Tempus AI (NASDAQ:TEM) Stock Rating Upgraded by Wall Street Zen

Key Points

• Wall Street Zen upgraded Tempus AI from a “sell” to a “hold,” while the broader analyst view remains mixed with a consensus rating of Hold and an average price target of $68.64.
• Tempus AI shares were down 11.2% to $46.43, well below the stock’s 52-week high of $104.32, highlighting continued volatility despite a market cap of $8.34 billion.
• The company’s latest earnings beat expectations, with quarterly EPS of -$0.13 versus the -$0.21 estimate and revenue of $348.12 million, up 36.1% year over year.

Tempus AI (NASDAQ:TEM - Get Free Report) was upgraded by analysts at Wall Street Zen from a "sell" rating to a "hold" rating in a research note issued to investors on Saturday.

Several other research analysts have also recently weighed in on TEM. Morgan Stanley reduced their price target on shares of Tempus AI from $85.00 to $70.00 and set an "overweight" rating for the company in a report on Tuesday, March 3rd. Mizuho started coverage on shares of Tempus AI in a report on Thursday, February 19th. They issued an "outperform" rating and a $100.00 price target for the company. TD Cowen upped their price target on shares of Tempus AI from $65.00 to $68.00 and gave the company a "buy" rating in a report on Wednesday, May 6th. Jefferies Financial Group initiated coverage on shares of Tempus AI in a report on Monday, April 13th. They set an "underperform" rating and a $35.00 target price for the company. Finally, Stifel Nicolaus set a $60.00 target price on shares of Tempus AI in a report on Wednesday, February 25th. Nine investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Hold" and an average target price of $68.64.

Tempus AI Stock Down 11.2%

Tempus AI stock opened at $46.43 on Friday. The stock has a market capitalization of $8.34 billion, a PE ratio of -26.99 and a beta of 3.62. Tempus AI has a twelve month low of $41.73 and a twelve month high of $104.32. The company has a quick ratio of 3.15, a current ratio of 3.31 and a debt-to-equity ratio of 2.96. The company has a 50 day moving average of $48.89 and a 200-day moving average of $57.48.

Tempus AI (NASDAQ:TEM - Get Free Report) last released its quarterly earnings results on Tuesday, May 5th. The company reported ($0.13) earnings per share for the quarter, beating the consensus estimate of ($0.21) by $0.08. The company had revenue of $348.12 million during the quarter, compared to analysts' expectations of $345.44 million. Tempus AI had a negative net margin of 22.20% and a negative return on equity of 53.83%. The business's quarterly revenue was up 36.1% compared to the same quarter last year. During the same quarter in the prior year, the company earned ($0.24) earnings per share. On average, equities research analysts anticipate that Tempus AI will post -1.35 EPS for the current fiscal year.

Insider Buying and Selling at Tempus AI

In related news, EVP Andrew Polovin sold 8,703 shares of the stock in a transaction on Tuesday, May 19th. The shares were sold at an average price of $44.07, for a total transaction of $383,541.21. Following the completion of the transaction, the executive vice president owned 128,215 shares in the company, valued at approximately $5,650,435.05. This represents a 6.36% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Eric P. Lefkofsky sold 166,250 shares of the stock in a transaction on Wednesday, May 27th. The stock was sold at an average price of $46.70, for a total transaction of $7,763,875.00. Following the transaction, the chief executive officer owned 8,808,533 shares of the company's stock, valued at $411,358,491.10. The trade was a 1.85% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 558,557 shares of company stock valued at $26,611,939 in the last three months. 24.26% of the stock is currently owned by insiders.

Institutional Trading of Tempus AI

Several institutional investors and hedge funds have recently added to or reduced their stakes in TEM. Royal Bank of Canada raised its position in Tempus AI by 201.2% during the first quarter. Royal Bank of Canada now owns 25,988 shares of the company's stock worth $1,253,000 after acquiring an additional 17,359 shares in the last quarter. Rhumbline Advisers bought a new stake in Tempus AI during the first quarter worth $116,000. Prudential Financial Inc. bought a new stake in Tempus AI during the second quarter worth $276,000. Russell Investments Group Ltd. raised its position in Tempus AI by 21.3% during the second quarter. Russell Investments Group Ltd. now owns 6,527 shares of the company's stock worth $415,000 after acquiring an additional 1,146 shares in the last quarter. Finally, Invesco Ltd. raised its position in Tempus AI by 2,926.6% during the second quarter. Invesco Ltd. now owns 211,621 shares of the company's stock worth $13,446,000 after acquiring an additional 204,629 shares in the last quarter. 24.22% of the stock is owned by institutional investors.

Tempus AI Company Profile

Tempus is a technology-driven healthcare company that applies artificial intelligence and machine learning to clinical and molecular data in order to advance precision medicine. Its primary focus lies in oncology, where the company offers comprehensive genomic profiling, digital pathology services and data-driven insights to inform personalized cancer care. By integrating DNA and RNA sequencing with structured clinical information, Tempus enables clinicians and researchers to identify targeted treatment options for patients based on the genetic characteristics of their tumors.

The company's core offering centers on a scalable, cloud-based analytics platform that aggregates vast amounts of molecular and clinical data.

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