Tempus AI (NASDAQ:TEM) Trading 3% Higher - Here's Why

Key Points

• Tempus AI's stock price increased by 3% during mid-day trading, with a closing price of $75.96 after hitting $76.78 earlier in the day.
• Recent analyst actions include Guggenheim raising its target price to $75.00 with a "buy" rating, contributing to an average "Moderate Buy" rating from analysts.
• The company reported a quarterly revenue of $314.64 million, exceeding expectations and representing a 89.5% increase year-over-year, although it posted a negative return on equity of 122.86%.

Tempus AI, Inc. (NASDAQ:TEM - Get Free Report)'s stock price traded up 3% during mid-day trading on Monday . The company traded as high as $76.78 and last traded at $75.96. 6,477,776 shares changed hands during mid-day trading, a decline of 48% from the average session volume of 12,503,579 shares. The stock had previously closed at $73.78.

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on the company. Guggenheim upped their target price on Tempus AI from $65.00 to $75.00 and gave the stock a "buy" rating in a research note on Monday, June 30th. BTIG Research began coverage on Tempus AI in a research report on Friday, August 8th. They set a "buy" rating and a $60.00 price target for the company. Bank of America boosted their price target on Tempus AI from $68.00 to $70.00 and gave the stock a "neutral" rating in a research report on Wednesday, June 25th. Needham & Company LLC reiterated a "buy" rating and set a $70.00 price target on shares of Tempus AI in a research report on Friday, August 8th. Finally, Piper Sandler reiterated a "neutral" rating on shares of Tempus AI in a research report on Friday, August 8th. Six investment analysts have rated the stock with a hold rating and six have given a buy rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $65.36.

Tempus AI Stock Up 6.1%

The business has a 50 day moving average of $63.13 and a 200-day moving average of $58.64. The stock has a market cap of $13.60 billion, a PE ratio of -65.75 and a beta of 4.98. The company has a current ratio of 1.54, a quick ratio of 1.43 and a debt-to-equity ratio of 2.58.

Tempus AI (NASDAQ:TEM - Get Free Report) last posted its quarterly earnings results on Friday, August 8th. The company reported ($0.22) EPS for the quarter, beating the consensus estimate of ($0.23) by $0.01. The business had revenue of $314.64 million during the quarter, compared to analysts' expectations of $296.84 million. Tempus AI had a negative return on equity of 122.86% and a negative net margin of 20.98%. The company's quarterly revenue was up 89.5% compared to the same quarter last year. During the same period last year, the firm earned ($6.86) EPS. Equities research analysts predict that Tempus AI, Inc. will post -6.15 EPS for the current fiscal year.

Insider Buying and Selling

In other news, CEO Eric P. Lefkofsky sold 250,000 shares of Tempus AI stock in a transaction on Tuesday, June 17th. The stock was sold at an average price of $70.07, for a total value of $17,517,500.00. Following the completion of the sale, the chief executive officer owned 9,357,283 shares of the company's stock, valued at $655,664,819.81. The trade was a 2.60% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO James William Rogers sold 23,121 shares of the business's stock in a transaction dated Tuesday, May 20th. The shares were sold at an average price of $63.27, for a total value of $1,462,865.67. Following the sale, the chief financial officer directly owned 146,001 shares of the company's stock, valued at approximately $9,237,483.27. This trade represents a 13.67% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 802,772 shares of company stock valued at $54,080,775. Company insiders own 27.60% of the company's stock.

Institutional Investors Weigh In On Tempus AI

Several institutional investors and hedge funds have recently modified their holdings of TEM. Vanguard Group Inc. raised its stake 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 valued at $289,204,000 after buying an additional 5,900,668 shares in the last quarter. ARK Investment Management LLC increased its position in Tempus AI by 35.9% in the 1st quarter. ARK Investment Management LLC now owns 7,501,399 shares of the company's stock valued at $361,867,000 after acquiring an additional 1,981,755 shares during the period. Nikko Asset Management Americas Inc. increased its position 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 valued at $205,401,000 after purchasing an additional 1,021,460 shares during the period. Sumitomo Mitsui Trust Group Inc. increased its position in shares of Tempus AI by 31.4% during 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 during the period. Finally, AQR Capital Management LLC acquired a new position in shares of Tempus AI in the 2nd quarter worth $54,020,000. Hedge funds and other institutional investors own 24.22% of the company's stock.

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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