Tempus AI, Inc. (NASDAQ:TEM) Given Average Recommendation of "Hold" by Brokerages

Key Points

• Tempus AI has an average analyst recommendation of "Hold" from 15 brokerages, with 9 buy ratings, 4 hold ratings, and 2 sell ratings. The average 12-month price target is about $68.64.
• Recent insider activity showed CEO Ryan Fukushima and CFO James William Rogers both sold shares on May 19, mainly to cover tax withholding tied to equity awards. Insiders sold a total of 558,557 shares over the last quarter.
• The company reported its latest quarter with revenue of $348.12 million, topping estimates and rising 36.1% year over year, while EPS of -$0.13 beat expectations. Despite the beat, Tempus AI remains unprofitable and analysts expect full-year EPS of -1.35.

Shares of Tempus AI, Inc. (NASDAQ:TEM - Get Free Report) have received an average rating of "Hold" from the fifteen research firms that are currently covering the company, Marketbeat Ratings reports. Two equities research analysts have rated the stock with a sell rating, four have assigned a hold rating and nine have issued a buy rating on the company. The average 12-month price objective among brokerages that have covered the stock in the last year is $68.6429.

Several analysts have recently commented on TEM shares. Needham & Company LLC reissued a "buy" rating and issued a $75.00 price objective on shares of Tempus AI in a research note on Monday, June 1st. TD Cowen increased their price objective on Tempus AI from $65.00 to $68.00 and gave the stock a "buy" rating in a research note on Wednesday, May 6th. Stifel Nicolaus set a $60.00 price objective on Tempus AI in a research note on Wednesday, February 25th. Wolfe Research initiated coverage on Tempus AI in a research note on Tuesday, June 2nd. They issued a "peer perform" rating for the company. Finally, Jefferies Financial Group initiated coverage on Tempus AI in a report on Monday, April 13th. They issued an "underperform" rating and a $35.00 target price for the company.

Insider Buying and Selling

In other news, CEO Ryan Fukushima sold 13,550 shares of the company's stock in a transaction that occurred on Tuesday, May 19th. The stock was sold at an average price of $44.07, for a total value of $597,148.50. Following the completion of the transaction, the chief executive officer directly owned 603,558 shares of the company's stock, valued at $26,598,801.06. This represents a 2.20% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO James William Rogers sold 10,853 shares of the company's stock in a transaction that occurred on Tuesday, May 19th. The shares were sold at an average price of $44.07, for a total value of $478,291.71. Following the completion of the transaction, the chief financial officer directly owned 126,395 shares of the company's stock, valued at approximately $5,570,227.65. This represents a 7.91% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 558,557 shares of company stock valued at $26,611,939 over the last quarter. Corporate insiders own 24.26% of the company's stock.

Hedge Funds Weigh In On Tempus AI

Several institutional investors have recently bought and sold shares of TEM. JPL Wealth Management LLC purchased a new position in Tempus AI in the third quarter valued at approximately $26,000. Los Angeles Capital Management LLC purchased a new position in Tempus AI in the fourth quarter valued at approximately $27,000. Harvest Fund Management Co. Ltd purchased a new position in Tempus AI in the third quarter valued at approximately $38,000. Whittier Trust Co. lifted its stake in Tempus AI by 190.0% in the first quarter. Whittier Trust Co. now owns 870 shares of the company's stock valued at $41,000 after purchasing an additional 570 shares during the last quarter. Finally, Lodestone Wealth Management LLC purchased a new position in Tempus AI in the fourth quarter valued at approximately $42,000. Hedge funds and other institutional investors own 24.22% of the company's stock.

Tempus AI Price Performance

TEM stock opened at $48.59 on Tuesday. The company has a debt-to-equity ratio of 2.96, a quick ratio of 3.15 and a current ratio of 3.31. The business has a 50-day simple moving average of $48.95 and a two-hundred day simple moving average of $57.29. The company has a market capitalization of $8.73 billion, a P/E ratio of -28.25 and a beta of 3.64. Tempus AI has a 52-week low of $41.73 and a 52-week high of $104.32.

Tempus AI (NASDAQ:TEM - Get Free Report) last issued its quarterly earnings data on Tuesday, May 5th. The company reported ($0.13) EPS for the quarter, topping the consensus estimate of ($0.21) by $0.08. The firm had revenue of $348.12 million during the quarter, compared to the consensus estimate of $345.44 million. Tempus AI had a negative return on equity of 53.83% and a negative net margin of 22.20%.The company's quarterly revenue was up 36.1% compared to the same quarter last year. During the same period in the prior year, the business posted ($0.24) earnings per share. Research analysts expect that Tempus AI will post -1.35 EPS for the current fiscal year.

About Tempus AI

Tempus is a technology-driven healthcare company that applies artificial intelligence and machine learning to clinical and molecular data in order to advance precision medicine. Its primary focus lies in oncology, where the company offers comprehensive genomic profiling, digital pathology services and data-driven insights to inform personalized cancer care. By integrating DNA and RNA sequencing with structured clinical information, Tempus enables clinicians and researchers to identify targeted treatment options for patients based on the genetic characteristics of their tumors.

The company's core offering centers on a scalable, cloud-based analytics platform that aggregates vast amounts of molecular and clinical data.

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