Tempus AI (NASDAQ:TEM) Trading Up 4.7% After Analyst Upgrade

Key Points

• Tempus AI's stock price rose 4.7% after BTIG Research upgraded their price target from $75.00 to $85.00, with a current buy rating on the stock.
• Multiple analysts have increased their price targets for Tempus AI, with a consensus rating of "Moderate Buy" and an average target price of $67.64.
• The company reported a revenue increase of 89.5% year-over-year for the latest quarter, surpassing expectations with $314.64 million in revenue, though it still posted a negative EPS of ($0.22).

Tempus AI, Inc. (NASDAQ:TEM - Get Free Report) shares were up 4.7% during mid-day trading on Thursday after BTIG Research raised their price target on the stock from $75.00 to $85.00. BTIG Research currently has a buy rating on the stock. Tempus AI traded as high as $77.46 and last traded at $76.71. Approximately 5,906,707 shares were traded during mid-day trading, a decline of 53% from the average daily volume of 12,529,988 shares. The stock had previously closed at $73.28.

Several other equities analysts also recently weighed in on the stock. Morgan Stanley raised 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. Guggenheim lifted 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 reiterated a "neutral" rating on shares of Tempus AI in a report on Friday, August 8th. Bank of America lifted their price target on shares of Tempus AI from $68.00 to $70.00 and gave the stock a "neutral" rating in a report on Wednesday, June 25th. Finally, Needham & Company LLC reiterated a "buy" rating and set a $70.00 price target on shares of Tempus AI in a report on Friday, August 8th. Six equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $67.64.

Insiders Place Their Bets

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 approximately $8,700,000. This trade represents a 3.33% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Jennifer A. Doudna sold 625 shares of Tempus AI 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 transaction, the director directly owned 26,554 shares in the company, valued at approximately $1,660,156.08. This trade represents a 2.30% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 723,039 shares of company stock valued at $49,035,482. 27.60% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of TEM. Vanguard Group Inc. lifted its position 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 lifted its position in Tempus AI by 35.9% during the first quarter. ARK Investment Management LLC now owns 7,501,399 shares of the company's stock valued at $361,867,000 after buying an additional 1,981,755 shares in the last quarter. Nikko Asset Management Americas Inc. lifted its position in Tempus AI by 31.5% during the first quarter. Nikko Asset Management Americas Inc. now owns 4,260,553 shares of the company's stock valued at $205,401,000 after buying an additional 1,021,460 shares in the last quarter. Sumitomo Mitsui Trust Group Inc. lifted its position in shares of Tempus AI by 31.4% during the first quarter. Sumitomo Mitsui Trust Group Inc. now owns 4,255,477 shares of the company's stock worth $205,284,000 after purchasing an additional 1,016,384 shares in the last quarter. Finally, AQR Capital Management LLC acquired a new position in shares of Tempus AI during the second quarter worth $54,020,000. 24.22% of the stock is owned by institutional investors and hedge funds.

Tempus AI Trading Up 4.9%

The business's 50-day moving average price is $63.48 and its 200 day moving average price is $58.98. The company has a debt-to-equity ratio of 2.58, a current ratio of 1.54 and a quick ratio of 1.43. The firm has a market capitalization of $13.36 billion, a price-to-earnings ratio of -64.37 and a beta of 4.98.

Tempus AI (NASDAQ:TEM - Get Free Report) last posted its earnings results on Friday, August 8th. The company reported ($0.22) EPS for the quarter, topping analysts' consensus estimates 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 business had revenue of $314.64 million for the quarter, compared to analysts' expectations of $296.84 million. During the same period in the previous year, the company posted ($6.86) earnings per share. The business's revenue for the quarter was up 89.5% compared to the same quarter last year. Tempus AI has set its FY 2025 guidance at EPS. On average, equities analysts forecast that Tempus AI, Inc. will post -6.15 earnings per share for the current fiscal year.

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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