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

Tempus AI, Inc. (NASDAQ:TEM - Get Free Report)'s share price gapped down before the market opened on Tuesday . The stock had previously closed at $63.47, but opened at $62.20. Tempus AI shares last traded at $61.10, with a volume of 5,003,975 shares trading hands.

Analysts Set New Price Targets

A number of brokerages recently issued reports on TEM. Piper Sandler boosted their price target on Tempus AI from $55.00 to $70.00 and gave the company a "neutral" rating in a report on Thursday, May 15th. Wolfe Research cut Tempus AI from a "strong-buy" rating to a "hold" rating in a report on Wednesday, February 26th. William Blair reissued a "market perform" rating on shares of Tempus AI in a research report on Tuesday, February 25th. Guggenheim restated a "buy" rating on shares of Tempus AI in a report on Tuesday, February 25th. Finally, 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 objective for the company. Six equities research analysts have rated the stock with a hold rating and seven have given a buy rating to the company's stock. Based on data from MarketBeat, Tempus AI currently has a consensus rating of "Moderate Buy" and an average price target of $63.42.

Tempus AI Trading Up 1.3%

The firm has a market capitalization of $10.87 billion and a PE ratio of -8.05. The company has a quick ratio of 2.55, a current ratio of 2.69 and a debt-to-equity ratio of 8.17. The company's 50-day simple moving average is $52.78 and its 200 day simple moving average is $51.98.

Tempus AI (NASDAQ:TEM - Get Free Report) last posted its quarterly earnings data on Tuesday, May 6th. The company reported ($0.24) EPS for the quarter, topping the consensus estimate of ($0.27) by $0.03. The firm had revenue of $255.74 million for the quarter, compared to the consensus estimate of $248.13 million. The company's revenue was up 75.4% on a year-over-year basis. As a group, sell-side analysts expect that Tempus AI, Inc. will post -6.15 EPS for the current year.

Insider Transactions at Tempus AI

In related news, 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 value 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. This trade represents a 10.16% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director David R. Epstein sold 990 shares of the business's stock in a transaction that occurred on Monday, March 17th. The stock was sold at an average price of $46.83, for a total transaction of $46,361.70. Following the sale, the director now directly owns 26,284 shares in the company, valued at approximately $1,230,879.72. This represents a 3.63% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 139,888 shares of company stock valued at $7,938,111. Corporate insiders own 27.60% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Victory Capital Management Inc. acquired a new position in shares of Tempus AI in the 4th quarter valued at $216,000. Wells Fargo & Company MN grew its stake 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 purchasing an additional 278 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. acquired a new position in shares of Tempus AI in the fourth quarter valued at about $178,000. abrdn plc acquired a new position in shares of Tempus AI in the fourth quarter valued at about $2,784,000. Finally, ProShare Advisors LLC purchased a new position in shares of Tempus AI in the fourth quarter worth about $244,000. Hedge funds and other institutional investors own 24.22% of the company's stock.

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.