Tempus AI (NASDAQ:TEM) Shares Down 2.5% - Time to Sell?

Key Points

• Tempus AI's stock fell 2.5% to $76.20, with trading volume down 70% from its average session volume, indicating a potential decline in investor interest.
• Multiple brokerages have updated their ratings and target prices for Tempus AI, with BTIG Research raising its target from $75.00 to $85.00, while maintaining a "buy" rating.
• The company reported a quarterly revenue increase of 89.5% year-over-year, posting $314.64 million, while its earnings per share slightly beat estimates, signaling positive financial momentum despite ongoing losses.

Shares of Tempus AI, Inc. (NASDAQ:TEM - Get Free Report) fell 2.5% on Friday . The stock traded as low as $76.41 and last traded at $76.20. 3,643,130 shares were traded during trading, a decline of 70% from the average session volume of 12,336,078 shares. The stock had previously closed at $78.12.

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on TEM. Piper Sandler reiterated a "neutral" rating on shares of Tempus AI in a research report on Friday, August 8th. BTIG Research raised their target price on Tempus AI from $75.00 to $85.00 and gave the stock a "buy" rating in a research report on Wednesday, August 20th. Morgan Stanley raised their target price on Tempus AI from $65.00 to $68.00 and gave the company an "overweight" rating in a research note on Tuesday, August 12th. HC Wainwright assumed coverage on Tempus AI in a report on Tuesday. They set a "buy" rating and a $90.00 target price on the stock. Finally, Bank of America boosted their target price on Tempus AI from $68.00 to $70.00 and gave the company a "neutral" rating in a research note on Wednesday, June 25th. Seven research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $69.50.

Tempus AI Stock Up 1.9%

The company has a debt-to-equity ratio of 2.58, a current ratio of 1.54 and a quick ratio of 1.43. The stock has a fifty day moving average price of $65.12 and a two-hundred day moving average price of $59.24. The company has a market cap of $13.83 billion, a P/E ratio of -66.91 and a beta of 5.08.

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

Insider Buying and Selling at Tempus AI

In other Tempus AI news, EVP Erik Phelps sold 51,317 shares of the company's stock in a transaction that occurred on Monday, June 16th. The stock was sold at an average price of $72.56, for a total transaction of $3,723,561.52. Following the completion of the transaction, the executive vice president owned 97,779 shares of the company's stock, valued at $7,094,844.24. This represents a 34.42% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, COO Ryan Fukushima sold 17,460 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 $1,303,389.00. Following the completion of the sale, the chief operating officer owned 839,180 shares in the company, valued at $62,644,787. The trade was a 2.04% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 1,108,951 shares of company stock worth $77,660,938 over the last three months. 26.27% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in TEM. First Horizon Advisors Inc. grew its position in Tempus AI by 12.7% in the first quarter. First Horizon Advisors Inc. now owns 1,849 shares of the company's stock worth $89,000 after acquiring an additional 208 shares in the last quarter. China Universal Asset Management Co. Ltd. grew its holdings in Tempus AI by 0.7% in the second quarter. China Universal Asset Management Co. Ltd. now owns 33,757 shares of the company's stock worth $2,145,000 after purchasing an additional 226 shares during the last quarter. Wells Fargo & Company MN grew its holdings in shares of Tempus AI by 13.2% during the fourth quarter. Wells Fargo & Company MN now owns 2,384 shares of the company's stock valued at $80,000 after buying an additional 278 shares during the last quarter. PNC Financial Services Group Inc. grew its holdings in shares of Tempus AI by 6.1% during the second quarter. PNC Financial Services Group Inc. now owns 5,003 shares of the company's stock valued at $318,000 after buying an additional 287 shares during the last quarter. Finally, Concord Wealth Partners boosted its holdings in Tempus AI by 308.0% in the second quarter. Concord Wealth Partners now owns 408 shares of the company's stock valued at $26,000 after purchasing an additional 308 shares during the last quarter. Hedge funds and other institutional investors own 24.22% of the company's stock.

Tempus AI Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.