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

Key Points

• Tempus AI, Inc. (NASDAQ:TEM) has received a consensus rating of “Moderate Buy” from twelve analysts, with an average 12-month price target of $65.36.
• The company reported a quarterly revenue of $314.64 million, exceeding analyst expectations and marking an increase of 89.5% from the same quarter last year.
• Institutional investors such as Vanguard Group and ARK Investment Management have significantly increased their stakes in Tempus AI, reflecting strong institutional interest.

Shares of Tempus AI, Inc. (NASDAQ:TEM - Get Free Report) have been assigned an average rating of "Moderate Buy" from the twelve analysts that are currently covering the company, Marketbeat.com reports. Six investment analysts have rated the stock with a hold recommendation and six have given a buy recommendation to the company. The average 12 month price target among brokers that have issued ratings on the stock in the last year is $65.3636.

A number of research firms have weighed in on TEM. Morgan Stanley upped their target price on Tempus AI from $65.00 to $68.00 and gave the stock an "overweight" rating in a report on Tuesday. Bank of America upped their target price on Tempus AI from $68.00 to $70.00 and gave the stock a "neutral" rating in a report on Wednesday, June 25th. BTIG Research began coverage on Tempus AI in a report on Friday. They set a "buy" rating and a $60.00 target price on the stock. Needham & Company LLC reiterated a "buy" rating and set a $70.00 target price on shares of Tempus AI in a report on Friday. Finally, Guggenheim upped their price target on Tempus AI from $65.00 to $75.00 and gave the stock a "buy" rating in a research note on Monday, June 30th.

Tempus AI Trading Up 9.1%

NASDAQ TEM opened at $66.34 on Wednesday. The stock has a 50-day moving average of $62.50 and a 200-day moving average of $58.20. The firm has a market cap of $11.48 billion, a PE ratio of -55.75 and a beta of 4.98. The company has a current ratio of 1.54, a quick ratio of 1.56 and a debt-to-equity ratio of 2.58. Tempus AI has a 1-year low of $31.36 and a 1-year high of $91.45.

Tempus AI (NASDAQ:TEM - Get Free Report) last released its quarterly earnings results on Friday, August 8th. The company reported ($0.22) EPS for the quarter, beating analysts' consensus estimates of ($0.23) by $0.01. The business had revenue of $314.64 million during the quarter, compared to analyst estimates of $296.84 million. Tempus AI had a negative return on equity of 122.86% and a negative net margin of 20.98%. Tempus AI's quarterly revenue was up 89.5% compared to the same quarter last year. During the same quarter in the prior year, the company posted ($6.86) EPS. As a group, sell-side analysts forecast that Tempus AI will post -6.15 EPS for the current year.

Insider Buying and Selling at Tempus AI

In other Tempus AI news, COO Ryan Fukushima sold 5,000 shares of the firm's stock in a transaction dated Monday, July 7th. The stock was sold at an average price of $60.00, for a total transaction of $300,000.00. Following the sale, the chief operating officer directly owned 145,000 shares of the company's stock, valued at $8,700,000. This trade represents a 3.33% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Jennifer A. Doudna sold 625 shares of the firm's stock in a transaction dated Tuesday, July 1st. The shares were sold at an average price of $62.52, for a total value of $39,075.00. Following the sale, the director directly owned 26,554 shares in the company, valued at approximately $1,660,156.08. This represents a 2.30% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders sold 758,772 shares of company stock valued at $51,005,175. 27.60% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Vanguard Group Inc. grew its position in Tempus AI by 6,247.5% in the first quarter. Vanguard Group Inc. now owns 5,995,117 shares of the company's stock worth $289,204,000 after acquiring an additional 5,900,668 shares in the last quarter. ARK Investment Management LLC grew its position in Tempus AI by 35.9% in the first quarter. ARK Investment Management LLC now owns 7,501,399 shares of the company's stock worth $361,867,000 after acquiring an additional 1,981,755 shares in the last quarter. Nikko Asset Management Americas Inc. grew its position in Tempus AI by 31.5% in the first quarter. Nikko Asset Management Americas Inc. now owns 4,260,553 shares of the company's stock worth $205,401,000 after acquiring an additional 1,021,460 shares in the last quarter. Sumitomo Mitsui Trust Group Inc. grew its position in Tempus AI by 31.4% in the first quarter. Sumitomo Mitsui Trust Group Inc. now owns 4,255,477 shares of the company's stock worth $205,284,000 after acquiring an additional 1,016,384 shares in the last quarter. Finally, Mariner LLC purchased a new position in Tempus AI in the fourth quarter worth about $31,187,000. Hedge funds and other institutional investors own 24.22% of the company's stock.

About Tempus AI

Tempus AI Inc is a technology company advancing precision medicine through the practical application of artificial intelligence principally in healthcare. The company provides AI-enabled precision medicine solutions to physicians to deliver personalized patient care and in parallel facilitates discovery, development and delivery of optimal therapeutics.

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