 stock has a market cap of $13.72 billion, a price-to-earnings ratio of -71.75 and a beta of 3.61.

Tempus AI (NASDAQ:TEM - Get Free Report) last issued its quarterly earnings data on Monday, November 2nd. The company reported $0.07 earnings per share for the quarter, beating the consensus estimate of ($0.09) by $0.16. The firm had revenue of $411.54 million for the quarter, compared to analyst estimates of $409.39 million. Tempus AI had a negative net margin of 12.54% and a negative return on equity of 48.29%. The company's revenue for the quarter was up 23.1% on a year-over-year basis. During the same quarter last year, the firm earned ($0.46) earnings per share. On average, research analysts predict that Tempus AI, Inc. will post -1.45 EPS for the current fiscal year.

Insider Buying and Selling

In related news, CEO Eric Lefkofsky sold 250,000 shares of Tempus AI stock in a transaction that occurred on Tuesday, October 27th. The shares were sold at an average price of $70.36, for a total value of $17,590,000.00. Following the completion of the transaction, the chief executive officer owned 50,000 shares in the company, valued at $3,518,000. The trade was a 83.33% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director David Epstein sold 370 shares of the stock in a transaction on Monday, November 2nd. The shares were sold at an average price of $74.29, for a total transaction of $27,487.30. Following the transaction, the director owned 30,474 shares in the company, valued at $2,263,913.46. This trade represents a 1.20% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 1,237,227 shares of company stock worth $85,388,983 in the last quarter. 24.26% of the stock is owned by insiders.

Hedge Funds Weigh In On Tempus AI

Large investors have recently made changes to their positions in the company. Sumitomo Mitsui Trust Group Inc. grew its holdings in Tempus AI by 23.4% in the 1st quarter. Sumitomo Mitsui Trust Group Inc. now owns 4,326,313 shares of the company's stock valued at $195,636,000 after buying an additional 821,490 shares during the period. Amova Asset Management Americas Inc. lifted its holdings in shares of Tempus AI by 23.4% in the 1st quarter. Amova Asset Management Americas Inc. now owns 4,326,313 shares of the company's stock worth $195,549,000 after purchasing an additional 821,490 shares in the last quarter. Pictet Asset Management Holding SA grew its position in Tempus AI by 2,965.7% during the third quarter. Pictet Asset Management Holding SA now owns 502,897 shares of the company's stock worth $41,233,000 after buying an additional 486,493 shares in the last quarter. Eagle Health Investments LP purchased a new position in Tempus AI during the first quarter valued at $11,588,000. Finally, Aristotle Atlantic Partners LLC purchased a new position in shares of Tempus AI during the 1st quarter valued at about $6,179,000. 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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