Tempus AI (NASDAQ:TEM) Sees Strong Trading Volume Following Analyst Upgrade

Key Points

• BTIG Research raised Tempus AI’s price target from $70 to $80 while maintaining a Buy rating, helping drive a 6.9% share-price increase to approximately $66.21 on strong trading volume.
• Analyst sentiment remains mixed: nine firms rate the stock Buy, six Hold, and two Sell, producing a consensus Hold rating and an average price target of $65.69.
• Tempus AI reported better-than-expected quarterly results, with adjusted EPS of negative $0.04 versus expectations of negative $0.14 and revenue of $382.49 million, up 21.6% year over year; however, the company remains unprofitable.

Tempus AI, Inc. (NASDAQ:TEM - Get Free Report) shares saw strong trading volume on Thursday after BTIG Research raised their price target on the stock from $70.00 to $80.00. BTIG Research currently has a buy rating on the stock. 4,573,710 shares changed hands during mid-day trading, a decline of 21% from the previous session's volume of 5,825,256 shares.The stock last traded at $66.2140 and had previously closed at $61.25.

Several other research firms also recently issued reports on TEM. Piper Sandler decreased their price target on Tempus AI from $58.00 to $56.00 and set a "neutral" rating for the company in a research note on Tuesday, August 4th. Guggenheim boosted their target price on Tempus AI from $60.00 to $65.00 and gave the stock a "buy" rating in a report on Thursday, July 16th. Wolfe Research began coverage on Tempus AI in a research report on Tuesday, June 2nd. They set a "peer perform" rating for the company. Weiss Ratings upgraded Tempus AI from a "sell (e+)" rating to a "sell (d-)" rating in a report on Wednesday, August 12th. Finally, Freedom Capital raised shares of Tempus AI to a "hold" rating in a research report on Tuesday, June 30th. Nine analysts have rated the stock with a Buy rating, six have issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, Tempus AI presently has a consensus rating of "Hold" and a consensus target price of $65.69.

Insider Activity at Tempus AI

In related news, CFO James William Rogers sold 11,529 shares of the stock in a transaction dated Thursday, June 25th. The shares were sold at an average price of $55.00, for a total value of $634,095.00. Following the completion of the sale, the chief financial officer owned 114,866 shares in the company, valued at approximately $6,317,630. This trade represents a 9.12% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Ryan Fukushima sold 33,284 shares of Tempus AI stock in a transaction dated Wednesday, July 8th. The stock was sold at an average price of $57.39, for a total value of $1,910,168.76. Following the sale, 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 SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 684,424 shares of company stock worth $33,255,565 over the last ninety days. Corporate insiders own 24.26% of the company's stock.

Institutional Trading of Tempus AI

A number of institutional investors and hedge funds have recently modified their holdings of TEM. Royal Bank of Canada lifted its position in Tempus AI by 201.2% in the first quarter. Royal Bank of Canada now owns 25,988 shares of the company's stock worth $1,253,000 after purchasing an additional 17,359 shares during the period. Rhumbline Advisers bought a new stake in Tempus AI in the 1st quarter valued at $116,000. Prudential Financial Inc. bought a new stake in Tempus AI in the 2nd quarter valued at $276,000. Russell Investments Group Ltd. raised its stake in shares of Tempus AI by 21.3% in the 2nd quarter. Russell Investments Group Ltd. now owns 6,527 shares of the company's stock valued at $415,000 after buying an additional 1,146 shares in the last quarter. Finally, Invesco Ltd. raised its stake in shares of Tempus AI by 2,926.6% in the 2nd quarter. Invesco Ltd. now owns 211,621 shares of the company's stock valued at $13,446,000 after buying an additional 204,629 shares in the last quarter. 24.22% of the stock is currently owned by institutional investors.

Tempus AI Stock Up 6.9%

The business's fifty day moving average price is $52.10 and its 200 day moving average price is $51.16. The company has a market capitalization of $11.81 billion, a P/E ratio of -45.47 and a beta of 3.58. The company has a current ratio of 3.30, a quick ratio of 3.16 and a debt-to-equity ratio of 3.06.

Tempus AI (NASDAQ:TEM - Get Free Report) last posted its earnings results on Thursday, July 30th. The company reported ($0.04) earnings per share for the quarter, beating analysts' consensus estimates of ($0.14) by $0.10. Tempus AI had a negative net margin of 17.77% and a negative return on equity of 50.28%. The business had revenue of $382.49 million for the quarter, compared to analysts' expectations of $379.69 million. During the same quarter in the previous year, the firm posted ($0.22) earnings per share. The firm's revenue for the quarter was up 21.6% on a year-over-year basis. As a group, equities research analysts predict that Tempus AI, Inc. will post -1.38 earnings per share for the current fiscal year.

About Tempus AI

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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