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, though sentiment is mixed with 9 buy ratings, 4 holds and 2 sells. The average 1-year price target is about $68.54.
• The company recently reported better-than-expected quarterly results, posting EPS of -$0.13 versus estimates of -$0.21 and revenue of $348.12 million, up 36.1% year over year. Despite the revenue growth, Tempus AI remains unprofitable, with a negative net margin and negative return on equity.
• Insider selling has been notable, including CEO Eric P. Lefkofsky’s sale of 166,250 shares and CEO Ryan Fukushima’s sale of 13,550 shares. Over the last 90 days, insiders sold 572,759 shares worth about $29.2 million.

Tempus AI, Inc. (NASDAQ:TEM - Get Free Report) has been assigned an average recommendation of "Hold" from the fifteen brokerages that are currently covering the stock, Marketbeat.com reports. Two investment analysts have rated the stock with a sell recommendation, four have given a hold recommendation and nine have given a buy recommendation to the company. The average 1 year price target among analysts that have issued ratings on the stock in the last year is $68.5385.

Several equities analysts recently commented on TEM shares. BTIG Research reiterated a "buy" rating and set a $80.00 target price on shares of Tempus AI in a research note on Monday, June 1st. Needham & Company LLC restated a "buy" rating and issued a $75.00 price target on shares of Tempus AI in a research report on Monday, June 1st. Wall Street Zen downgraded shares of Tempus AI from a "hold" rating to a "sell" rating in a report on Saturday. Jefferies Financial Group assumed coverage on shares of Tempus AI in a research report on Monday, April 13th. They set an "underperform" rating and a $35.00 price objective for the company. Finally, Freedom Capital upgraded shares of Tempus AI to a "hold" rating in a research note on Tuesday.

Tempus AI Stock Performance

Shares of NASDAQ TEM opened at $60.27 on Friday. The company has a quick ratio of 3.15, a current ratio of 3.31 and a debt-to-equity ratio of 2.96. The business's 50 day moving average is $50.48 and its two-hundred day moving average is $54.57. The company has a market cap of $10.82 billion, a P/E ratio of -35.04 and a beta of 3.46. 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 issued its quarterly earnings results on Tuesday, May 5th. The company reported ($0.13) EPS for the quarter, topping analysts' consensus estimates of ($0.21) by $0.08. The company had revenue of $348.12 million during the quarter, compared to analyst estimates 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 previous year, the company earned ($0.24) earnings per share. On average, equities analysts expect that Tempus AI will post -1.35 EPS for the current year.

Insider Activity

In other Tempus AI news, CEO Eric P. Lefkofsky sold 166,250 shares of the company'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 value of $7,763,875.00. Following the completion of the transaction, the chief executive officer owned 8,808,533 shares of the company's stock, valued at $411,358,491.10. This represents a 1.85% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Ryan Fukushima sold 13,550 shares of the firm'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 sale, the chief executive officer owned 603,558 shares of the company's stock, valued at $26,598,801.06. This represents a 2.20% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders sold 572,759 shares of company stock valued at $29,238,424. Corporate insiders own 24.26% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the company. GC Wealth Management RIA LLC bought a new stake in Tempus AI in the 4th quarter valued at $399,267,000. Voloridge Investment Management LLC lifted its holdings in shares of Tempus AI by 183.0% during the 3rd quarter. Voloridge Investment Management LLC now owns 1,607,083 shares of the company's stock worth $129,708,000 after acquiring an additional 1,039,176 shares during the period. BNP Paribas Financial Markets lifted its holdings in shares of Tempus AI by 312.7% during the 3rd quarter. BNP Paribas Financial Markets now owns 1,274,549 shares of the company's stock worth $102,869,000 after acquiring an additional 965,730 shares during the period. AQR Capital Management LLC bought a new position in shares of Tempus AI during the 2nd quarter worth about $54,020,000. Finally, Sumitomo Mitsui Trust Group Inc. boosted its position in shares of Tempus AI by 23.4% during the 1st quarter. Sumitomo Mitsui Trust Group Inc. now owns 4,326,313 shares of the company's stock valued at $195,636,000 after acquiring an additional 821,490 shares in the last quarter. 24.22% of the stock is owned by institutional investors.

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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