Tempus AI (NASDAQ:TEM) Trading Up 3.5% - Here's What Happened

Key Points

• Tempus AI's share price increased by 3.5% to $74.07, although trading volume decreased significantly to around 6.6 million shares, down 47% from its average.
• Analysts have given Tempus AI a "Moderate Buy" rating with an average price target of $65.36, as six analysts are recommending buying the stock.
• Despite reporting a quarterly loss of $0.22 EPS, Tempus AI's revenue grew 89.5% year-over-year, reaching $314.64 million, surpassing analyst expectations.

Tempus AI, Inc. (NASDAQ:TEM - Get Free Report)'s share price traded up 3.5% during trading on Friday . The stock traded as high as $75.73 and last traded at $74.07. 6,620,693 shares traded hands during mid-day trading, a decline of 47% from the average session volume of 12,491,819 shares. The stock had previously closed at $71.59.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently weighed in on TEM shares. BTIG Research assumed coverage on Tempus AI in a research note on Friday, August 8th. They set a "buy" rating and a $60.00 price objective for the company. Guggenheim raised their target price on Tempus AI from $65.00 to $75.00 and gave the stock a "buy" rating in a report on Monday, June 30th. 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. 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 Tempus AI from $65.00 to $68.00 and gave the stock an "overweight" rating in a research note on Tuesday. Six analysts have rated the stock with a hold rating and six have assigned a buy rating to the stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $65.36.

Tempus AI Trading Up 3.9%

The business's 50-day moving average price is $62.90 and its 200 day moving average price is $58.41. The company has a market cap of $12.88 billion, a P/E ratio of -62.31 and a beta of 4.98. The company has a debt-to-equity ratio of 2.58, a quick ratio of 1.56 and a current ratio of 1.54.

Tempus AI (NASDAQ:TEM - Get Free Report) last issued its 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. 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 period in the previous year, the company earned ($6.86) EPS. The business's revenue for the quarter was up 89.5% compared to the same quarter last year. As a group, analysts expect that Tempus AI, Inc. will post -6.15 earnings per share for the current year.

Insider Buying and Selling

In related news, COO Ryan Fukushima sold 5,000 shares of the firm's stock in a transaction that occurred on Monday, July 7th. The shares were sold at an average price of $60.00, for a total value of $300,000.00. Following the sale, the chief operating officer directly owned 145,000 shares of the company's stock, valued at $8,700,000. This trade represents a 3.33% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Jennifer A. Doudna sold 625 shares of the firm's stock in a transaction that occurred on Tuesday, July 1st. The shares were sold at an average price of $62.52, for a total transaction of $39,075.00. Following the completion of the sale, the director directly owned 26,554 shares in the company, valued at $1,660,156.08. This represents a 2.30% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 758,772 shares of company stock valued at $51,005,175 over the last 90 days. 27.60% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Tempus AI

Several hedge funds and other institutional investors have recently made changes to their positions in TEM. Pathway Capital Management LP purchased a new stake in shares of Tempus AI in the first quarter valued at approximately $8,576,000. Wells Fargo & Company MN grew its holdings in shares of Tempus AI by 13.2% during the fourth quarter. Wells Fargo & Company MN now owns 2,384 shares of the company's stock valued at $80,000 after purchasing an additional 278 shares during the last quarter. SeaCrest Wealth Management LLC acquired a new stake in Tempus AI during the 1st quarter valued at $535,000. Sumitomo Mitsui Trust Group Inc. raised its stake in 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, Massachusetts Financial Services Co. MA increased its stake in shares of Tempus AI by 92.6% in the first quarter. Massachusetts Financial Services Co. MA now owns 578,890 shares of the company's stock worth $27,926,000 after acquiring an additional 278,311 shares during the last quarter. Hedge funds and other institutional investors own 24.22% of the company's stock.

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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