Tempus AI (NASDAQ:TEM) Stock Price Up 1.4% - Still a Buy?

Key Points

• Tempus AI's stock (NASDAQ:TEM) increased by 1.4%, closing at $74.27 with a significant decline in trading volume of 84% from its average.
• Analysts have mixed ratings on Tempus AI, with six analysts giving a "Buy" rating and a consensus price target of $67.64.
• Recent insider trading saw CFO James William Rogers and EVP Erik Phelps sell shares, indicating a 5.16% and 34.42% decrease in their holdings respectively.

Tempus AI, Inc. (NASDAQ:TEM - Get Free Report) was up 1.4% on Thursday . The company traded as high as $74.51 and last traded at $74.27. Approximately 2,026,995 shares traded hands during trading, a decline of 84% from the average daily volume of 12,486,873 shares. The stock had previously closed at $73.23.

Analyst Upgrades and Downgrades

Several equities research analysts have commented on the company. Piper Sandler reiterated a "neutral" rating on shares of Tempus AI in a research note on Friday, August 8th. Morgan Stanley boosted their price target on Tempus AI from $65.00 to $68.00 and gave the stock an "overweight" rating in a research report on Tuesday, August 12th. Bank of America lifted their price objective on Tempus AI from $68.00 to $70.00 and gave the stock a "neutral" rating in a research report on Wednesday, June 25th. BTIG Research upped 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, Needham & Company LLC reissued a "buy" rating and set a $70.00 price objective on shares of Tempus AI in a research report on Friday, August 8th. Six investment analysts have rated the stock with a Buy rating and six have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $67.64.

Tempus AI Trading Up 2.1%

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 company has a market cap of $12.99 billion, a price-to-earnings ratio of -62.82 and a beta of 4.98. The business's fifty day simple moving average is $64.06 and its two-hundred day simple moving average is $59.37.

Tempus AI (NASDAQ:TEM - Get Free Report) last announced its earnings results on Friday, August 8th. The company reported ($0.22) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.23) by $0.01. The business had revenue of $314.64 million for the quarter, compared to analyst estimates 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 for the quarter was up 89.5% compared to the same quarter last year. During the same period last year, the firm posted ($6.86) earnings per share. Tempus AI has set its FY 2025 guidance at EPS. On average, equities analysts predict that Tempus AI, Inc. will post -6.15 EPS for the current year.

Insider Activity

In other Tempus AI news, CFO James William Rogers sold 7,528 shares of the firm's stock in a transaction dated Tuesday, August 19th. The shares were sold at an average price of $74.65, for a total transaction of $561,965.20. Following the completion of the transaction, the chief financial officer directly owned 138,473 shares in the company, valued at approximately $10,337,009.45. This trade represents a 5.16% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, EVP Erik Phelps sold 51,317 shares of the company's stock in a transaction dated Monday, June 16th. The shares were sold at an average price of $72.56, for a total transaction of $3,723,561.52. Following the completion of the sale, the executive vice president directly owned 97,779 shares in the company, valued at $7,094,844.24. This trade represents a 34.42% decrease in their position. 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 90 days. Insiders own 26.27% of the company's stock.

Hedge Funds Weigh In On Tempus AI

Institutional investors have recently made changes to their positions in the stock. ARK Investment Management LLC boosted its holdings in shares of Tempus AI by 35.9% during the first quarter. ARK Investment Management LLC now owns 7,501,399 shares of the company's stock worth $361,867,000 after purchasing an additional 1,981,755 shares during the last quarter. Vanguard Group Inc. increased its position in Tempus AI by 6,247.5% during the first quarter. Vanguard Group Inc. now owns 5,995,117 shares of the company's stock worth $289,204,000 after purchasing an additional 5,900,668 shares during the last quarter. Nikko Asset Management Americas Inc. raised its position in shares of Tempus AI by 31.5% in the 1st quarter. Nikko Asset Management Americas Inc. now owns 4,260,553 shares of the company's stock worth $205,401,000 after buying an additional 1,021,460 shares during the period. Sumitomo Mitsui Trust Group Inc. lifted its stake in shares of Tempus AI by 31.4% in the 1st quarter. Sumitomo Mitsui Trust Group Inc. now owns 4,255,477 shares of the company's stock valued at $205,284,000 after purchasing an additional 1,016,384 shares in the last quarter. Finally, Frontier Capital Management Co. LLC grew its holdings in shares of Tempus AI by 236.2% during the 4th quarter. Frontier Capital Management Co. LLC now owns 943,718 shares of the company's stock worth $31,860,000 after purchasing an additional 663,018 shares during the period. 24.22% of the stock is owned by institutional investors and hedge funds.

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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