Tempus AI (NASDAQ:TEM) Hits New 52-Week Low - Time to Sell?

Key Points

• Tempus AI fell to a new 52-week low of $41.46, well below its 50-day and 200-day moving averages, amid high volatility and ongoing losses.
• Analyst sentiment is mixed but leans cautiously positive: nine analysts rate the stock a Buy, five rate it Hold, and two rate it Sell. The consensus rating is Hold, with a price target of $68.92.
• The company’s latest quarter beat expectations, with revenue rising 36.1% year over year to $348.12 million and a narrower-than-expected loss, but insiders sold about $23.25 million of stock over the past 90 days.

Tempus AI, Inc. (NASDAQ:TEM - Get Free Report) hit a new 52-week low on Tuesday . The stock traded as low as $41.46 and last traded at $41.4930, with a volume of 613604 shares. The stock had previously closed at $42.91.

Analyst Upgrades and Downgrades

TEM has been the subject of a number of recent analyst reports. HC Wainwright restated a "buy" rating on shares of Tempus AI in a report on Friday. BTIG Research reiterated a "buy" rating and issued a $80.00 target price on shares of Tempus AI in a research note on Monday, June 1st. Wall Street Zen upgraded Tempus AI from a "sell" rating to a "hold" rating in a research report on Saturday. Freedom Capital raised shares of Tempus AI to a "hold" rating in a research note on Tuesday, June 30th. Finally, Weiss Ratings restated a "sell (e+)" rating on shares of Tempus AI in a report on Wednesday, June 17th. Nine research analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus price target of $68.92.

Tempus AI Stock Down 0.6%

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 company has a fifty day simple moving average of $51.63 and a two-hundred day simple moving average of $53.30. The firm has a market capitalization of $7.66 billion, a PE ratio of -24.74 and a beta of 3.46.

Tempus AI (NASDAQ:TEM - Get Free Report) last announced its quarterly earnings results on Tuesday, May 5th. The company reported ($0.13) 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 for the quarter, compared to analyst estimates of $345.44 million. During the same quarter last year, the firm posted ($0.24) earnings per share. The business's revenue for the quarter was up 36.1% on a year-over-year basis. Analysts forecast that Tempus AI, Inc. will post -1.35 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, CEO Ryan Fukushima sold 33,284 shares of the stock in a transaction that occurred on Wednesday, July 8th. The shares were sold at an average price of $57.39, for a total transaction of $1,910,168.76. Following the transaction, the chief executive officer directly owned 167,763 shares in the company, valued at approximately $9,627,918.57. This trade represents a 16.56% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Jennifer A. Doudna sold 2,673 shares of Tempus AI stock in a transaction that occurred on Thursday, June 25th. The shares were sold at an average price of $55.00, for a total transaction of $147,015.00. Following the transaction, the director directly owned 25,942 shares in the company, valued at approximately $1,426,810. The trade was a 9.34% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 449,793 shares of company stock worth $23,248,231. 24.26% of the stock is owned by corporate insiders.

Institutional Trading of Tempus AI

Hedge funds have recently bought and sold shares of the stock. GC Wealth Management RIA LLC purchased a new position in shares of Tempus AI in the 4th quarter valued at $399,267,000. Voloridge Investment Management LLC lifted its stake 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 purchasing an additional 1,039,176 shares during the last quarter. AQR Capital Management LLC purchased a new stake in shares of Tempus AI during the 2nd quarter worth $54,020,000. Sumitomo Mitsui Trust Group Inc. boosted its position in Tempus AI by 23.4% during the first quarter. Sumitomo Mitsui Trust Group Inc. now owns 4,326,313 shares of the company's stock valued at $195,636,000 after purchasing an additional 821,490 shares in the last quarter. Finally, Amova Asset Management Americas Inc. boosted its position in Tempus AI by 23.4% during the first quarter. Amova Asset Management Americas Inc. now owns 4,326,313 shares of the company's stock valued at $195,549,000 after purchasing an additional 821,490 shares in the last quarter. Hedge funds and other institutional investors own 24.22% of the company's stock.

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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