Tempus AI (NASDAQ:TEM) Trading Up 3.4% - What's Next?

Key Points

• Tempus AI's stock increased by 3.4%, reaching a high of $58.40 during trading, despite a significant decline in average session volume by 79%.
• Multiple analysts have raised their price targets for Tempus AI, with Guggenheim increasing theirs from $65.00 to $75.00, indicating a consensus rating of "Moderate Buy" with an average target price of $65.09.
• In its latest earnings report, Tempus AI reported a revenue increase of 75.4% year-over-year, exceeding analyst expectations with $255.74 million in revenue and an EPS of ($0.24).

Tempus AI, Inc. (NASDAQ:TEM - Get Free Report) traded up 3.4% during trading on Thursday . The stock traded as high as $58.40 and last traded at $57.44. 2,615,406 shares were traded during mid-day trading, a decline of 79% from the average session volume of 12,329,935 shares. The stock had previously closed at $55.53.

Wall Street Analyst Weigh In

TEM has been the subject of several analyst reports. Guggenheim raised their price target on shares of Tempus AI from $65.00 to $75.00 and gave the stock a "buy" rating in a report on Monday, June 30th. Piper Sandler increased their price objective on Tempus AI from $55.00 to $70.00 and gave the stock a "neutral" rating in a report on Thursday, May 15th. Morgan Stanley boosted their target price on Tempus AI from $60.00 to $65.00 and gave the company an "overweight" rating in a research note on Friday, May 9th. BTIG Research assumed coverage on shares of Tempus AI in a research report on Monday, April 21st. They set a "buy" rating and a $60.00 price objective on the stock. Finally, Bank of America raised their target price on shares of Tempus AI from $68.00 to $70.00 and gave the stock a "neutral" rating in a research report on Wednesday, June 25th. Six research analysts have rated the stock with a hold rating and six have issued a buy rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $65.09.

Tempus AI Stock Up 5.8%

The company has a debt-to-equity ratio of 2.45, a current ratio of 1.71 and a quick ratio of 1.56. The stock has a 50 day simple moving average of $62.25 and a 200-day simple moving average of $57.75. The firm has a market cap of $10.17 billion, a PE ratio of -7.53 and a beta of 4.98.

Tempus AI (NASDAQ:TEM - Get Free Report) last announced its quarterly earnings results on Tuesday, May 6th. The company reported ($0.24) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.27) by $0.03. The company had revenue of $255.74 million for the quarter, compared to analysts' expectations of $248.13 million. Tempus AI had a negative net margin of 88.27% and a negative return on equity of 533.21%. The company's revenue was up 75.4% on a year-over-year basis. Sell-side analysts predict that Tempus AI, Inc. will post -6.15 EPS for the current fiscal year.

Insider Activity

In other news, Director Jennifer A. Doudna sold 625 shares of the business's stock in a transaction on Tuesday, July 1st. The stock was sold at an average price of $62.52, for a total value of $39,075.00. Following the completion of the transaction, the director owned 26,554 shares in the company, valued at $1,660,156.08. The trade was a 2.30% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Theodore Leonsis sold 205,847 shares of the stock in a transaction on Wednesday, June 11th. The shares were sold at an average price of $67.66, for a total value of $13,927,608.02. Following the sale, the director directly owned 15,511 shares in the company, valued at $1,049,474.26. This trade represents a 92.99% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 758,772 shares of company stock valued at $51,005,175. Company insiders own 27.60% of the company's stock.

Institutional Trading of Tempus AI

A number of institutional investors have recently made changes to their positions in TEM. Pathway Capital Management LP purchased a new position in shares of Tempus AI during the 1st quarter worth $8,576,000. Wells Fargo & Company MN lifted its holdings in shares of Tempus AI by 13.2% in the fourth quarter. Wells Fargo & Company MN now owns 2,384 shares of the company's stock worth $80,000 after buying an additional 278 shares in the last quarter. SeaCrest Wealth Management LLC bought a new stake in shares of Tempus AI in the first quarter worth about $535,000. Sumitomo Mitsui Trust Group Inc. grew its holdings in shares of Tempus AI by 31.4% in the first 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 in the last quarter. Finally, Massachusetts Financial Services Co. MA grew its stake in shares of Tempus AI by 92.6% in the 1st quarter. Massachusetts Financial Services Co. MA now owns 578,890 shares of the company's stock worth $27,926,000 after buying an additional 278,311 shares in the last quarter. 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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