Tempus AI, Inc. (NASDAQ:TEM) Receives Consensus Rating of "Hold" from Brokerages

Key Points

• Tempus AI has a consensus “Hold” rating from 16 analysts: nine recommend buying, five recommend holding, and two recommend selling. The average 12-month price target is $68.92, compared with the stock’s reported opening price of $42.90.
• The company’s latest quarterly results exceeded expectations, with adjusted EPS of negative $0.13 versus the estimated negative $0.21 and revenue of $348.12 million. Revenue increased 36.1% year over year, though Tempus remains unprofitable and analysts expect a full-year loss of $1.35 per share.
• Insiders sold 449,793 shares worth approximately $23.25 million over the past three months, including sales by the CFO and a director under pre-arranged trading plans. Corporate insiders own 24.26% of the company, while institutional investors own 24.22%.

Tempus AI, Inc. (NASDAQ:TEM - Get Free Report) has earned a consensus recommendation of "Hold" from the sixteen ratings firms that are presently covering the firm, MarketBeat.com reports. Two investment analysts have rated the stock with a sell recommendation, five have issued a hold recommendation and nine have issued a buy recommendation on the company. The average 12 month price target among brokerages that have covered the stock in the last year is $68.9231.

A number of equities research analysts have recently commented on TEM shares. BTIG Research reaffirmed a "buy" rating and issued a $80.00 price objective on shares of Tempus AI in a research report on Monday, June 1st. HC Wainwright reiterated a "buy" rating on shares of Tempus AI in a research report on Friday. Wall Street Zen raised Tempus AI from a "sell" rating to a "hold" rating in a research note on Saturday. TD Cowen restated a "buy" rating on shares of Tempus AI in a report on Wednesday, July 15th. Finally, Jefferies Financial Group started coverage on shares of Tempus AI in a research note on Monday, April 13th. They set an "underperform" rating and a $35.00 price objective for the company.

Tempus AI Stock Down 0.0%

Shares of NASDAQ TEM opened at $42.90 on Wednesday. The firm has a market cap of $7.70 billion, a P/E ratio of -24.94 and a beta of 3.46. The company has a debt-to-equity ratio of 2.96, a quick ratio of 3.15 and a current ratio of 3.31. Tempus AI has a 1 year low of $40.77 and a 1 year high of $104.32. The firm's 50 day moving average price is $51.58 and its 200 day moving average price is $53.11.

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

Insiders Place Their Bets

In other Tempus AI news, CFO James William Rogers sold 11,529 shares of the stock in a transaction that occurred on Thursday, June 25th. The shares were sold at an average price of $55.00, for a total transaction of $634,095.00. Following the transaction, the chief financial officer owned 114,866 shares of the company's stock, valued at $6,317,630. This trade represents a 9.12% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Jennifer A. Doudna sold 2,673 shares of the stock in a transaction that occurred on Thursday, June 25th. The stock was sold at an average price of $55.00, for a total transaction of $147,015.00. Following the transaction, the director directly owned 25,942 shares in the company, valued at approximately $1,426,810. This represents a 9.34% 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. In the last three months, insiders sold 449,793 shares of company stock valued at $23,248,231. 24.26% of the stock is currently owned by corporate insiders.

Institutional Trading of Tempus AI

Several institutional investors have recently made changes to their positions in the stock. Victory Capital Management Inc. grew its stake in shares of Tempus AI by 1.5% in the third quarter. Victory Capital Management Inc. now owns 11,078 shares of the company's stock valued at $894,000 after buying an additional 162 shares in the last quarter. Legacy Bridge LLC lifted its position in Tempus AI by 1.6% during the 4th quarter. Legacy Bridge LLC now owns 12,418 shares of the company's stock worth $733,000 after acquiring an additional 193 shares in the last quarter. Truist Financial Corp boosted its holdings in Tempus AI by 5.8% in the 4th quarter. Truist Financial Corp now owns 3,532 shares of the company's stock worth $209,000 after acquiring an additional 194 shares during the period. Farther Finance Advisors LLC boosted its holdings in Tempus AI by 3.5% in the 4th quarter. Farther Finance Advisors LLC now owns 6,390 shares of the company's stock worth $377,000 after acquiring an additional 219 shares during the period. Finally, SeaCrest Wealth Management LLC grew its position in Tempus AI by 3.7% in the third quarter. SeaCrest Wealth Management LLC now owns 6,488 shares of the company's stock valued at $524,000 after acquiring an additional 229 shares in the last quarter. 24.22% of the stock is owned by hedge funds and other institutional investors.

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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