Tempus AI (NASDAQ:TEM) Hits New 12-Month High - Time to Buy?

Key Points

• Tempus AI's stock price reached a new 52-week high, trading at $97.79, with an average price target of $70.17 from analysts describing it as a "Moderate Buy."
• Despite the gains, the company reported a negative earnings per share of ($0.22) for the last quarter, which was better than the expected ($0.23) but shows ongoing financial struggles.
• Insider selling activity was noted, with CEO Eric P. Lefkofsky selling 332,500 shares for over $24 million, indicating a 3.49% decrease in his ownership stake in the company.

Tempus AI, Inc. (NASDAQ:TEM - Get Free Report)'s stock price reached a new 52-week high during trading on Tuesday . The company traded as high as $97.79 and last traded at $85.87, with a volume of 20972634 shares trading hands. The stock had previously closed at $88.24.

Analyst Upgrades and Downgrades

A number of equities research analysts have commented on the company. HC Wainwright lifted their target price on Tempus AI from $90.00 to $98.00 and gave the company a "buy" rating in a research report on Friday, September 12th. BTIG Research boosted their price objective on Tempus AI from $75.00 to $85.00 and gave the company a "buy" rating in a report on Wednesday, August 20th. Morgan Stanley boosted their price objective on Tempus AI from $65.00 to $68.00 and gave the company an "overweight" rating in a report on Tuesday, August 12th. Bank of America boosted their price objective on Tempus AI from $68.00 to $70.00 and gave the company a "neutral" rating in a report on Wednesday, June 25th. Finally, Needham & Company LLC reiterated a "buy" rating and issued a $70.00 price objective on shares of Tempus AI in a report on Friday, August 8th. Seven equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company's stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $70.17.

Tempus AI Stock Down 2.7%

The stock has a market cap of $14.92 billion, a price-to-earnings ratio of -72.16 and a beta of 5.07. The company has a quick ratio of 1.43, a current ratio of 1.54 and a debt-to-equity ratio of 2.58. The stock has a fifty day moving average of $71.02 and a two-hundred day moving average of $61.08.

Tempus AI (NASDAQ:TEM - Get Free Report) last released its quarterly earnings data on Friday, August 8th. The company reported ($0.22) EPS for the quarter, beating the consensus estimate of ($0.23) by $0.01. Tempus AI had a negative return on equity of 122.86% and a negative net margin of 20.98%.The company had revenue of $314.64 million for the quarter, compared to analyst estimates of $296.84 million. During the same period last year, the company posted ($6.86) earnings per share. The firm's revenue was up 89.5% compared to the same quarter last year. Tempus AI has set its FY 2025 guidance at EPS. As a group, analysts predict that Tempus AI, Inc. will post -6.15 EPS for the current fiscal year.

Insiders Place Their Bets

In other Tempus AI news, CEO Eric P. Lefkofsky sold 332,500 shares of the company's stock in a transaction that occurred on Wednesday, August 27th. The stock was sold at an average price of $74.10, for a total value of $24,638,250.00. Following the completion of the sale, the chief executive officer directly owned 9,207,533 shares in the company, valued at $682,278,195.30. This represents a 3.49% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO James William Rogers sold 7,528 shares of the company's stock in a transaction that occurred on Tuesday, August 19th. The stock was sold at an average price of $74.65, for a total value of $561,965.20. Following the completion of the sale, the chief financial officer owned 138,473 shares of the company's stock, valued at $10,337,009.45. This trade represents a 5.16% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 601,787 shares of company stock valued at $42,492,268. 26.27% of the stock is owned by company insiders.

Institutional Trading of Tempus AI

Large investors have recently added to or reduced their stakes in the company. China Universal Asset Management Co. Ltd. raised its holdings in shares of Tempus AI by 0.7% during the second quarter. China Universal Asset Management Co. Ltd. now owns 33,757 shares of the company's stock worth $2,145,000 after acquiring an additional 226 shares in the last quarter. Marex Group plc bought a new position in Tempus AI during the second quarter worth about $26,620,000. Pitcairn Co. bought a new position in Tempus AI during the second quarter worth about $317,000. Tyler Stone Wealth Management raised its stake in shares of Tempus AI by 10.0% in the second quarter. Tyler Stone Wealth Management now owns 8,800 shares of the company's stock valued at $559,000 after acquiring an additional 800 shares during the last quarter. Finally, Nomura Holdings Inc. raised its stake in shares of Tempus AI by 116.6% in the second quarter. Nomura Holdings Inc. now owns 45,860 shares of the company's stock valued at $2,914,000 after acquiring an additional 24,689 shares during the last quarter. 24.22% of the stock is owned by institutional investors and hedge funds.

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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