Tempus AI (NASDAQ:TEM) Upgraded to Hold at Wall Street Zen

Key Points

• Tempus AI was upgraded by Wall Street Zen from “sell” to “hold”, even as the stock has recently seen mixed analyst sentiment. The broader consensus remains Hold, with an average price target of $68.92.
• The stock was down 7.2% and opened at $42.69, near its 12-month low of $41.73 and well below its 52-week high of $104.32. Tempus AI’s shares also trade below both the 50-day and 200-day moving averages.
• The company reported better-than-expected quarterly results, with EPS of -$0.13 versus estimates of -$0.21 and revenue of $348.12 million, up 36.1% year over year. However, insider selling has been notable, including recent sales by the CEO and CAO.

Tempus AI (NASDAQ:TEM - Get Free Report) was upgraded by equities researchers at Wall Street Zen from a "sell" rating to a "hold" rating in a research note issued on Saturday.

Several other analysts also recently commented on the stock. TD Cowen reiterated a "buy" rating on shares of Tempus AI in a report on Wednesday, July 15th. Guggenheim boosted their price target on shares of Tempus AI from $60.00 to $65.00 and gave the stock a "buy" rating in a report on Thursday, July 16th. Freedom Capital raised shares of Tempus AI to a "hold" rating in a research report on Tuesday, June 30th. Lake Street Capital lowered shares of Tempus AI to a "hold" rating in a research note on Monday. Finally, Jefferies Financial Group began coverage on shares of Tempus AI in a research report on Monday, April 13th. They set an "underperform" rating and a $35.00 target price on the stock. Nine research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average price target of $68.92.

Tempus AI Trading Down 7.2%

Shares of Tempus AI stock opened at $42.69 on Friday. The stock has a fifty day simple moving average of $51.65 and a 200 day simple moving average of $53.56. Tempus AI has a 12-month low of $41.73 and a 12-month high of $104.32. The company has a market capitalization of $7.67 billion, a P/E ratio of -24.82 and a beta of 3.46. The company has a current ratio of 3.31, a quick ratio of 3.15 and a debt-to-equity ratio of 2.96.

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

Insider Activity at Tempus AI

In related news, CAO Ryan M. Bartolucci sold 4,116 shares of the business's stock in a transaction dated Tuesday, May 19th. The shares were sold at an average price of $44.07, for a total value of $181,392.12. Following the transaction, the chief accounting officer directly owned 74,041 shares of the company's stock, valued at approximately $3,262,986.87. The trade was a 5.27% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Ryan Fukushima sold 33,284 shares of the stock in a transaction dated Wednesday, July 8th. The shares were sold at an average price of $57.39, for a total transaction of $1,910,168.76. Following the transaction, the chief executive officer owned 167,763 shares of the company's stock, valued at approximately $9,627,918.57. The trade was a 16.56% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 616,043 shares of company stock worth $31,748,593. 24.26% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Handelsbanken Fonder AB increased its stake in shares of Tempus AI by 4.1% during the 2nd quarter. Handelsbanken Fonder AB now owns 32,900 shares of the company's stock worth $1,906,000 after purchasing an additional 1,300 shares during the last quarter. CoreCap Advisors LLC lifted its stake in Tempus AI by 293.4% in the second quarter. CoreCap Advisors LLC now owns 1,019 shares of the company's stock valued at $59,000 after purchasing an additional 760 shares during the last quarter. NewEdge Advisors LLC grew its holdings in Tempus AI by 1.3% during the first quarter. NewEdge Advisors LLC now owns 42,996 shares of the company's stock valued at $1,944,000 after purchasing an additional 536 shares during the period. Avidity Partners Management LP bought a new position in Tempus AI during the first quarter valued at $1,130,000. Finally, Silverback Asset Management LLC increased its position in Tempus AI by 44.5% in the first quarter. Silverback Asset Management LLC now owns 35,700 shares of the company's stock worth $1,614,000 after buying an additional 11,000 shares during the last quarter. 24.22% of the stock is owned by institutional investors.

Tempus AI Company Profile

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.

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