Tempus AI (NASDAQ:TEM) Stock Price Up 10.1% - Time to Buy?

Key Points

• Tempus AI, Inc. shares surged by 10.1%, closing at $102.36 after opening at a high of $102.49, with a trading volume reflecting a 20% decline from its average.
• Equities analysts have mixed ratings on Tempus AI, with seven giving a Buy rating, six a Hold, and one a Sell, while the average price target stands at $71.83.
• In their latest quarterly earnings, Tempus AI reported a revenue increase of 89.5% year-over-year and exceeded earnings expectations, despite a negative net margin of 20.98%.

Shares of Tempus AI, Inc. (NASDAQ:TEM - Get Free Report) rose 10.1% during trading on Wednesday . The stock traded as high as $102.49 and last traded at $102.36. Approximately 9,596,572 shares changed hands during mid-day trading, a decline of 20% from the average daily volume of 11,970,943 shares. The stock had previously closed at $93.01.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently weighed in on the stock. BTIG Research raised their price objective on shares of Tempus AI from $75.00 to $85.00 and gave the company a "buy" rating in a report on Wednesday, August 20th. Piper Sandler reiterated a "neutral" rating on shares of Tempus AI in a research note on Friday, August 8th. Bank of America lifted their price target on shares of Tempus AI from $68.00 to $70.00 and gave the stock a "neutral" rating in a research note on Wednesday, June 25th. Guggenheim lifted their price target on shares of Tempus AI from $80.00 to $95.00 and gave the stock a "buy" rating in a research note on Friday, September 26th. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of Tempus AI in a research note on Wednesday. Seven equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Hold" and an average price target of $71.83.

Tempus AI Price 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 has a market capitalization of $17.94 billion, a PE ratio of -86.76 and a beta of 4.87. The company's fifty day simple moving average is $76.30 and its two-hundred day simple moving average is $63.89.

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

Insider Activity at Tempus AI

In other news, CEO Eric P. Lefkofsky sold 332,500 shares of the business's stock in a transaction that occurred on Thursday, September 25th. The shares were sold at an average price of $76.56, for a total value of $25,456,200.00. Following the completion of the transaction, the chief executive officer owned 9,141,032 shares of the company's stock, valued at $699,837,409.92. The trade was a 3.51% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, EVP Erik Phelps sold 3,664 shares of Tempus AI 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 $273,517.60. Following the completion of the sale, the executive vice president directly owned 94,115 shares of the company's stock, valued at $7,025,684.75. The trade was a 3.75% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 928,662 shares of company stock worth $67,609,393 over the last three months. Company insiders own 26.27% of the company's stock.

Institutional Trading of Tempus AI

Large investors have recently bought and sold shares of the company. Concord Wealth Partners grew its position in Tempus AI by 308.0% in the second quarter. Concord Wealth Partners now owns 408 shares of the company's stock valued at $26,000 after acquiring an additional 308 shares in the last quarter. GAMMA Investing LLC bought a new position in Tempus AI during the third quarter worth $28,000. Allworth Financial LP lifted its stake in Tempus AI by 5,000.0% during the second quarter. Allworth Financial LP now owns 459 shares of the company's stock worth $29,000 after purchasing an additional 450 shares during the last quarter. Cherry Tree Wealth Management LLC bought a new position in Tempus AI during the first quarter worth $31,000. Finally, SouthState Corp lifted its stake in Tempus AI by 3,761.5% during the second quarter. SouthState Corp now owns 502 shares of the company's stock worth $32,000 after purchasing an additional 489 shares during the last quarter. Institutional investors and hedge funds 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.

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