Tempus AI (NASDAQ:TEM) Downgraded by Wall Street Zen to "Sell"

Key Points

• Wall Street Zen downgraded Tempus AI from “hold” to “sell,” adding to a mixed analyst backdrop for the stock. Overall, MarketBeat says consensus remains “hold” with an average price target of $68.54.
• Tempus AI reported better-than-expected first-quarter earnings, posting EPS of -$0.13 versus the -$0.21 estimate and revenue of $348.12 million, up 36.1% year over year. Despite the beat, the company remains unprofitable with negative net margin and return on equity.
• Insider selling has been notable, including share sales by CEO Ryan Fukushima and EVP Andrew Polovin, with insiders selling 572,759 shares worth about $29.2 million over the last three months. Institutional ownership remains significant at about 24.22%.

Tempus AI (NASDAQ:TEM - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "hold" rating to a "sell" rating in a research report issued to clients and investors on Saturday.

A number of other research firms also recently commented on TEM. Weiss Ratings reiterated a "sell (e+)" rating on shares of Tempus AI in a research report on Wednesday, June 17th. Guggenheim reduced their price objective on Tempus AI from $95.00 to $60.00 and set a "buy" rating on the stock in a research note on Monday, March 30th. BTIG Research reaffirmed a "buy" rating and issued a $80.00 price objective on shares of Tempus AI in a research note on Monday, June 1st. HC Wainwright decreased their price objective on Tempus AI from $95.00 to $64.00 and set a "buy" rating on the stock in a report on Monday, May 11th. Finally, Needham & Company LLC reiterated a "buy" rating and set a $75.00 target price on shares of Tempus AI in a research report on Monday, June 1st. Nine research analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, Tempus AI currently has a consensus rating of "Hold" and an average price target of $68.54.

Tempus AI Stock Performance

Shares of NASDAQ TEM opened at $60.27 on Friday. 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 52-week low of $41.73 and a 52-week high of $104.32. The company has a debt-to-equity ratio of 2.96, a quick ratio of 3.15 and a current ratio of 3.31. The firm's fifty day moving average is $50.48 and its two-hundred day moving average is $54.57.

Tempus AI (NASDAQ:TEM - Get Free Report) last released its quarterly earnings data on Tuesday, May 5th. The company reported ($0.13) 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 the consensus estimate 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 quarter in the prior year, the firm earned ($0.24) EPS. As a group, analysts anticipate that Tempus AI will post -1.35 EPS for the current fiscal year.

Insider Activity at Tempus AI

In other news, CEO Ryan Fukushima sold 13,550 shares of the stock in a transaction on Tuesday, May 19th. The shares were sold at an average price of $44.07, for a total value of $597,148.50. Following the sale, the chief executive officer owned 603,558 shares of the company's stock, valued at approximately $26,598,801.06. This represents a 2.20% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, EVP Andrew Polovin sold 8,703 shares of the firm's stock in a transaction dated Tuesday, May 19th. The stock was sold at an average price of $44.07, for a total transaction of $383,541.21. Following the completion of the sale, the executive vice president owned 128,215 shares of the company's stock, valued at $5,650,435.05. This trade represents a 6.36% 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. Insiders sold 572,759 shares of company stock valued at $29,238,424 over the last three months. Corporate insiders own 24.26% of the company's stock.

Hedge Funds Weigh In On Tempus AI

Hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc. boosted its position in shares of Tempus AI by 8.7% during the fourth quarter. Vanguard Group Inc. now owns 10,258,621 shares of the company's stock valued at $605,772,000 after buying an additional 817,014 shares during the period. ARK Investment Management LLC raised its holdings in shares of Tempus AI by 5.3% in the fourth quarter. ARK Investment Management LLC now owns 7,557,583 shares of the company's stock worth $446,275,000 after buying an additional 381,816 shares during the period. GC Wealth Management RIA LLC bought a new stake in shares of Tempus AI during the 4th quarter worth approximately $399,267,000. Sumitomo Mitsui Trust Group Inc. lifted its stake 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 worth $195,636,000 after acquiring an additional 821,490 shares during the last quarter. Finally, Amova Asset Management Americas Inc. lifted its stake in shares of Tempus AI by 23.4% during the 1st quarter. Amova Asset Management Americas Inc. now owns 4,326,313 shares of the company's stock worth $195,549,000 after acquiring an additional 821,490 shares during the last quarter. 24.22% of the stock is currently 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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