Tempus AI (NASDAQ:TEM) Trading Up 9.3% - Time to Buy?

Key Points

• Tempus AI shares rose 9.3% in mid-day trading, briefly reaching $51.40 and last trading near $51.91, though volume was well below its average daily level.
• Recent analyst activity was mixed, with several firms maintaining or raising bullish targets, but the overall consensus remains “Hold” with an average target price of $68.64.
• The company’s latest earnings beat expectations, reporting a smaller-than-expected loss and 36.1% revenue growth year over year, even as it still posted negative margins and a loss for the quarter.

Tempus AI, Inc. (NASDAQ:TEM - Get Free Report) was up 9.3% during mid-day trading on Thursday . The company traded as high as $51.40 and last traded at $51.9130. Approximately 2,426,541 shares traded hands during mid-day trading, a decline of 57% from the average daily volume of 5,704,903 shares. The stock had previously closed at $47.51.

Analyst Ratings Changes

Several equities research analysts have recently issued reports on TEM shares. TD Cowen lifted their target price on Tempus AI from $65.00 to $68.00 and gave the stock a "buy" rating in a report on Wednesday, May 6th. Wolfe Research started coverage on Tempus AI in a report on Tuesday. They issued a "peer perform" rating on the stock. Needham & Company LLC reaffirmed a "buy" rating and issued a $75.00 target price on shares of Tempus AI in a report on Monday. JPMorgan Chase & Co. reduced their target price on Tempus AI from $80.00 to $60.00 and set a "neutral" rating on the stock in a report on Wednesday, February 25th. Finally, Mizuho started coverage on Tempus AI in a report on Thursday, February 19th. They issued an "outperform" rating and a $100.00 target price on the stock. Nine analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $68.64.

Tempus AI Price Performance

The firm's 50 day simple moving average is $48.83 and its 200 day simple moving average is $57.67. The company has a market capitalization of $9.44 billion, a PE ratio of -30.37 and a beta of 3.62. The company has a quick ratio of 3.15, a current ratio of 3.31 and a debt-to-equity ratio of 2.96.

Tempus AI (NASDAQ:TEM - Get Free Report) last announced its earnings results on Tuesday, May 5th. The company reported ($0.13) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.21) by $0.08. Tempus AI had a negative return on equity of 53.83% and a negative net margin of 22.20%.The business had revenue of $348.12 million during the quarter, compared to analyst estimates of $345.44 million. During the same quarter in the previous year, the business earned ($0.24) earnings per share. The company's revenue for the quarter was up 36.1% compared to the same quarter last year. As a group, research analysts anticipate that Tempus AI, Inc. will post -1.35 EPS for the current fiscal year.

Insider Transactions at Tempus AI

In related news, CAO Ryan M. Bartolucci sold 4,116 shares of Tempus AI stock in a transaction dated Tuesday, May 19th. The stock was sold at an average price of $44.07, for a total value of $181,392.12. Following the completion of the sale, the chief accounting officer directly owned 74,041 shares in the company, valued at $3,262,986.87. The trade was a 5.27% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, EVP Andrew Polovin sold 8,703 shares of Tempus AI stock in a transaction dated Tuesday, May 19th. The shares were sold at an average price of $44.07, for a total value of $383,541.21. Following the completion of the sale, the executive vice president owned 128,215 shares of the company's stock, valued at $5,650,435.05. The trade was a 6.36% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 558,557 shares of company stock valued at $26,611,939 in the last ninety days. Corporate insiders own 24.26% of the company's stock.

Institutional Trading of Tempus AI

Institutional investors and hedge funds have recently made changes to their positions in the company. JPL Wealth Management LLC purchased a new stake in Tempus AI during the third quarter worth $26,000. Los Angeles Capital Management LLC purchased a new stake in Tempus AI during the fourth quarter worth $27,000. Harvest Fund Management Co. Ltd purchased a new stake in shares of Tempus AI during the 3rd quarter valued at $38,000. Whittier Trust Co. lifted its holdings in shares of Tempus AI by 190.0% during the 1st quarter. Whittier Trust Co. now owns 870 shares of the company's stock valued at $41,000 after purchasing an additional 570 shares during the last quarter. Finally, Lodestone Wealth Management LLC acquired a new position in shares of Tempus AI during the fourth quarter valued at about $42,000. 24.22% of the stock is currently owned by institutional investors.

About Tempus AI

Tempus is a technology-driven healthcare company that applies artificial intelligence and machine learning to clinical and molecular data in order to advance precision medicine. Its primary focus lies in oncology, where the company offers comprehensive genomic profiling, digital pathology services and data-driven insights to inform personalized cancer care. By integrating DNA and RNA sequencing with structured clinical information, Tempus enables clinicians and researchers to identify targeted treatment options for patients based on the genetic characteristics of their tumors.

The company's core offering centers on a scalable, cloud-based analytics platform that aggregates vast amounts of molecular and clinical data.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.