Tempus AI (NASDAQ:TEM) Receives "Buy" Rating from Needham & Company LLC

Key Points

• Needham & Company LLC reiterated its “buy” rating on Tempus AI and kept a $75 price target, implying roughly 48.6% upside from the prior close.
• Tempus AI’s latest quarterly results beat expectations, with EPS of -$0.13 versus the -$0.21 estimate and revenue of $348.1 million, up 36.1% year over year.
• Insider selling was notable: the CFO and CEO both sold shares in May, while institutional ownership remains significant with firms like Vanguard and ARK holding large positions.

Tempus AI (NASDAQ:TEM - Get Free Report)'s stock had its "buy" rating reissued by Needham & Company LLC in a research report issued to clients and investors on Monday,Benzinga reports. They currently have a $75.00 price target on the stock. Needham & Company LLC's price target suggests a potential upside of 48.60% from the stock's previous close.

Other analysts have also recently issued research reports about the stock. JPMorgan Chase & Co. decreased their price target on shares of Tempus AI from $80.00 to $60.00 and set a "neutral" rating on the stock in a research note on Wednesday, February 25th. BTIG Research decreased their price target on shares of Tempus AI from $90.00 to $80.00 and set a "buy" rating on the stock in a research note on Friday, May 8th. Stifel Nicolaus set a $60.00 price target on shares of Tempus AI in a research note on Wednesday, February 25th. TD Cowen upped their target price on shares of Tempus AI from $65.00 to $68.00 and gave the company a "buy" rating in a research report on Wednesday, May 6th. Finally, HC Wainwright decreased their target price on shares of Tempus AI from $95.00 to $64.00 and set a "buy" rating on the stock in a research report on Monday, May 11th. Nine research analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $68.64.

Tempus AI Price Performance

TEM opened at $50.47 on Monday. The stock has a market cap of $9.06 billion, a price-to-earnings ratio of -29.34 and a beta of 3.64. Tempus AI has a fifty-two week low of $41.73 and a fifty-two 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 $48.73 and its 200 day moving average is $58.10.

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, topping the consensus estimate of ($0.21) by $0.08. The business had revenue of $348.12 million for the quarter, compared to analysts' expectations 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 quarterly revenue was up 36.1% compared to the same quarter last year. During the same quarter in the previous year, the company earned ($0.24) EPS. On average, sell-side analysts forecast that Tempus AI will post -1.35 earnings per share for the current fiscal year.

Insider Activity

In other news, CFO James William Rogers sold 10,853 shares of the company's stock in a transaction dated Tuesday, May 19th. The shares were sold at an average price of $44.07, for a total transaction of $478,291.71. Following the sale, the chief financial officer directly owned 126,395 shares in the company, valued at approximately $5,570,227.65. This represents a 7.91% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Ryan Fukushima sold 13,550 shares of the stock in a transaction dated Tuesday, May 19th. The stock was sold at an average price of $44.07, for a total transaction of $597,148.50. Following the completion of the sale, the chief executive officer directly owned 603,558 shares in the company, valued at $26,598,801.06. This trade represents a 2.20% decrease in their ownership of the stock. 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. In the last three months, insiders sold 558,307 shares of company stock worth $26,599,589. 24.26% of the stock is owned by insiders.

Institutional Trading of Tempus AI

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. raised its position in Tempus AI by 8.7% in the 4th quarter. Vanguard Group Inc. now owns 10,258,621 shares of the company's stock worth $605,772,000 after purchasing an additional 817,014 shares during the period. ARK Investment Management LLC grew its stake in Tempus AI by 5.3% in the 4th quarter. ARK Investment Management LLC now owns 7,557,583 shares of the company's stock worth $446,275,000 after acquiring an additional 381,816 shares in the last quarter. GC Wealth Management RIA LLC bought a new position in Tempus AI in the 4th quarter worth about $399,267,000. Sumitomo Mitsui Trust Group Inc. grew its stake in Tempus AI by 23.4% in 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 in the last quarter. Finally, Amova Asset Management Americas Inc. grew its stake in Tempus AI by 23.4% in 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 in the last quarter. 24.22% of the stock is owned by hedge funds and other 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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