Tempus AI, Inc. (NASDAQ:TEM) Receives Consensus Recommendation of "Moderate Buy" from Analysts

Key Points

• Tempus AI has a consensus analyst rating of “Moderate Buy”, based on coverage from 14 research firms. The average 12-month price target is about $68.64, above the stock’s recent trading level.
• The company’s latest quarterly results beat earnings and revenue estimates, with EPS of -$0.13 versus expectations of -$0.21 and revenue of $348.12 million, up 36.1% year over year.
• Despite the positive analyst view and growth, the stock has faced pressure from insider selling and mixed price-target cuts from some firms, while shares trade well below their 52-week high of $104.32.

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

Several analysts recently issued reports on the company. BTIG Research lowered their price target on Tempus AI from $90.00 to $80.00 and set a "buy" rating for the company in a report on Friday, May 8th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Tempus AI in a report on Thursday, January 22nd. JPMorgan Chase & Co. lowered their price target on Tempus AI from $80.00 to $60.00 and set a "neutral" rating for the company in a report on Wednesday, February 25th. HC Wainwright lowered their price target on Tempus AI from $95.00 to $64.00 and set a "buy" rating for the company in a report on Monday. Finally, Jefferies Financial Group assumed coverage on Tempus AI in a report on Monday, April 13th. They issued an "underperform" rating and a $35.00 price target for the company.

Tempus AI Trading Down 0.9%

TEM stock opened at $45.48 on Friday. The company has a market cap of $8.17 billion, a price-to-earnings ratio of -26.44 and a beta of 3.99. 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 has a fifty day simple moving average of $49.71 and a 200-day simple moving average of $60.92. 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 announced its quarterly earnings results 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. Tempus AI had a negative return on equity of 53.83% and a negative net margin of 22.20%.The firm had revenue of $348.12 million during the quarter, compared to the consensus estimate of $345.44 million. During the same period in the prior year, the firm earned ($0.24) EPS. The firm's quarterly revenue was up 36.1% compared to the same quarter last year. On average, equities research analysts expect that Tempus AI will post -1.35 EPS for the current year.

Insider Transactions at Tempus AI

In related news, EVP Andrew Polovin sold 10,949 shares of the stock in a transaction on Friday, February 20th. The stock was sold at an average price of $60.31, for a total value of $660,334.19. Following the completion of the sale, the executive vice president directly owned 126,918 shares in the company, valued at approximately $7,654,424.58. This represents a 7.94% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Eric P. Lefkofsky sold 166,250 shares of the stock in a transaction on Tuesday, April 28th. The shares were sold at an average price of $51.13, for a total value of $8,500,362.50. Following the completion of the sale, the chief executive officer owned 8,841,783 shares of the company's stock, valued at approximately $452,080,364.79. This represents a 1.85% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 563,471 shares of company stock worth $29,837,342 in the last quarter. 24.26% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Tempus AI

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. JPL Wealth Management LLC purchased a new position in Tempus AI in the 3rd quarter valued at about $26,000. Los Angeles Capital Management LLC purchased a new position in Tempus AI in the 4th quarter valued at about $27,000. Harvest Fund Management Co. Ltd purchased a new position in Tempus AI in the 3rd quarter valued at about $38,000. Whittier Trust Co. boosted its position in Tempus AI by 190.0% in the 1st quarter. Whittier Trust Co. now owns 870 shares of the company's stock valued at $41,000 after buying an additional 570 shares during the last quarter. Finally, Lodestone Wealth Management LLC purchased a new position in Tempus AI in the 4th quarter valued at about $42,000. 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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