Tempus AI (NASDAQ:TEM) Shares Down 3.6% - Here's Why

Key Points

• Tempus AI (NASDAQ:TEM) shares decreased by 3.6%, closing at $54.56, with a trading volume 74% below the average.
• Despite the drop, various analysts have raised their price targets for the stock, with Morgan Stanley setting a target of $65.00 and Guggenheim at $75.00, indicating a general consensus rating of "Moderate Buy."
• Insider selling activity has increased, with CEO Eric P. Lefkofsky recently selling 166,250 shares valued at over $10 million, contributing to a total of 778,772 shares sold by insiders in the past three months.

Tempus AI, Inc. (NASDAQ:TEM - Get Free Report) shares fell 3.6% during trading on Friday . The company traded as low as $53.39 and last traded at $54.56. 3,300,926 shares traded hands during mid-day trading, a decline of 74% from the average session volume of 12,515,047 shares. The stock had previously closed at $56.59.

Analysts Set New Price Targets

TEM has been the topic of several recent research reports. Morgan Stanley raised their price target on Tempus AI from $60.00 to $65.00 and gave the stock an "overweight" rating in a research report on Friday, May 9th. Piper Sandler raised their price objective on Tempus AI from $55.00 to $70.00 and gave the stock a "neutral" rating in a research note on Thursday, May 15th. Guggenheim raised their price objective on Tempus AI from $65.00 to $75.00 and gave the stock a "buy" rating in a research note on Monday, June 30th. Needham & Company LLC reaffirmed a "buy" rating and set a $70.00 price objective on shares of Tempus AI in a research note on Wednesday, May 7th. Finally, Bank of America raised their price objective on Tempus AI from $68.00 to $70.00 and gave the stock a "neutral" rating in a research note on Wednesday, June 25th. Six research analysts have rated the stock with a hold rating and six have given a buy rating to the company. According to MarketBeat, Tempus AI has an average rating of "Moderate Buy" and an average target price of $65.09.

Tempus AI Trading Down 3.4%

The business has a 50-day simple moving average of $62.62 and a two-hundred day simple moving average of $57.13. The stock has a market cap of $9.47 billion and a price-to-earnings ratio of -7.01. The company has a debt-to-equity ratio of 2.45, a current ratio of 1.71 and a quick ratio of 1.56.

Tempus AI (NASDAQ:TEM - Get Free Report) last announced its quarterly earnings results on Tuesday, May 6th. The company reported ($0.24) earnings per share for the quarter, topping analysts' consensus estimates of ($0.27) by $0.03. The firm had revenue of $255.74 million for the quarter, compared to the consensus estimate of $248.13 million. Tempus AI had a negative return on equity of 533.21% and a negative net margin of 88.27%. The business's revenue for the quarter was up 75.4% on a year-over-year basis. Equities analysts forecast that Tempus AI, Inc. will post -6.15 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, Director Jennifer A. Doudna sold 625 shares of the business's stock in a transaction on Tuesday, July 1st. The stock was sold at an average price of $62.52, for a total value of $39,075.00. Following the completion of the sale, the director directly owned 26,554 shares in the company, valued at $1,660,156.08. The trade was a 2.30% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CEO Eric P. Lefkofsky sold 166,250 shares of the business's stock in a transaction that occurred on Monday, July 28th. The shares were sold at an average price of $62.87, for a total value of $10,452,137.50. Following the completion of the sale, the chief executive officer owned 9,274,033 shares of the company's stock, valued at approximately $583,058,454.71. This trade represents a 1.76% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 778,772 shares of company stock worth $52,052,375 over the last three months. 27.60% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Tempus AI

Several institutional investors have recently made changes to their positions in the stock. Concord Wealth Partners lifted its stake in shares of Tempus AI by 308.0% in the 2nd quarter. Concord Wealth Partners now owns 408 shares of the company's stock valued at $26,000 after acquiring an additional 308 shares during the last quarter. Cherry Tree Wealth Management LLC bought a new position in shares of Tempus AI in the 1st quarter valued at $31,000. University of Texas Texas AM Investment Management Co. bought a new position in shares of Tempus AI in the 1st quarter valued at $33,000. Operose Advisors LLC bought a new position in shares of Tempus AI in the 4th quarter valued at $25,000. Finally, Bartlett & CO. Wealth Management LLC lifted its stake in shares of Tempus AI by 100.0% in the 1st quarter. Bartlett & CO. Wealth Management LLC now owns 800 shares of the company's stock valued at $39,000 after acquiring an additional 400 shares during the last quarter. 24.22% of the stock is currently owned by institutional investors.

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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