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

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 trading hands.

Analysts Set New Price Targets

A number of analysts have commented on the stock. JPMorgan Chase & Co. lowered shares of Tempus AI from an "overweight" rating to a "neutral" rating and lifted their target price for the stock from $50.00 to $55.00 in a report on Tuesday, February 25th. TD Cowen reiterated a "buy" rating and issued a $74.00 price objective (up previously from $58.00) on shares of Tempus AI in a report on Wednesday, February 5th. William Blair reissued a "market perform" rating on shares of Tempus AI in a research note on Tuesday, February 25th. Wolfe Research cut Tempus AI from a "strong-buy" rating to a "hold" rating in a report on Wednesday, February 26th. Finally, Piper Sandler upped their price target on Tempus AI from $55.00 to $70.00 and gave the company a "neutral" rating in a research note on Thursday, May 15th. Six equities research analysts have rated the stock with a hold rating and seven have given a buy rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $63.42.

Tempus AI Price Performance

The company has a market capitalization of $9.37 billion and a P/E ratio of -6.98. The business's 50-day moving average is $52.15 and its two-hundred day moving average is $51.99. The company has a quick ratio of 2.55, a current ratio of 2.69 and a debt-to-equity ratio of 8.17.

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 the consensus estimate of ($0.27) by $0.03. The company had revenue of $255.74 million for the quarter, compared to analysts' expectations of $248.13 million. The business's quarterly revenue was up 75.4% on a year-over-year basis. As a group, analysts predict that Tempus AI, Inc. will post -6.15 earnings per share for the current year.

Insider Activity at Tempus AI

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

Institutional Trading of Tempus AI

Institutional investors have recently made changes to their positions in the stock. Operose Advisors LLC purchased a new position in shares of Tempus AI in the fourth quarter worth $25,000. Cherry Tree Wealth Management LLC purchased a new position in shares of Tempus AI during the first quarter valued at approximately $31,000. University of Texas Texas AM Investment Management Co. bought a new stake in Tempus AI in the first quarter valued at $33,000. Farther Finance Advisors LLC bought a new stake in shares of Tempus AI during the 4th quarter valued at about $34,000. Finally, Prestige Wealth Management Group LLC lifted its holdings in Tempus AI by 910.4% in the fourth quarter. Prestige Wealth Management Group LLC now owns 1,071 shares of the company's stock worth $36,000 after buying an additional 965 shares during the period. Hedge funds and other 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.