Tempus AI (NASDAQ:TEM) Stock Price Up 1.3% - Should You Buy?

Key Points

• Tempus AI's stock increased by 1.3% during trading on Tuesday, with a last traded price of $58.25 and significant trading volume decline of 85% from the average.
• Several analysts upgraded their ratings for Tempus AI, with Guggenheim increasing their price target from $65 to $75 and a consensus rating of "Moderate Buy" with an average target of $65.09.
• The company reported a revenue of $255.74 million for the last quarter, surpassing expectations and representing a 75.4% increase year-over-year.

Tempus AI, Inc. (NASDAQ:TEM - Get Free Report) shares rose 1.3% during trading on Tuesday . The stock traded as high as $58.92 and last traded at $58.25. Approximately 1,898,665 shares traded hands during mid-day trading, a decline of 85% from the average daily volume of 12,420,070 shares. The stock had previously closed at $57.52.

Analyst Upgrades and Downgrades

Several research analysts recently weighed in on TEM shares. Guggenheim boosted their price objective 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. Needham & Company LLC restated a "buy" rating and issued a $70.00 price objective on shares of Tempus AI in a research report on Wednesday, May 7th. Morgan Stanley boosted their price objective on shares of Tempus AI from $60.00 to $65.00 and gave the stock an "overweight" rating in a research report on Friday, May 9th. Piper Sandler boosted their price objective on shares of Tempus AI from $55.00 to $70.00 and gave the stock a "neutral" rating in a research report on Thursday, May 15th. Finally, BTIG Research started coverage on shares of Tempus AI in a research report 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 six have issued a buy rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $65.09.

Tempus AI Stock Up 1.1%

The firm's 50-day simple moving average is $62.37 and its 200 day simple moving average is $57.76. The company has a market cap of $10.07 billion, a P/E ratio of -7.45 and a beta of 4.99. The company has a debt-to-equity ratio of 2.45, a quick ratio of 1.56 and a current ratio of 1.71.

Tempus AI (NASDAQ:TEM - Get Free Report) last issued its earnings results on Tuesday, May 6th. The company reported ($0.24) EPS for the quarter, beating the consensus estimate of ($0.27) by $0.03. Tempus AI had a negative net margin of 88.27% and a negative return on equity of 533.21%. The company had revenue of $255.74 million during the quarter, compared to analysts' expectations of $248.13 million. The business's revenue was up 75.4% compared to the same quarter last year. On average, research analysts forecast that Tempus AI, Inc. will post -6.15 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, COO Ryan Fukushima sold 5,000 shares of the company's stock in a transaction on Monday, July 7th. The shares were sold at an average price of $60.00, for a total value of $300,000.00. Following the completion of the sale, the chief operating officer owned 145,000 shares in the company, valued at $8,700,000. This represents a 3.33% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Theodore Leonsis sold 205,847 shares of the company's stock in a transaction on Wednesday, June 11th. The stock was sold at an average price of $67.66, for a total transaction of $13,927,608.02. Following the completion of the transaction, the director directly owned 15,511 shares of the company's stock, valued at approximately $1,049,474.26. The trade was a 92.99% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 758,772 shares of company stock worth $51,005,175 over the last 90 days. 27.60% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Tempus AI

A number of large investors have recently modified their holdings of the business. Operose Advisors LLC acquired a new stake in Tempus AI in the 4th quarter valued at about $25,000. Concord Wealth Partners raised 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 acquiring an additional 308 shares during the period. Cherry Tree Wealth Management LLC bought a new position in Tempus AI in the 1st quarter valued at about $31,000. University of Texas Texas AM Investment Management Co. bought a new position in Tempus AI in the 1st quarter valued at about $33,000. Finally, Continuum Advisory LLC bought a new position in Tempus AI in the 1st quarter valued at about $39,000. 24.22% of the stock is currently owned by institutional investors and hedge funds.

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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