Tempus AI (NASDAQ:TEM) Shares Down 5.3% - Here's What Happened

Key Points

• Tempus AI, Inc. (NASDAQ:TEM) shares fell 5.3% during mid-day trading, with current trades at approximately $58.74, significantly below its previous closing price of $62.00.
• Analysts have mixed views with a consensus target price of $65.09, while ratings include six "buy" ratings and six "hold" ratings, indicating a cautious outlook on the stock.
• CEO Eric P. Lefkofsky recently sold 250,000 shares at an average price of $70.07, reflecting a 2.60% decrease in his position, raising concerns about insider sentiment.

Tempus AI, Inc. (NASDAQ:TEM - Get Free Report)'s stock price was down 5.3% during mid-day trading on Tuesday . The stock traded as low as $58.65 and last traded at $58.74. Approximately 4,279,669 shares traded hands during trading, a decline of 66% from the average daily volume of 12,610,752 shares. The stock had previously closed at $62.00.

Analyst Ratings Changes

Several analysts recently issued reports on TEM shares. Piper Sandler increased their target price on Tempus AI from $55.00 to $70.00 and gave the stock a "neutral" rating in a research report on Thursday, May 15th. Needham & Company LLC reiterated a "buy" rating and set a $70.00 target price on shares of Tempus AI in a research report on Wednesday, May 7th. Guggenheim increased their target price on Tempus AI from $65.00 to $75.00 and gave the stock a "buy" rating in a research report on Monday, June 30th. BTIG Research initiated coverage on Tempus AI in a research report on Monday, April 21st. They set a "buy" rating and a $60.00 target price for the company. Finally, Morgan Stanley raised their price target on Tempus AI from $60.00 to $65.00 and gave the company an "overweight" rating in a report on Friday, May 9th. Six analysts have rated the stock with a hold rating and six have issued a buy rating to the stock. Based on data from MarketBeat.com, Tempus AI has an average rating of "Moderate Buy" and a consensus price target of $65.09.

Tempus AI Price Performance

The firm has a market cap of $9.55 billion and a PE ratio of -7.05. The firm has a fifty day simple moving average of $62.62 and a two-hundred day simple moving average of $57.13. The company has a debt-to-equity ratio of 2.45, a quick ratio of 1.56 and a current ratio of 1.71.

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

Insiders Place Their Bets

In related news, CEO Eric P. Lefkofsky sold 166,250 shares of the stock in a transaction dated 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 sale, the chief executive officer directly owned 9,274,033 shares of the company's stock, valued at $583,058,454.71. This represents a 1.76% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, EVP Erik Phelps sold 51,317 shares of the stock in a transaction dated 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 sale, the executive vice president directly owned 97,779 shares in the company, valued at $7,094,844.24. This trade represents a 34.42% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 778,772 shares of company stock worth $52,052,375. 27.60% of the stock is currently owned by company insiders.

Institutional Trading of Tempus AI

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in TEM. First Horizon Advisors Inc. boosted its holdings in Tempus AI by 12.7% during the 1st quarter. First Horizon Advisors Inc. now owns 1,849 shares of the company's stock valued at $89,000 after acquiring an additional 208 shares during the period. Wells Fargo & Company MN boosted its holdings in Tempus AI by 13.2% during the 4th quarter. Wells Fargo & Company MN now owns 2,384 shares of the company's stock valued at $80,000 after acquiring an additional 278 shares during the period. Concord Wealth Partners boosted its holdings in Tempus AI by 308.0% during 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 period. Farther Finance Advisors LLC boosted its holdings in Tempus AI by 59.9% during the 2nd quarter. Farther Finance Advisors LLC now owns 884 shares of the company's stock valued at $56,000 after acquiring an additional 331 shares during the period. Finally, Bartlett & CO. Wealth Management LLC boosted its holdings in Tempus AI by 100.0% during 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 period. 24.22% of the stock is owned by hedge funds and other 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.