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

Key Points

• Tempus AI has a consensus analyst rating of "Hold" from 15 brokerages, with nine buy ratings, four hold ratings, and two sell ratings. The average 12-month price target is about $68.64.
• Recent analyst updates were mixed, with several firms lowering price targets while keeping bullish or neutral views. Notably, HC Wainwright cut its target to $64, JPMorgan to $60, and Guggenheim to $60, while BTIG reiterated a $80 buy target.
• The company reported better-than-expected Q1 results, posting a smaller-than-expected loss and revenue of $348.12 million, up 36.1% year over year. However, insiders have been selling shares, including the CEO and CFO, and the stock remains highly volatile with a beta of 3.64.

Shares of Tempus AI, Inc. (NASDAQ:TEM - Get Free Report) have been given a consensus recommendation of "Hold" by the fifteen ratings firms that are currently covering the stock, Marketbeat reports. Two research analysts have rated the stock with a sell rating, four have issued a hold rating and nine have given a buy rating to the company. The average 12 month price objective among brokerages that have issued a report on the stock in the last year is $68.6429.

A number of analysts recently weighed in on TEM shares. HC Wainwright reduced their target price on shares of Tempus AI from $95.00 to $64.00 and set a "buy" rating for the company in a report on Monday, May 11th. JPMorgan Chase & Co. reduced their target price on shares of Tempus AI from $80.00 to $60.00 and set a "neutral" rating for the company in a report on Wednesday, February 25th. BTIG Research restated a "buy" rating and set a $80.00 target price on shares of Tempus AI in a report on Monday, June 1st. TD Cowen raised their target price on shares of Tempus AI from $65.00 to $68.00 and gave the stock a "buy" rating in a report on Wednesday, May 6th. Finally, Guggenheim reduced their target price on shares of Tempus AI from $95.00 to $60.00 and set a "buy" rating for the company in a report on Monday, March 30th.

Insider Activity

In related news, CFO James William Rogers sold 10,853 shares of the firm'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 transaction of $478,291.71. Following the completion of the sale, the chief financial officer directly owned 126,395 shares in the company, valued at approximately $5,570,227.65. This trade represents a 7.91% 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, CEO Eric P. Lefkofsky sold 166,250 shares of the firm's stock in a transaction that occurred on Wednesday, May 27th. The stock was sold at an average price of $46.70, for a total transaction of $7,763,875.00. Following the sale, the chief executive officer owned 8,808,533 shares of the company's stock, valued at $411,358,491.10. The trade was a 1.85% 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 a total of 558,557 shares of company stock valued at $26,611,939 in the last ninety days. 24.26% of the stock is owned by company insiders.

Hedge Funds Weigh In On Tempus AI

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in TEM. JPL Wealth Management LLC acquired a new position in Tempus AI in the 3rd quarter worth approximately $26,000. Los Angeles Capital Management LLC acquired a new position in Tempus AI in the 4th quarter worth approximately $27,000. Harvest Fund Management Co. Ltd acquired a new position in Tempus AI in the 3rd quarter worth approximately $38,000. Whittier Trust Co. boosted its stake in Tempus AI by 190.0% in the 1st 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. Finally, Lodestone Wealth Management LLC acquired a new position in Tempus AI in the 4th quarter worth approximately $42,000. Institutional investors and hedge funds own 24.22% of the company's stock.

Tempus AI Trading Up 4.7%

Tempus AI stock opened at $48.59 on Tuesday. The firm has a 50 day simple moving average of $48.95 and a 200-day simple moving average of $57.29. The company has a debt-to-equity ratio of 2.96, a current ratio of 3.31 and a quick ratio of 3.15. The stock has a market capitalization of $8.73 billion, a PE ratio of -28.25 and a beta of 3.64. Tempus AI has a 12-month low of $41.73 and a 12-month high of $104.32.

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

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.

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