Tempus AI (NASDAQ:TEM) Trading 1.7% Higher - Time to Buy?

Key Points

• Tempus AI, Inc. (NASDAQ:TEM) shares rose 1.7% to $55.85, though trading volume was down significantly at 2,439,113 shares compared to an average of 12,466,762.
• Analysts have set new price targets for Tempus AI, with Bank of America raising their target to $70.00, and Guggenheim even higher at $75.00, reflecting a consensus "Moderate Buy" rating.
• Tempus AI's latest earnings report showed a 75.4% increase in year-over-year revenue, hitting $255.74 million, and an EPS of ($0.24), beating estimates.

Tempus AI, Inc. (NASDAQ:TEM - Get Free Report) shares traded up 1.7% during mid-day trading on Monday . The company traded as high as $55.88 and last traded at $55.85. 2,439,113 shares changed hands during mid-day trading, a decline of 80% from the average session volume of 12,466,762 shares. The stock had previously closed at $54.89.

Analysts Set New Price Targets

Several equities analysts have issued reports on TEM shares. Bank of America lifted their price objective on Tempus AI from $68.00 to $70.00 and gave the company a "neutral" rating in a research report on Wednesday, June 25th. Needham & Company LLC restated a "buy" rating and set a $70.00 target price on shares of Tempus AI in a research report on Wednesday, May 7th. Morgan Stanley boosted their target price on Tempus AI from $60.00 to $65.00 and gave the stock an "overweight" rating in a research report on Friday, May 9th. Guggenheim boosted their target price on Tempus AI from $65.00 to $75.00 and gave the stock a "buy" rating in a research report on Monday, June 30th. Finally, BTIG Research started coverage on Tempus AI in a research report on Monday, April 21st. They set a "buy" rating and a $60.00 target price for the company. Six analysts have rated the stock with a hold rating and six have given a buy rating to the stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $65.09.

Tempus AI Price Performance

The business has a 50 day moving average price of $62.47 and a two-hundred day moving average price of $57.61. The stock has a market cap of $9.96 billion, a PE ratio of -7.37 and a beta of 4.98. 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 posted its quarterly earnings data 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 return on equity of 533.21% and a negative net margin of 88.27%. The business had revenue of $255.74 million for the quarter, compared to the consensus estimate of $248.13 million. The company's revenue was up 75.4% on a year-over-year basis. Research analysts expect that Tempus AI, Inc. will post -6.15 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, COO Ryan Fukushima sold 20,000 shares of the company's stock in a transaction on Tuesday, May 6th. The shares were sold at an average price of $52.36, for a total value of $1,047,200.00. Following the completion of the transaction, the chief operating officer directly owned 884,460 shares in the company, valued at approximately $46,310,325.60. The trade was a 2.21% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO James William Rogers sold 23,121 shares of the company's stock in a transaction dated Tuesday, May 20th. The shares were sold at an average price of $63.27, for a total transaction of $1,462,865.67. Following the sale, the chief financial officer owned 146,001 shares of the company's stock, valued at approximately $9,237,483.27. The trade was a 13.67% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 778,772 shares of company stock valued at $52,052,375 in the last three months. 27.60% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Tempus AI

A number of hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc. boosted its stake in shares of Tempus AI by 6,247.5% during the 1st quarter. Vanguard Group Inc. now owns 5,995,117 shares of the company's stock worth $289,204,000 after acquiring an additional 5,900,668 shares during the last quarter. ARK Investment Management LLC boosted its stake in shares of Tempus AI by 35.9% during the 1st quarter. ARK Investment Management LLC now owns 7,501,399 shares of the company's stock worth $361,867,000 after acquiring an additional 1,981,755 shares during the last quarter. JPMorgan Chase & Co. boosted its stake in shares of Tempus AI by 86,947.2% during the 4th quarter. JPMorgan Chase & Co. now owns 1,653,896 shares of the company's stock worth $55,836,000 after acquiring an additional 1,651,996 shares during the last quarter. Norges Bank purchased a new position in shares of Tempus AI during the 4th quarter worth $34,681,000. Finally, Nikko Asset Management Americas Inc. boosted its stake in shares of Tempus AI by 31.5% during the 1st quarter. Nikko Asset Management Americas Inc. now owns 4,260,553 shares of the company's stock worth $205,401,000 after acquiring an additional 1,021,460 shares during the last quarter. 24.22% of the stock is currently owned by hedge funds and other institutional investors.

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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