Tempus AI (NASDAQ:TEM) Stock Price Down 5.7% - Here's What Happened

Key Points

• Tempus AI shares fell 5.7% to about $67.07 in low-volume trading, with volume down 79% from the daily average.
• Analyst views remain mixed: the consensus rating is “Hold” with a $72.37 target, although Guggenheim and Canaccord raised their targets to $92 and $95, respectively.
• The company reported better-than-expected quarterly results, including a loss of $0.04 per share versus the $0.14 expected and 21.6% year-over-year revenue growth; however, it remains unprofitable and insiders sold significant shares, largely to cover tax obligations.

Shares of Tempus AI, Inc. (NASDAQ:TEM - Get Free Report) fell 5.7% on Friday. The company traded as low as $67.13 and last traded at $67.0680. 1,330,559 shares were traded during trading, a decline of 79% from the average daily volume of 6,199,571 shares. The stock had previously closed at $71.13.

Analysts Set New Price Targets

Several equities analysts recently weighed in on TEM shares. Guggenheim lifted their target price on shares of Tempus AI from $65.00 to $92.00 and gave the company a "buy" rating in a report on Thursday, October 1st. JPMorgan Chase & Co. raised their target price on Tempus AI from $45.00 to $70.00 and gave the company a "neutral" rating in a research note on Wednesday. Lake Street Capital downgraded Tempus AI to a "hold" rating in a report on Monday, July 20th. Rothschild & Co Redburn started coverage on shares of Tempus AI in a research report on Tuesday, September 8th. They set a "neutral" rating and a $67.00 price target for the company. Finally, Canaccord Genuity Group increased their price target on shares of Tempus AI from $80.00 to $95.00 and gave the stock a "buy" rating in a research report on Monday. Eleven research analysts have rated the stock with a Buy rating, nine have given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $72.37.

Tempus AI Stock Performance

The company has a market cap of $11.99 billion, a P/E ratio of -46.19 and a beta of 3.54. 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 50 day moving average price of $67.81 and a 200-day moving average price of $56.43.

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 for the quarter, topping analysts' consensus estimates of ($0.14) by $0.10. Tempus AI had a negative net margin of 17.77% and a negative return on equity of 50.28%. 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 prior year, the business posted ($0.22) EPS. The business's revenue for the quarter was up 21.6% compared to the same quarter last year. Equities analysts expect that Tempus AI, Inc. will post -1.38 EPS for the current fiscal year.

Insider Buying and Selling

In related news, CEO Ryan Fukushima sold 41,095 shares of Tempus AI stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $49.61, for a total value of $2,038,722.95. Following the completion of the sale, the chief executive officer owned 562,463 shares of the company's stock, valued at approximately $27,903,789.43. The trade was a 6.81% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 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 company's stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $49.61, for a total value of $1,098,762.28. Following the sale, the executive vice president directly owned 146,067 shares of the company's stock, valued at $7,246,383.87. The trade was a 13.17% decrease in their position. The SEC filing for this sale provides additional information. 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 quarter, insiders have sold 1,280,965 shares of company stock worth $80,397,564. Company insiders own 24.26% of the company's stock.

Hedge Funds Weigh In On Tempus AI

Institutional investors and hedge funds have recently bought and sold shares of the stock. V Square Quantitative Management LLC acquired a new position in shares of Tempus AI during the third quarter valued at about $27,000. Mather Group LLC. bought a new stake in shares of Tempus AI during the third quarter valued at approximately $79,000. Essex LLC bought a new stake in Tempus AI in the 3rd quarter valued at $209,000. Ulland Investment Advisors LLC acquired a new stake in shares of Tempus AI during the 3rd quarter valued at about $41,000. Finally, Fagan Associates Inc. acquired a new position in Tempus AI in the third quarter worth about $5,265,000. 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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