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

Shares of Tempus AI, Inc. (NASDAQ:TEM - Get Free Report) gapped down prior to trading on Wednesday . The stock had previously closed at $65.87, but opened at $63.99. Tempus AI shares last traded at $56.35, with a volume of 11,619,197 shares.

Wall Street Analyst Weigh In

TEM has been the topic of several recent analyst reports. Guggenheim reaffirmed a "buy" rating on shares of Tempus AI in a research note on Tuesday, February 25th. JPMorgan Chase & Co. downgraded shares of Tempus AI from an "overweight" rating to a "neutral" rating and raised their price target for the stock from $50.00 to $55.00 in a research note on Tuesday, February 25th. BTIG Research initiated coverage on shares of Tempus AI in a research note on Monday, April 21st. They issued a "buy" rating and a $60.00 price target on the stock. Piper Sandler raised their price target on shares of Tempus AI from $55.00 to $70.00 and gave the stock a "neutral" rating in a research note on Thursday, May 15th. Finally, William Blair reaffirmed a "market perform" rating on shares of Tempus AI in a research note on Tuesday, February 25th. Six equities research analysts have rated the stock with a hold rating and seven have assigned a buy rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $63.42.

Tempus AI Trading Up 0.3%

The company has a debt-to-equity ratio of 8.17, a quick ratio of 2.55 and a current ratio of 2.69. The company's fifty day simple moving average is $52.07 and its 200-day simple moving average is $51.90. The company has a market capitalization of $9.40 billion and a P/E ratio of -7.00.

Tempus AI (NASDAQ:TEM - Get Free Report) last released its quarterly earnings results on Tuesday, May 6th. The company reported ($0.24) earnings per share for the quarter, beating analysts' consensus estimates of ($0.27) by $0.03. The firm had revenue of $255.74 million during the quarter, compared to the consensus estimate of $248.13 million. The business's quarterly revenue was up 75.4% on a year-over-year basis. Research analysts predict that Tempus AI, Inc. will post -6.15 earnings per share for the current year.

Insider Activity

In related news, CEO Eric P. Lefkofsky sold 562,345 shares of the stock in a transaction that occurred on Wednesday, March 5th. The shares were sold at an average price of $50.93, for a total value of $28,640,230.85. Following the completion of the transaction, the chief executive officer now directly owns 9,457,283 shares of the company's stock, valued at $481,659,423.19. This trade represents a 5.61% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Wayne A.I. Frederick sold 3,000 shares of the stock in a transaction that occurred on Monday, March 31st. The shares were sold at an average price of $45.54, for a total transaction of $136,620.00. Following the completion of the transaction, the director now directly owns 26,514 shares of the company's stock, valued at $1,207,447.56. The trade was a 10.16% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 723,042 shares of company stock worth $37,642,690. Corporate insiders own 27.60% of the company's stock.

Hedge Funds Weigh In On Tempus AI

Several hedge funds and other institutional investors have recently modified their holdings of TEM. Operose Advisors LLC purchased a new position in shares of Tempus AI in the 4th quarter valued at approximately $25,000. Cherry Tree Wealth Management LLC purchased a new position in shares of Tempus AI in the 1st quarter valued at approximately $31,000. University of Texas Texas AM Investment Management Co. purchased a new position in shares of Tempus AI in the 1st quarter valued at approximately $33,000. Farther Finance Advisors LLC purchased a new position in shares of Tempus AI in the 4th quarter valued at approximately $34,000. Finally, Prestige Wealth Management Group LLC raised its position in shares of Tempus AI by 910.4% in the 4th quarter. Prestige Wealth Management Group LLC now owns 1,071 shares of the company's stock valued at $36,000 after purchasing an additional 965 shares during the last quarter. 24.22% of the stock is owned by hedge funds and other institutional investors.

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.