Tempus AI (NASDAQ:TEM) Stock Price Down 4% - Time to Sell?

Key Points

• Tempus AI's stock price fell by 4%, trading as low as $73.50, with a significant decline in trading volume, down 79% from its average session.
• Despite the recent decline, analysts maintain a generally positive outlook with a consensus target price of $67.64 and a rating of "Moderate Buy."
• Recent insider trades included a CFO selling over 7,500 shares and the CEO selling 250,000 shares, indicating shifts in insider ownership.

Tempus AI, Inc. (NASDAQ:TEM - Get Free Report) shares fell 4% during mid-day trading on Wednesday . The company traded as low as $73.50 and last traded at $73.24. 2,655,052 shares changed hands during mid-day trading, a decline of 79% from the average session volume of 12,526,959 shares. The stock had previously closed at $76.30.

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on TEM. Needham & Company LLC restated a "buy" rating and issued a $70.00 price target on shares of Tempus AI in a research report on Friday, August 8th. Morgan Stanley lifted their target price on Tempus AI from $65.00 to $68.00 and gave the stock an "overweight" rating in a research report on Tuesday, August 12th. Guggenheim lifted their target price on 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 raised their price target on Tempus AI from $75.00 to $85.00 and gave the company a "buy" rating in a research note on Wednesday, August 20th. Finally, Piper Sandler restated a "neutral" rating on shares of Tempus AI in a research note on Friday, August 8th. Six investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $67.64.

Tempus AI Price Performance

The firm has a market cap of $12.76 billion, a PE ratio of -61.51 and a beta of 4.98. The company has a quick ratio of 1.43, a current ratio of 1.54 and a debt-to-equity ratio of 2.58. The stock has a 50 day moving average price of $63.98 and a two-hundred day moving average price of $59.27.

Tempus AI (NASDAQ:TEM - Get Free Report) last released its earnings results on Friday, August 8th. The company reported ($0.22) EPS for the quarter, topping analysts' consensus estimates 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 during the quarter, compared to the consensus estimate of $296.84 million. During the same quarter in the previous year, the company posted ($6.86) earnings per share. The company's revenue was up 89.5% compared to the same quarter last year. Tempus AI has set its FY 2025 guidance at EPS. As a group, equities analysts expect that Tempus AI, Inc. will post -6.15 earnings per share for the current year.

Insider Buying and Selling

In related news, CFO James William Rogers sold 7,528 shares of the business's stock in a transaction that occurred on Tuesday, August 19th. The stock was sold at an average price of $74.65, for a total transaction of $561,965.20. Following the completion of the sale, the chief financial officer directly owned 138,473 shares in the company, valued at approximately $10,337,009.45. The trade was a 5.16% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Eric P. Lefkofsky sold 250,000 shares of the business's stock in a transaction that occurred on Tuesday, June 17th. The stock was sold at an average price of $70.07, for a total value of $17,517,500.00. Following the sale, the chief executive officer owned 9,357,283 shares of the company's stock, valued at $655,664,819.81. The trade was a 2.60% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 776,451 shares of company stock valued at $53,022,688 in the last three months. 26.27% of the stock is currently owned by company insiders.

Institutional Trading of Tempus AI

Several large investors have recently made changes to their positions in TEM. Concord Wealth Partners grew its holdings in Tempus AI by 308.0% in the 2nd quarter. Concord Wealth Partners now owns 408 shares of the company's stock valued at $26,000 after buying an additional 308 shares in the last quarter. Allworth Financial LP grew its holdings in Tempus AI by 5,000.0% in the 2nd 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. SouthState Corp grew its holdings in Tempus AI by 3,761.5% in the 2nd 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. Cherry Tree Wealth Management LLC purchased a new stake in Tempus AI in the 1st quarter valued at $31,000. Finally, University of Texas Texas AM Investment Management Co. purchased a new stake in Tempus AI in the 1st quarter valued at $33,000. 24.22% of the stock is currently owned by hedge funds and other institutional investors.

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.

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