Tempus AI (NASDAQ:TEM) Trading 7.5% Higher - Still a Buy?

Key Points

• Tempus AI shares rose 7.5% to about $55.94 in Monday trading, though volume was roughly 60% below the average daily level.
• Analyst sentiment is mixed: nine analysts rate the stock a Buy, six a Hold and two a Sell, producing an overall “Hold” rating and an average price target of $64.92.
• The company beat quarterly expectations, reporting a $0.04 adjusted loss per share versus the expected $0.14 loss and revenue of $382.5 million, up 21.6% year over year. However, Tempus remains unprofitable, while insiders sold about $34.9 million of stock during the last quarter.

Shares of Tempus AI, Inc. (NASDAQ:TEM - Get Free Report) were up 7.5% on Monday . The stock traded as high as $55.70 and last traded at $55.9350. Approximately 2,339,854 shares traded hands during mid-day trading, a decline of 60% from the average daily volume of 5,814,483 shares. The stock had previously closed at $52.05.

Analysts Set New Price Targets

A number of research analysts have commented on TEM shares. Freedom Capital upgraded Tempus AI to a "hold" rating in a research report on Tuesday, June 30th. Lake Street Capital lowered Tempus AI to a "hold" rating in a research note on Monday, July 20th. Needham & Company LLC reiterated a "buy" rating and issued a $75.00 price objective on shares of Tempus AI in a research report on Friday, July 31st. Wolfe Research started coverage on Tempus AI in a report on Tuesday, June 2nd. They set a "peer perform" rating for the company. Finally, Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Tempus AI in a research note on Wednesday, June 17th. Nine investment analysts have rated the stock with a Buy rating, six have given a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Hold" and an average price target of $64.92.

Tempus AI Stock Performance

The stock has a market cap of $10.01 billion, a P/E ratio of -38.49 and a beta of 3.58. The stock has a fifty day simple moving average of $51.33 and a 200-day simple moving average of $51.83. The company has a quick ratio of 3.16, a current ratio of 3.30 and a debt-to-equity ratio of 3.06.

Tempus AI (NASDAQ:TEM - Get Free Report) last announced its quarterly earnings results on Thursday, July 30th. The company reported ($0.04) EPS for the quarter, beating analysts' consensus estimates of ($0.14) by $0.10. Tempus AI had a negative return on equity of 50.28% and a negative net margin of 17.77%.The company had revenue of $382.49 million during the quarter, compared to analysts' expectations of $379.69 million. During the same period in the prior year, the business posted ($0.22) EPS. Tempus AI's revenue was up 21.6% on a year-over-year basis. Equities analysts expect that Tempus AI, Inc. will post -1.38 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, CFO James William Rogers sold 11,529 shares of Tempus AI stock in a transaction on Thursday, June 25th. The shares were sold at an average price of $55.00, for a total transaction of $634,095.00. Following the transaction, the chief financial officer directly owned 114,866 shares of the company's stock, valued at $6,317,630. This trade represents a 9.12% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Eric P. Lefkofsky sold 250,000 shares of the business's stock in a transaction on Tuesday, July 28th. The shares were sold at an average price of $42.06, for a total transaction of $10,515,000.00. Following the completion of the transaction, the chief executive officer directly owned 200,000 shares of the company's stock, valued at $8,412,000. This trade represents a 55.56% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 723,981 shares of company stock valued at $34,879,442. 24.26% of the stock is owned by company insiders.

Institutional Investors Weigh In On Tempus AI

Several large investors have recently modified their holdings of the business. Vanguard Group Inc. raised its holdings in shares of Tempus AI by 8.7% during the fourth quarter. Vanguard Group Inc. now owns 10,258,621 shares of the company's stock worth $605,772,000 after acquiring an additional 817,014 shares during the period. ARK Investment Management LLC raised its stake in shares of Tempus AI by 5.3% in the 4th quarter. ARK Investment Management LLC now owns 7,557,583 shares of the company's stock valued at $446,275,000 after purchasing an additional 381,816 shares during the period. GC Wealth Management RIA LLC bought a new stake in shares of Tempus AI in the fourth quarter valued at about $399,267,000. Sumitomo Mitsui Trust Group Inc. lifted its holdings in shares of Tempus AI by 23.4% in the first quarter. Sumitomo Mitsui Trust Group Inc. now owns 4,326,313 shares of the company's stock valued at $195,636,000 after purchasing an additional 821,490 shares in the last quarter. Finally, Amova Asset Management Americas Inc. boosted its position in shares of Tempus AI by 23.4% during the first quarter. Amova Asset Management Americas Inc. now owns 4,326,313 shares of the company's stock worth $195,549,000 after buying an additional 821,490 shares during the period. 24.22% of the stock is currently 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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