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

Key Points

• Analysts maintain a “Hold” consensus on Tempus AI, with 9 Buy, 6 Hold and 2 Sell ratings. The average 12-month price target is $65.69, below the reported share price of $72.69.
• Tempus AI beat quarterly expectations, reporting an adjusted loss of $0.04 per share versus the $0.14 consensus loss and revenue of $382.49 million. Revenue increased 21.6% year over year, although the company remains unprofitable.
• Insiders sold shares worth $46.4 million during the last quarter, including sales by both CEOs; the transactions were conducted under pre-arranged plans or to cover tax obligations. Institutional investors own approximately 24.2% of the stock.

Tempus AI, Inc. (NASDAQ:TEM - Get Free Report) has been assigned an average recommendation of "Hold" from the seventeen analysts that are covering the firm, Marketbeat.com reports. Two analysts have rated the stock with a sell rating, six have assigned a hold rating and nine have given a buy rating to the company. The average twelve-month price objective among analysts that have issued ratings on the stock in the last year is $65.6923.

Several equities research analysts have issued reports on the company. Stifel Nicolaus dropped their target price on Tempus AI from $60.00 to $50.00 and set a "hold" rating on the stock in a research report on Monday, August 3rd. Weiss Ratings upgraded Tempus AI from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Wednesday, August 12th. Guggenheim boosted their price objective on Tempus AI from $60.00 to $65.00 and gave the company a "buy" rating in a research note on Thursday, July 16th. Needham & Company LLC reiterated a "buy" rating and set a $75.00 price objective on shares of Tempus AI in a research note on Friday, July 31st. Finally, Freedom Capital raised Tempus AI to a "hold" rating in a report on Tuesday, June 30th.

Tempus AI Price Performance

Shares of NASDAQ:TEM opened at $72.69 on Friday. The firm has a market capitalization of $13.12 billion, a PE ratio of -50.48 and a beta of 3.58. 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 $52.93 and a two-hundred day moving average price of $51.36. Tempus AI has a twelve month low of $40.77 and a twelve month high of $104.32.

Tempus AI (NASDAQ:TEM - Get Free Report) last posted its quarterly earnings results on Thursday, July 30th. The company reported ($0.04) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.14) by $0.10. The company had revenue of $382.49 million for 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 company's quarterly revenue was up 21.6% compared to the same quarter last year. During the same quarter in the previous year, the firm posted ($0.22) earnings per share. Equities analysts forecast that Tempus AI will post -1.38 EPS for the current year.

Insider Buying and Selling

In other news, CEO Ryan Fukushima sold 41,095 shares of the company's stock in a transaction dated Tuesday, August 18th. The stock was 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 this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Eric P. Lefkofsky sold 250,000 shares of the stock in a transaction dated Tuesday, July 28th. The stock was sold at an average price of $42.06, for a total transaction of $10,515,000.00. Following the completion of the sale, the chief executive officer directly owned 200,000 shares in the company, valued at approximately $8,412,000. The trade was a 55.56% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 943,202 shares of company stock worth $46,417,587 over the last quarter. 24.26% of the stock is owned by corporate insiders.

Institutional Trading of Tempus AI

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. JPL Wealth Management LLC bought a new position in Tempus AI in the 3rd quarter valued at $26,000. Los Angeles Capital Management LLC purchased a new position in shares of Tempus AI during the 4th quarter valued at $27,000. EMC Capital Management purchased a new position in shares of Tempus AI during the 2nd quarter valued at $29,000. Harvest Fund Management Co. Ltd bought a new position in shares of Tempus AI in the third quarter worth $38,000. Finally, Whittier Trust Co. increased its holdings in shares of Tempus AI by 190.0% in the first quarter. Whittier Trust Co. now owns 870 shares of the company's stock worth $41,000 after purchasing an additional 570 shares during the period. Institutional investors own 24.22% of the company's stock.

Key Stories Impacting Tempus AI

Here are the key news stories impacting Tempus AI this week:

• Positive Sentiment: BTIG raised its price target for Tempus AI to $80 from $70 and maintained a “Buy” rating. The higher target strengthens the bullish case and provides a near-term catalyst for the stock. BTIG raises Tempus AI price target
• Positive Sentiment: Investor attention is building around Tempus AI’s planned approximately $1.5 billion all-stock acquisition of Personalis. The deal could expand Tempus’ genomic-data, cancer-testing and drug-development capabilities, potentially increasing its strategic value in precision medicine. Tempus AI biotech deal attracts investor attention
• Positive Sentiment: Merck and Moderna’s cancer-vaccine trial developments have heightened interest in oncology data and genomic testing. The connection to Tempus is indirect, but the news reinforces the company’s cancer-data and personalized-treatment growth narrative. Tempus AI stock move and Merck-Moderna trial news
• Positive Sentiment: Trading activity in TEM call options was unusually high, with reported volume roughly 57% above normal. This indicates bullish speculation and may be amplifying the stock’s momentum, though options activity can also increase volatility.
• Neutral Sentiment: The stock has moved above its 50-day and 200-day moving averages, raising the possibility of momentum buying or a short squeeze. That technical strength could support further gains, but it also increases the risk of a sharp reversal.
• Negative Sentiment: Tempus AI’s CEO, CFO, EVP and chief accounting officer sold shares, with the largest reported transaction involving CEO Eric Lefkofsky. The sales reduced executives’ holdings and may concern investors, but they were conducted under pre-arranged Rule 10b5-1 plans to cover tax withholding on vested equity awards, making them a weaker bearish signal than discretionary selling.

Tempus AI Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source