Tempus AI (NASDAQ:TEM) Stock Price Up 3.1% Following Strong Earnings

Key Points

• Tempus AI's stock rose 3.1% after the company reported earnings that surpassed expectations, with an EPS of ($0.22), beating the consensus estimate of ($0.23).
• The company's revenue of $314.64 million for the quarter significantly exceeded analyst estimates and represented an 89.5% year-over-year growth.
• Wall Street analysts have varied perspectives on the stock, with a mix of buy and hold ratings, and an average target price of $65.09.

Tempus AI, Inc. (NASDAQ:TEM - Get Free Report) shares shot up 3.1% during trading on Friday following a stronger than expected earnings report. The stock traded as high as $65.73 and last traded at $60.54. 18,705,699 shares traded hands during trading, an increase of 51% from the average session volume of 12,407,803 shares. The stock had previously closed at $58.74.

The company reported ($0.22) EPS for the quarter, topping the consensus estimate of ($0.23) by $0.01. The company had revenue of $314.64 million during the quarter, compared to analyst estimates of $296.84 million. Tempus AI had a negative return on equity of 533.21% and a negative net margin of 88.27%. The business's revenue was up 89.5% on a year-over-year basis. During the same quarter last year, the firm earned ($6.86) EPS.

Wall Street Analyst Weigh In

Several brokerages have weighed in on TEM. Piper Sandler reaffirmed a "neutral" rating on shares of Tempus AI in a research report on Friday. Needham & Company LLC restated a "buy" rating and set a $70.00 price target on shares of Tempus AI in a research report on Friday. Morgan Stanley lifted their price objective on shares of Tempus AI from $60.00 to $65.00 and gave the company an "overweight" rating in a research report on Friday, May 9th. Bank of America upped their target price on shares of Tempus AI from $68.00 to $70.00 and gave the stock a "neutral" rating in a research report on Wednesday, June 25th. Finally, Guggenheim lifted their price target on Tempus AI from $65.00 to $75.00 and gave the company a "buy" rating in a report on Monday, June 30th. Six investment analysts have rated the stock with a hold rating and six have given a buy rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $65.09.

Insider Activity

In other Tempus AI news, CEO Eric P. Lefkofsky sold 166,250 shares of the stock in a transaction on Monday, July 28th. The stock was sold at an average price of $62.87, for a total transaction of $10,452,137.50. Following the completion of the transaction, the chief executive officer directly owned 9,274,033 shares of the company's stock, valued at approximately $583,058,454.71. This trade represents a 1.76% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, EVP Erik Phelps sold 51,317 shares of the company's stock in a transaction on 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 sale, the executive vice president owned 97,779 shares of the company's stock, valued at approximately $7,094,844.24. This trade represents a 34.42% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 758,772 shares of company stock valued at $51,005,175 over the last 90 days. Corporate insiders own 27.60% of the company's stock.

Institutional Trading of Tempus AI

Hedge funds and other institutional investors have recently made changes to their positions in the business. Operose Advisors LLC purchased a new position in Tempus AI in the 4th quarter worth about $25,000. Concord Wealth Partners boosted its holdings in shares of Tempus AI by 308.0% in the second quarter. Concord Wealth Partners now owns 408 shares of the company's stock worth $26,000 after buying an additional 308 shares during the period. Allworth Financial LP increased 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 worth $29,000 after acquiring an additional 450 shares in the last quarter. Cherry Tree Wealth Management LLC acquired a new stake in shares of Tempus AI during the first quarter valued at approximately $31,000. Finally, SouthState Corp lifted its position in shares of 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 acquiring an additional 489 shares in the last quarter. 24.22% of the stock is currently owned by institutional investors.

Tempus AI Stock Up 5.3%

The company has a debt-to-equity ratio of 2.45, a quick ratio of 1.56 and a current ratio of 1.71. The stock has a market cap of $10.71 billion, a price-to-earnings ratio of -7.93 and a beta of 4.98. The business's 50 day moving average is $62.34 and its 200 day moving average is $57.91.

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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