Tempus AI (NASDAQ:TEM) Shares Down 4.1% - What's Next?

Key Points

• Tempus AI's stock fell by 4.1% on Wednesday, trading as low as $55.27, significantly down from its previous close of $57.74, with trading volume down by 85% compared to the average.
• Despite today's decline, several analysts continue to hold a positive outlook on Tempus AI, with a consensus rating of "Moderate Buy" and a target price of $65.09.
• In recent transactions, insiders have sold a total of 758,772 shares in the last three months, equating to approximately $51 million, indicating potential concerns about the company's valuation.

Tempus AI, Inc. (NASDAQ:TEM - Get Free Report) fell 4.1% during mid-day trading on Wednesday . The stock traded as low as $55.27 and last traded at $55.40. 1,886,240 shares traded hands during mid-day trading, a decline of 85% from the average session volume of 12,370,771 shares. The stock had previously closed at $57.74.

Analyst Upgrades and Downgrades

TEM has been the topic of several research reports. BTIG Research initiated coverage on Tempus AI in a research report on Monday, April 21st. They set a "buy" rating and a $60.00 price objective on the stock. Needham & Company LLC reaffirmed a "buy" rating and set a $70.00 price objective on shares of Tempus AI in a research report on Wednesday, May 7th. Bank of America lifted their price objective on Tempus AI from $68.00 to $70.00 and gave the company a "neutral" rating in a research report on Wednesday, June 25th. Morgan Stanley lifted their target price on shares of Tempus AI from $60.00 to $65.00 and gave the company an "overweight" rating in a report on Friday, May 9th. Finally, Piper Sandler lifted their target price on shares of Tempus AI from $55.00 to $70.00 and gave the company a "neutral" rating in a report on Thursday, May 15th. Six investment analysts have rated the stock with a hold rating and six have given a buy rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $65.09.

Tempus AI Price Performance

The company has a current ratio of 1.71, a quick ratio of 1.56 and a debt-to-equity ratio of 2.45. The stock has a market capitalization of $9.61 billion, a PE ratio of -7.11 and a beta of 4.98. The firm has a 50 day moving average price of $62.21 and a 200 day moving average price of $57.76.

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

Insider Buying and Selling at Tempus AI

In other Tempus AI news, EVP Andrew Polovin sold 17,552 shares of the stock in a transaction dated Tuesday, May 20th. The shares were sold at an average price of $63.43, for a total transaction of $1,113,323.36. Following the completion of the transaction, the executive vice president owned 138,877 shares of the company's stock, valued at $8,808,968.11. This represents a 11.22% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Erik Phelps sold 51,317 shares of the stock in a transaction dated Monday, June 16th. The shares were sold at an average price of $72.56, for a total transaction of $3,723,561.52. Following the transaction, the executive vice president directly owned 97,779 shares of the company's stock, valued at $7,094,844.24. This trade represents a 34.42% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 758,772 shares of company stock worth $51,005,175. Insiders own 27.60% of the company's stock.

Institutional Trading of Tempus AI

Several institutional investors have recently added to or reduced their stakes in the company. ARK Investment Management LLC lifted its stake in Tempus AI by 35.9% in the first quarter. ARK Investment Management LLC now owns 7,501,399 shares of the company's stock worth $361,867,000 after purchasing an additional 1,981,755 shares during the last quarter. Vanguard Group Inc. increased its holdings in Tempus AI by 6,247.5% during the first quarter. Vanguard Group Inc. now owns 5,995,117 shares of the company's stock valued at $289,204,000 after buying an additional 5,900,668 shares during the period. Nikko Asset Management Americas Inc. increased its holdings in Tempus AI by 31.5% during the first quarter. Nikko Asset Management Americas Inc. now owns 4,260,553 shares of the company's stock valued at $205,401,000 after buying an additional 1,021,460 shares during the period. Sumitomo Mitsui Trust Group Inc. boosted its stake in Tempus AI by 31.4% in the first quarter. Sumitomo Mitsui Trust Group Inc. now owns 4,255,477 shares of the company's stock valued at $205,284,000 after acquiring an additional 1,016,384 shares in the last quarter. Finally, Frontier Capital Management Co. LLC boosted its stake in Tempus AI by 236.2% in the fourth quarter. Frontier Capital Management Co. LLC now owns 943,718 shares of the company's stock valued at $31,860,000 after acquiring an additional 663,018 shares in the last quarter. 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.

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