Tempus AI (NASDAQ:TEM) Shares Down 5.2% - Should You Sell?

Key Points

• Shares fell 5.2% intraday to about $53.45 on Thursday with trading volume ~54% below average; the stock is highly volatile (beta ~4.9) and remains below its 200‑day moving average of $66.28.
• Company catalysts include the launch of a blood-based cancer test kit, a commercial collaboration with Predicta for a co‑branded whole‑genome sequencing assay, and 31 abstracts accepted at AACR, all of which could boost near‑term commercial and scientific visibility.
• Key risks: notable insider and institutional selling (563,841 shares worth ~$32.3M over the last 90 days), mixed analyst actions with an average rating of "Moderate Buy" and average price target of $71.36, and a high debt‑to‑equity ratio (2.52) that can amplify downside.

Tempus AI, Inc. (NASDAQ:TEM - Get Free Report) shares fell 5.2% during mid-day trading on Thursday . The stock traded as low as $53.48 and last traded at $53.4570. 2,509,433 shares traded hands during trading, a decline of 54% from the average session volume of 5,434,055 shares. The stock had previously closed at $56.41.

More Tempus AI News

Here are the key news stories impacting Tempus AI this week:

• Positive Sentiment: Tempus officially launched a blood-based cancer test kit — investors interpreted this as a near-term commercial catalyst and demand driver. Tempus AI (TEM) Unveils Cancer Test Kit, Soars 13.9%
• Positive Sentiment: Commercial collaboration with Predicta Biosciences to expand a co-branded whole-genome sequencing assay (GenoPredicta™) for hematologic malignancies — strengthens Tempus’ assay portfolio and commercial reach in oncology diagnostics. Tempus AI Shares Gain on Commercial Partnership With Predicta Biosciences
• Positive Sentiment: Company had 31 abstracts accepted at the AACR Annual Meeting (including one oral presentation) — boosts scientific validation and visibility for Tempus’ AI and oncology data assets. Tempus Announces 31 Abstracts for Presentation at the AACR Annual Meeting 2026
• Positive Sentiment: Analyst activity: TD Cowen raised coverage to Buy and Jefferies initiated coverage — added fresh institutional interest and helped earlier upside. Tempus AI Raised to "Buy" at TD Cowen Jefferies Initiates Coverage on Tempus AI
• Positive Sentiment: Unusual options activity: large spike in call buying (≈32,900 calls) indicates speculative bullish positioning that likely amplified recent intraday moves.
• Neutral Sentiment: Investor visibility from conferences and product demos (Needham conference presentation, abstracts, and new “Active Follow-Up” workflow) is driving attention but may be more sentiment than immediate revenue. Needham Conference Transcript
• Negative Sentiment: Heavy insider and institutional selling highlighted in recent summaries (multiple insider sales and large fund redemptions/rotations) — increases likelihood of near-term selling pressure. QuiverQuant coverage noting insider selling and activity
• Negative Sentiment: Technical and balance-sheet context: stock remains volatile (beta ~4.9), is below its 200‑day moving average, and has a notable debt-to-equity ratio — factors that can amplify downward moves during profit-taking or market weakness.

Analyst Ratings Changes

Several research firms have recently issued reports on TEM. Wall Street Zen cut Tempus AI from a "hold" rating to a "sell" rating in a research note on Saturday, February 28th. Morgan Stanley dropped their price target on Tempus AI from $85.00 to $70.00 and set an "overweight" rating on the stock in a research report on Tuesday, March 3rd. JPMorgan Chase & Co. dropped their price target on Tempus AI from $80.00 to $60.00 and set a "neutral" rating on the stock in a research report on Wednesday, February 25th. Canaccord Genuity Group dropped their price target on Tempus AI from $95.00 to $80.00 and set a "buy" rating on the stock in a research report on Monday, December 22nd. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of Tempus AI in a research report on Thursday, January 22nd. 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 stock. According to data from MarketBeat.com, Tempus AI presently has an average rating of "Moderate Buy" and an average price target of $71.36.

Tempus AI Stock Down 3.2%

The company has a quick ratio of 3.00, a current ratio of 3.13 and a debt-to-equity ratio of 2.52. The company has a market capitalization of $9.76 billion, a P/E ratio of -38.71 and a beta of 4.90. The company has a 50-day moving average of $50.78 and a two-hundred day moving average of $66.28.

Insider Activity at Tempus AI

In other Tempus AI news, EVP Andrew Polovin sold 10,949 shares of the business's stock in a transaction on Friday, February 20th. The stock was sold at an average price of $60.31, for a total value of $660,334.19. Following the sale, the executive vice president directly owned 126,918 shares of the company's stock, valued at approximately $7,654,424.58. The trade was a 7.94% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Eric P. Lefkofsky sold 166,250 shares of the business's stock in a transaction on Thursday, March 26th. The stock was sold at an average price of $46.38, for a total value of $7,710,675.00. Following the completion of the sale, the chief executive officer directly owned 8,875,033 shares in the company, valued at $411,624,030.54. This trade represents a 1.84% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 563,841 shares of company stock valued at $32,258,311 over the last ninety days. Insiders own 26.27% of the company's stock.

Institutional Investors Weigh In On Tempus AI

Several hedge funds have recently added to or reduced their stakes in the stock. Vanguard Group Inc. boosted its holdings in Tempus AI by 8.7% in the fourth quarter. Vanguard Group Inc. now owns 10,258,621 shares of the company's stock worth $605,772,000 after acquiring an additional 817,014 shares in the last quarter. ARK Investment Management LLC boosted its holdings in Tempus AI by 5.3% in the fourth 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 stake in Tempus AI in the fourth quarter worth $399,267,000. Sumitomo Mitsui Trust Group Inc. boosted its holdings in Tempus AI by 1.2% in the fourth quarter. Sumitomo Mitsui Trust Group Inc. now owns 3,504,823 shares of the company's stock worth $206,960,000 after acquiring an additional 41,728 shares in the last quarter. Finally, Amova Asset Management Americas Inc. boosted its holdings in Tempus AI by 1.2% in the fourth quarter. Amova Asset Management Americas Inc. now owns 3,504,823 shares of the company's stock worth $206,960,000 after acquiring an additional 41,728 shares in the last quarter. 24.22% of the stock is owned by institutional investors.

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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