Tempus AI (NASDAQ:TEM) Stock Price Down 7.8% - Here's What Happened

Key Points

• Tempus AI shares fell 7.8% on Friday, closing around $69.99 after trading as low as $70.55; trading volume was 87% below its average.
• The company beat quarterly expectations, reporting EPS of $0.07 versus analysts’ forecast of a $0.09 loss, while revenue rose 23.1% year over year to $411.54 million.
• Analyst sentiment is mixed: MarketBeat reports an average Hold rating and a consensus price target of $79.37.

Tempus AI, Inc. (NASDAQ:TEM - Get Free Report)'s share price was down 7.8% on Friday. The stock traded as low as $70.55 and last traded at $69.9910. 808,135 shares traded hands during mid-day trading, a decline of 87% from the average session volume of 6,219,010 shares. The stock had previously closed at $75.89.

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on the stock. JPMorgan Chase & Co. raised their price objective on shares of Tempus AI from $45.00 to $70.00 and gave the stock a "neutral" rating in a research report on Wednesday, October 14th. Robert W. Baird upped their target price on Tempus AI from $85.00 to $92.00 and gave the company an "outperform" rating in a research report on Tuesday, November 3rd. The Goldman Sachs Group assumed coverage on Tempus AI in a research note on Monday, September 21st. They set a "neutral" rating and a $75.00 target price on the stock. Raymond James Financial set a $80.00 price target on Tempus AI in a report on Wednesday, September 2nd. Finally, Needham & Company LLC boosted their price target on Tempus AI from $75.00 to $89.00 and gave the company a "buy" rating in a research note on Monday, November 2nd. Eleven 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.com, Tempus AI currently has an average rating of "Hold" and a consensus target price of $79.37.

Tempus AI Trading Down 8.0%

The company has a debt-to-equity ratio of 2.70, a current ratio of 2.61 and a quick ratio of 2.48. The business's 50-day moving average is $72.70 and its 200 day moving average is $57.51. The firm has a market capitalization of $12.74 billion, a P/E ratio of -65.86 and a beta of 3.61.

Tempus AI (NASDAQ:TEM - Get Free Report) last posted its quarterly earnings data on Monday, November 2nd. The company reported $0.07 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.09) by $0.16. The firm had revenue of $411.54 million during the quarter, compared to the consensus estimate of $409.39 million. Tempus AI had a negative net margin of 12.54% and a negative return on equity of 47.00%. The business's revenue for the quarter was up 23.1% compared to the same quarter last year. During the same quarter in the previous year, the firm posted ($0.46) EPS. As a group, analysts anticipate that Tempus AI, Inc. will post -1.20 EPS for the current fiscal year.

Insider Buying and Selling

In other Tempus AI news, CEO Ryan Fukushima sold 41,095 shares of the stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $49.61, for a total transaction of $2,038,722.95. Following the sale, the chief executive officer directly owned 562,463 shares in the company, valued at $27,903,789.43. This represents a 6.81% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. 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 firm's stock in a transaction dated 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 completion of the transaction, the executive vice president directly owned 146,067 shares in the company, valued at approximately $7,246,383.87. This represents a 13.17% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 1,237,227 shares of company stock worth $85,388,983 over the last three months. Company insiders own 24.26% of the company's stock.

Institutional Trading of Tempus AI

Large investors have recently made changes to their positions in the company. Amova Asset Management Americas Inc. increased its stake in Tempus AI by 23.4% in the first quarter. Amova Asset Management Americas Inc. now owns 4,326,313 shares of the company's stock valued at $195,549,000 after acquiring an additional 821,490 shares during the last quarter. Pictet Asset Management Holding SA lifted its stake 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 purchasing an additional 486,493 shares during the last quarter. Eagle Health Investments LP bought a new stake in Tempus AI during the first quarter worth $11,588,000. First Trust Advisors LP boosted its holdings in shares of Tempus AI by 90.3% in the 3rd quarter. First Trust Advisors LP now owns 456,624 shares of the company's stock valued at $37,397,000 after purchasing an additional 216,692 shares in the last quarter. Finally, Aristotle Atlantic Partners LLC acquired a new stake in shares of Tempus AI in the 1st quarter valued at $6,179,000. Institutional investors and hedge funds own 24.22% of the company's stock.

About Tempus AI

Tempus AI is a technology company focused on applying data and artificial intelligence to healthcare, with an emphasis on precision medicine. Its platform combines clinical and molecular data to help physicians make more informed treatment decisions and support life-sciences research. The company provides genomic sequencing and other diagnostic testing, software tools for analyzing patient data, and services that help identify clinical trial opportunities. Its work spans oncology and other areas of medicine, and it collaborates with healthcare providers and pharmaceutical and biotechnology companies.

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