Tempus AI (NASDAQ:TEM) Stock Jumps 4% - Time to Buy?

Key Points

• Tempus AI shares rose 4% to about $70.98, though trading volume was 79% below the average daily level.
• Analyst sentiment is mixed: 11 analysts rate the stock Buy, nine Hold and two Sell, producing a consensus Hold rating and average price target of $71.84. Canaccord raised its target to $95.
• The company beat quarterly EPS and revenue estimates, with revenue up 21.6% year over year, but remains unprofitable and analysts expect a full-year loss of $1.38 per share. Insiders have sold about $80.4 million of stock over the past 90 days, largely through pre-arranged plans to cover tax obligations.

Tempus AI, Inc. (NASDAQ:TEM - Get Free Report) shares traded up 4% during mid-day trading on Wednesday. The company traded as high as $70.15 and last traded at $70.9790. 1,277,730 shares were traded during trading, a decline of 79% from the average daily volume of 6,196,327 shares. The stock had previously closed at $68.22.

Analyst Upgrades and Downgrades

TEM has been the subject of several analyst reports. The Goldman Sachs Group started coverage on shares of Tempus AI in a research note on Monday, September 21st. They issued a "neutral" rating and a $75.00 target price for the company. Raymond James Financial set a $80.00 price target on shares of Tempus AI in a research note on Wednesday, September 2nd. Canaccord Genuity Group boosted their price objective on shares of Tempus AI from $80.00 to $95.00 and gave the stock a "buy" rating in a report on Monday. HC Wainwright upped their price objective on shares of Tempus AI from $56.00 to $66.00 and gave the company a "buy" rating in a research report on Friday, September 11th. Finally, Freedom Capital upgraded Tempus AI to a "hold" rating in a research note on Tuesday, June 30th. Eleven analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, Tempus AI presently has a consensus rating of "Hold" and an average price target of $71.84.

Tempus AI Stock Performance

The company has a debt-to-equity ratio of 3.06, a quick ratio of 3.16 and a current ratio of 3.30. The company has a market capitalization of $12.42 billion, a PE ratio of -47.78 and a beta of 3.54. The company has a 50 day moving average price of $66.88 and a 200 day moving average price of $56.07.

Tempus AI (NASDAQ:TEM - Get Free Report) last issued its quarterly 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 business had revenue of $382.49 million during the quarter, compared to analyst estimates of $379.69 million. Tempus AI had a negative net margin of 17.77% and a negative return on equity of 50.28%. The business's revenue was up 21.6% compared to the same quarter last year. During the same quarter in the previous year, the firm earned ($0.22) earnings per share. Equities analysts forecast that Tempus AI, Inc. will post -1.38 EPS for the current year.

Insider Transactions at Tempus AI

In other Tempus AI news, CFO James Rogers sold 26,313 shares of Tempus AI stock in a transaction on Wednesday, August 19th. The shares were sold at an average price of $60.00, for a total value of $1,578,780.00. Following the completion of the transaction, the chief financial officer owned 106,024 shares of the company's stock, 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 through this link. 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, EVP Andrew Polovin sold 22,148 shares of the business's stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $49.61, for a total transaction of $1,098,762.28. Following the sale, the executive vice president owned 146,067 shares of the company's stock, valued at approximately $7,246,383.87. The trade was a 13.17% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders have sold 1,280,965 shares of company stock valued at $80,397,564. Company insiders own 24.26% of the company's stock.

Institutional Investors Weigh In On Tempus AI

A number of institutional investors have recently modified their holdings of the business. Ulland Investment Advisors LLC acquired a new stake in Tempus AI during the third quarter worth about $41,000. Fagan Associates Inc. bought a new position in Tempus AI in the third quarter worth about $5,265,000. GK Wealth Management LLC acquired a new position in Tempus AI in the third quarter valued at approximately $91,000. Post Resch Tallon Group Inc. acquired a new position in Tempus AI in the third quarter valued at approximately $532,000. Finally, GAMMA Investing LLC grew its holdings in shares of Tempus AI by 54.3% during the third quarter. GAMMA Investing LLC now owns 1,239 shares of the company's stock valued at $101,000 after purchasing an additional 436 shares during the last quarter. Institutional investors own 24.22% of the company's stock.

About Tempus AI

Tempus AI, Inc is a technology company focused on applying artificial intelligence and data analytics to precision medicine. The company develops tools intended to help physicians make more informed treatment decisions by combining clinical information, molecular data and other health-related datasets.

Tempus provides genomic testing and diagnostic services, including sequencing and other molecular tests used primarily in oncology. Its platform also offers data and software solutions designed to support clinical research, pharmaceutical development, patient identification for clinical trials and the development of personalized treatment strategies.

Founded in 2015, Tempus is headquartered in Chicago and primarily serves healthcare providers, researchers and life sciences companies.

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