Tempus AI (NASDAQ:TEM) Trading Up 8.9% - What's Next?

Key Points

• Tempus AI's stock saw a significant increase of 8.9%, rising from a previous closing price of $76.71 to $83.55, with a trading volume decline of 39%.
• Research firms have mixed ratings on the stock, with a consensus rating of "Moderate Buy" and a target price of $67.64, indicating varying levels of confidence among analysts.
• For the most recent quarter, Tempus AI reported a revenue of $314.64 million, which exceeded estimates, and managed to beat earnings expectations with a loss of ($0.22) per share versus a forecast of ($0.23).

Tempus AI, Inc. (NASDAQ:TEM - Get Free Report) was up 8.9% during trading on Friday . The stock traded as high as $82.94 and last traded at $83.55. Approximately 7,637,705 shares traded hands during mid-day trading, a decline of 39% from the average daily volume of 12,555,472 shares. The stock had previously closed at $76.71.

Wall Street Analyst Weigh In

A number of research firms have recently issued reports on TEM. Piper Sandler reiterated a "neutral" rating on shares of Tempus AI in a research note on Friday, August 8th. Bank of America boosted their price objective on Tempus AI from $68.00 to $70.00 and gave the stock a "neutral" rating in a report on Wednesday, June 25th. Guggenheim lifted their target price on Tempus AI from $65.00 to $75.00 and gave the company a "buy" rating in a research note on Monday, June 30th. BTIG Research boosted their price target on Tempus AI from $75.00 to $85.00 and gave the company a "buy" rating in a research note on Wednesday. Finally, Morgan Stanley upped their target price on Tempus AI from $65.00 to $68.00 and gave the stock an "overweight" rating in a research report on Tuesday, August 12th. Six investment analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. Based on data from MarketBeat, Tempus AI currently has a consensus rating of "Moderate Buy" and a consensus target price of $67.64.

Tempus AI Stock Performance

The stock has a market capitalization of $13.99 billion, a price-to-earnings ratio of -67.66 and a beta of 4.98. The stock's 50 day moving average is $63.59 and its two-hundred day moving average is $59.09. The company has a current ratio of 1.54, a quick ratio of 1.43 and a debt-to-equity ratio of 2.58.

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

Insider Buying and Selling at Tempus AI

In other Tempus AI news, EVP Andrew Polovin sold 5,398 shares of the firm's stock in a transaction that occurred on Tuesday, August 19th. The stock was sold at an average price of $74.65, for a total value of $402,960.70. Following the completion of the sale, the executive vice president owned 132,056 shares of the company's stock, valued at approximately $9,857,980.40. This trade represents a 3.93% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CEO Eric P. Lefkofsky sold 17,458 shares of the firm's stock in a transaction that occurred on Tuesday, August 19th. The shares were sold at an average price of $74.65, for a total value of $1,303,239.70. Following the completion of the transaction, the chief executive officer owned 2,020,042 shares in the company, valued at $150,796,135.30. This represents a 0.86% decrease in their position. The disclosure for this sale can be found here. Insiders sold 776,451 shares of company stock worth $53,022,688 over the last quarter. 27.60% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Tempus AI

Hedge funds have recently added to or reduced their stakes in the company. Concord Wealth Partners lifted its holdings in Tempus AI by 308.0% in the 2nd quarter. Concord Wealth Partners now owns 408 shares of the company's stock worth $26,000 after buying an additional 308 shares during the period. Allworth Financial LP increased its position in Tempus AI by 5,000.0% during the 2nd quarter. Allworth Financial LP now owns 459 shares of the company's stock valued at $29,000 after buying an additional 450 shares in the last quarter. Cherry Tree Wealth Management LLC bought a new stake in shares of Tempus AI in the 1st quarter worth $31,000. SouthState Corp increased its holdings in shares of Tempus AI by 3,761.5% in the 2nd quarter. SouthState Corp now owns 502 shares of the company's stock worth $32,000 after purchasing an additional 489 shares in the last quarter. Finally, University of Texas Texas AM Investment Management Co. bought a new stake in shares of Tempus AI in the 1st quarter worth $33,000. 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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