Tempus AI (NASDAQ:TEM) Shares Gap Down - Time to Sell?

Key Points

• Tempus AI shares gapped down on Monday, opening below the prior close of $52.47 and last trading around $47.81 after heavy volume.
• Analyst sentiment is mixed but leans cautious: the stock has a consensus “Hold” rating with an average target price of $68.92, though some firms still rate it a buy while others have issued sell/underperform calls.
• Tempus AI’s latest quarter showed better-than-expected revenue and EPS, but the company remains unprofitable, with negative margins and insiders recently selling shares.

Tempus AI, Inc. (NASDAQ:TEM - Get Free Report) shares gapped down prior to trading on Monday . The stock had previously closed at $52.47, but opened at $49.78. Tempus AI shares last traded at $47.8080, with a volume of 2,257,086 shares traded.

Wall Street Analyst Weigh In

TEM has been the topic of a number of recent research reports. BTIG Research restated a "buy" rating and set a $80.00 price objective on shares of Tempus AI in a research report on Monday, June 1st. Jefferies Financial Group initiated coverage on Tempus AI in a report on Monday, April 13th. They issued an "underperform" rating and a $35.00 target price for the company. TD Cowen reissued a "buy" rating on shares of Tempus AI in a research report on Wednesday. Wall Street Zen lowered Tempus AI from a "hold" rating to a "sell" rating in a report on Saturday, July 4th. Finally, Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Tempus AI in a research note on Wednesday, June 17th. Nine analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and an average target price of $68.92.

Tempus AI Price Performance

The company has a debt-to-equity ratio of 2.96, a current ratio of 3.31 and a quick ratio of 3.15. The stock has a market capitalization of $8.57 billion, a P/E ratio of -27.78 and a beta of 3.46. The firm has a fifty day moving average of $51.60 and a two-hundred day moving average of $54.00.

Tempus AI (NASDAQ:TEM - Get Free Report) last released its quarterly earnings results on Tuesday, May 5th. The company reported ($0.13) EPS for the quarter, topping the consensus estimate of ($0.21) by $0.08. The firm had revenue of $348.12 million during the quarter, compared to analyst estimates of $345.44 million. Tempus AI had a negative return on equity of 53.83% and a negative net margin of 22.20%.The business's revenue for the quarter was up 36.1% compared to the same quarter last year. During the same period in the previous year, the company posted ($0.24) EPS. On average, analysts predict that Tempus AI, Inc. will post -1.35 EPS for the current year.

Insider Activity

In related news, CEO Ryan Fukushima sold 33,284 shares of the stock in a transaction that occurred on Wednesday, July 8th. The shares were sold at an average price of $57.39, for a total transaction of $1,910,168.76. Following the completion of the sale, the chief executive officer owned 167,763 shares of the company's stock, valued at $9,627,918.57. This represents a 16.56% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO James William Rogers sold 11,529 shares of the firm's stock in a transaction that occurred on Thursday, June 25th. The shares were sold at an average price of $55.00, for a total transaction of $634,095.00. Following the completion of the sale, the chief financial officer owned 114,866 shares of the company's stock, valued at approximately $6,317,630. This trade represents a 9.12% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 616,043 shares of company stock worth $31,748,593 in the last quarter. 24.26% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Tempus AI

Large investors have recently made changes to their positions in the business. Royal Bank of Canada boosted its position in shares of Tempus AI by 201.2% in the 1st quarter. Royal Bank of Canada now owns 25,988 shares of the company's stock worth $1,253,000 after purchasing an additional 17,359 shares in the last quarter. Rhumbline Advisers acquired a new position in Tempus AI during the 1st quarter valued at about $116,000. Prudential Financial Inc. acquired a new position in Tempus AI during the 2nd quarter valued at about $276,000. Russell Investments Group Ltd. raised its stake in Tempus AI by 21.3% in the second quarter. Russell Investments Group Ltd. now owns 6,527 shares of the company's stock valued at $415,000 after buying an additional 1,146 shares during the last quarter. Finally, Invesco Ltd. raised its stake in Tempus AI by 2,926.6% in the second quarter. Invesco Ltd. now owns 211,621 shares of the company's stock valued at $13,446,000 after buying an additional 204,629 shares during the last quarter. 24.22% of the stock is owned by institutional investors and hedge funds.

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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