Tempus AI (NASDAQ:TEM) Stock Price Down 1.8% - Here's Why

Key Points

• Tempus AI's stock (NASDAQ:TEM) fell by 1.8% to $79.05, with a significant drop in trading volume compared to average levels.
• Analysts have mixed ratings for Tempus AI, with six ratings for "buy" and six for "hold," while the consensus target price is at $67.64.
• Institutional investors have recently increased their stakes in Tempus AI, with firms like Vanguard and ARK Investment Management significantly boosting their holdings.

Tempus AI, Inc. (NASDAQ:TEM - Get Free Report)'s stock price dropped 1.8% during mid-day trading on Monday . The company traded as low as $77.66 and last traded at $79.05. Approximately 4,353,281 shares traded hands during mid-day trading, a decline of 65% from the average daily volume of 12,584,122 shares. The stock had previously closed at $80.52.

Analysts Set New Price Targets

TEM has been the subject of a number of recent research reports. Morgan Stanley upped their price objective on shares of Tempus AI from $65.00 to $68.00 and gave the stock an "overweight" rating in a report on Tuesday, August 12th. Bank of America upped their price objective on shares of Tempus AI from $68.00 to $70.00 and gave the company a "neutral" rating in a research report on Wednesday, June 25th. Guggenheim increased their price target on shares of 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 increased their price target on shares of Tempus AI from $75.00 to $85.00 and gave the stock a "buy" rating in a research report on Wednesday, August 20th. Finally, Needham & Company LLC reaffirmed a "buy" rating and set a $70.00 price objective on shares of Tempus AI in a research note on Friday, August 8th. Six analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $67.64.

Tempus AI Stock Performance

The company has a debt-to-equity ratio of 2.58, a quick ratio of 1.43 and a current ratio of 1.54. The stock's 50-day moving average is $64.16 and its 200 day moving average is $59.41. The firm has a market cap of $13.18 billion, a P/E ratio of -63.75 and a beta of 4.98.

Tempus AI (NASDAQ:TEM - Get Free Report) last released its quarterly earnings results on Friday, August 8th. The company reported ($0.22) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.23) by $0.01. Tempus AI had a negative return on equity of 122.86% and a negative net margin of 20.98%.The firm had revenue of $314.64 million for the quarter, compared to the consensus estimate of $296.84 million. During the same quarter last year, the business posted ($6.86) EPS. The company's revenue for the quarter was up 89.5% on a year-over-year basis. Tempus AI has set its FY 2025 guidance at EPS. On average, research analysts predict that Tempus AI, Inc. will post -6.15 earnings per share for the current year.

Insider Buying and Selling

In other news, Director Theodore Leonsis sold 205,847 shares of the firm's stock in a transaction dated Wednesday, June 11th. The stock was sold at an average price of $67.66, for a total value of $13,927,608.02. Following the completion of the transaction, the director owned 15,511 shares in the company, valued at $1,049,474.26. This trade represents a 92.99% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Erik Phelps sold 51,317 shares of the firm's stock in a transaction dated Monday, June 16th. The shares were sold at an average price of $72.56, for a total value of $3,723,561.52. Following the completion of the transaction, the executive vice president owned 97,779 shares of the company's stock, valued at $7,094,844.24. The trade was a 34.42% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 776,451 shares of company stock worth $53,022,688 over the last three months. Company insiders own 26.27% of the company's stock.

Hedge Funds Weigh In On Tempus AI

Several hedge funds have recently modified their holdings of TEM. Concord Wealth Partners grew its holdings in Tempus AI by 308.0% during the second quarter. Concord Wealth Partners now owns 408 shares of the company's stock worth $26,000 after purchasing an additional 308 shares during the period. Allworth Financial LP raised its position in shares of Tempus AI by 5,000.0% in the second quarter. Allworth Financial LP now owns 459 shares of the company's stock valued at $29,000 after buying an additional 450 shares in the last quarter. Cherry Tree Wealth Management LLC acquired a new stake in shares of Tempus AI in the first quarter valued at approximately $31,000. SouthState Corp raised its position in shares of Tempus AI by 3,761.5% in the second quarter. SouthState Corp now owns 502 shares of the company's stock valued at $32,000 after buying an additional 489 shares in the last quarter. Finally, University of Texas Texas AM Investment Management Co. bought a new position in Tempus AI in the first quarter valued at approximately $33,000. 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.