Tempus AI (NASDAQ:TEM) Trading Down 4.5% - Here's Why

Key Points

• Tempus AI's stock price fell by 4.5%, with trading volumes down 61% compared to average levels, closing at $74.94 after hitting a low of $74.71.
• Research analysts maintain a consensus rating of "Moderate Buy" for Tempus AI, with an average price target of $65.36, despite mixed ratings from various firms.
• In its latest earnings report, Tempus AI posted a revenue of $314.64 million, exceeding expectations, and reported a loss per share of ($0.22), slightly better than the consensus estimate.

Tempus AI, Inc. (NASDAQ:TEM - Get Free Report)'s share price dropped 4.5% during mid-day trading on Tuesday . The stock traded as low as $74.71 and last traded at $74.94. Approximately 4,901,749 shares changed hands during trading, a decline of 61% from the average daily volume of 12,515,944 shares. The stock had previously closed at $78.45.

Analyst Ratings Changes

A number of research analysts have weighed in on the stock. Bank of America lifted their price objective on shares of Tempus AI from $68.00 to $70.00 and gave the company a "neutral" rating in a report on Wednesday, June 25th. Needham & Company LLC reaffirmed a "buy" rating and set a $70.00 price objective on shares of Tempus AI in a research note on Friday, August 8th. BTIG Research initiated coverage on shares of Tempus AI in a research note on Friday, August 8th. They set a "buy" rating and a $60.00 price objective for the company. Piper Sandler reaffirmed a "neutral" rating on shares of Tempus AI in a research note on Friday, August 8th. Finally, Morgan Stanley boosted their target price on shares of Tempus AI from $65.00 to $68.00 and gave the company an "overweight" rating in a report on Tuesday, August 12th. Six research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company's stock. Based on data from MarketBeat, Tempus AI currently has an average rating of "Moderate Buy" and an average price target of $65.36.

Tempus AI Stock Performance

The company has a debt-to-equity ratio of 2.58, a quick ratio of 1.43 and a current ratio of 1.54. The stock's 50-day simple moving average is $63.36 and its 200 day simple moving average is $58.78. The company has a market capitalization of $12.92 billion, a PE ratio of -63.12 and a beta of 4.98.

Tempus AI (NASDAQ:TEM - Get Free Report) last released its earnings results on Friday, August 8th. The company reported ($0.22) EPS for the quarter, topping the consensus estimate of ($0.23) by $0.01. Tempus AI had a negative net margin of 20.98% and a negative return on equity of 122.86%. The company had revenue of $314.64 million during the quarter, compared to analysts' expectations of $296.84 million. During the same quarter last year, the business earned ($6.86) EPS. The business's revenue was up 89.5% on a year-over-year basis. Tempus AI has set its FY 2025 guidance at EPS. As a group, research analysts expect that Tempus AI, Inc. will post -6.15 earnings per share for the current fiscal year.

Insider Transactions at Tempus AI

In other Tempus AI news, COO Ryan Fukushima sold 5,000 shares of the business's stock in a transaction on Monday, July 7th. The shares were sold at an average price of $60.00, for a total transaction of $300,000.00. Following the completion of the sale, the chief operating officer owned 145,000 shares in the company, valued at $8,700,000. The trade was a 3.33% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, EVP Erik Phelps sold 51,317 shares of the company's stock in a transaction dated Monday, June 16th. The shares were sold at an average price of $72.56, for a total transaction of $3,723,561.52. Following the completion of the sale, the executive vice president directly owned 97,779 shares of the company's stock, valued at $7,094,844.24. The trade was a 34.42% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 723,039 shares of company stock valued at $49,035,482 over the last ninety days. 27.60% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Tempus AI

Institutional investors and hedge funds have recently made changes to their positions in the company. Pitcairn Co. acquired a new position in Tempus AI during the 2nd quarter worth about $317,000. Tyler Stone Wealth Management raised its holdings in Tempus AI by 10.0% during the 2nd quarter. Tyler Stone Wealth Management now owns 8,800 shares of the company's stock worth $559,000 after purchasing an additional 800 shares during the last quarter. Nomura Holdings Inc. increased its stake in shares of Tempus AI by 116.6% in the 2nd quarter. Nomura Holdings Inc. now owns 45,860 shares of the company's stock valued at $2,914,000 after acquiring an additional 24,689 shares during the last quarter. FORA Capital LLC bought a new stake in shares of Tempus AI in the 2nd quarter valued at about $1,434,000. Finally, Tower Research Capital LLC TRC increased its stake in shares of Tempus AI by 15.7% in the 2nd quarter. Tower Research Capital LLC TRC now owns 22,670 shares of the company's stock valued at $1,440,000 after acquiring an additional 3,072 shares during the last quarter. Institutional investors and hedge funds 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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