Traders Purchase High Volume of Call Options on Tempus AI (NASDAQ:TEM)

Key Points

• Tempus AI experienced a **63% increase** in call options trading activity, with **89,671 call options** bought on Friday, indicating heightened investor interest.
• Insider transactions included a **significant sale** by Director Theodore Leonsis, who sold **205,847 shares** for over **$13.9 million**, reducing his stake in the company by nearly **93%**.
• Institutional investments in Tempus AI have been growing, with Pathway Capital Management acquiring a new stake worth approximately **$8.6 million** in the first quarter.

Tempus AI, Inc. (NASDAQ:TEM - Get Free Report) saw unusually large options trading activity on Friday. Stock investors bought 89,671 call options on the company. Thisrepresentsanincreaseofapproximately63% compared to the average volume of 54,925 call options.

Tempus AI Stock Up 3.6%

Shares of NASDAQ:TEM traded up $2.13 during midday trading on Friday, hitting $60.87. 26,073,235 shares of the company's stock were exchanged, compared to its average volume of 8,255,315. Tempus AI has a 12 month low of $31.36 and a 12 month high of $91.45. The company has a market cap of $10.54 billion, a PE ratio of -7.80 and a beta of 4.98. The stock has a 50 day moving average price of $62.47 and a 200-day moving average price of $58.00. The company has a debt-to-equity ratio of 2.45, a current ratio of 1.71 and a quick ratio of 1.56.

Tempus AI (NASDAQ:TEM - Get Free Report) last released 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. Tempus AI had a negative net margin of 88.27% and a negative return on equity of 533.21%. 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 earned ($6.86) earnings per share. The firm's revenue for the quarter was up 89.5% compared to the same quarter last year. On average, sell-side analysts anticipate that Tempus AI will post -6.15 EPS for the current fiscal year.

Insider Activity at Tempus AI

In other news, EVP Erik Phelps sold 51,317 shares of Tempus AI stock in a transaction on Monday, June 16th. The shares were sold at an average price of $72.56, for a total transaction of $3,723,561.52. Following the transaction, the executive vice president owned 97,779 shares in the company, valued at approximately $7,094,844.24. The trade was a 34.42% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Andrew Polovin sold 17,552 shares of Tempus AI stock in a transaction on Tuesday, May 20th. The stock was sold at an average price of $63.43, for a total transaction of $1,113,323.36. Following the transaction, the executive vice president owned 138,877 shares in the company, valued at approximately $8,808,968.11. This trade represents a 11.22% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 758,772 shares of company stock valued at $51,005,175 in the last quarter. Insiders own 27.60% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Pathway Capital Management LP purchased a new position in Tempus AI in the first quarter valued at about $8,576,000. Wells Fargo & Company MN boosted its stake in Tempus AI by 13.2% in the fourth quarter. Wells Fargo & Company MN now owns 2,384 shares of the company's stock valued at $80,000 after acquiring an additional 278 shares during the last quarter. SeaCrest Wealth Management LLC purchased a new position in Tempus AI in the first quarter valued at about $535,000. Sumitomo Mitsui Trust Group Inc. boosted its stake in Tempus AI by 31.4% in the first quarter. Sumitomo Mitsui Trust Group Inc. now owns 4,255,477 shares of the company's stock valued at $205,284,000 after acquiring an additional 1,016,384 shares during the last quarter. Finally, Massachusetts Financial Services Co. MA boosted its stake in Tempus AI by 92.6% in the first quarter. Massachusetts Financial Services Co. MA now owns 578,890 shares of the company's stock valued at $27,926,000 after acquiring an additional 278,311 shares during the last quarter. 24.22% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of equities analysts recently weighed in on the stock. Guggenheim lifted their target price on shares of Tempus AI from $65.00 to $75.00 and gave the stock a "buy" rating in a research note on Monday, June 30th. Morgan Stanley lifted their target price on shares of Tempus AI from $60.00 to $65.00 and gave the stock an "overweight" rating in a research note on Friday, May 9th. Bank of America lifted their target price on shares of Tempus AI from $68.00 to $70.00 and gave the stock a "neutral" rating in a research note on Wednesday, June 25th. BTIG Research assumed coverage on shares of Tempus AI in a research note on Friday. They set a "buy" rating and a $60.00 target price for the company. Finally, Piper Sandler reissued a "neutral" rating on shares of Tempus AI in a research note on Friday. Six research analysts have rated the stock with a hold rating and six have issued a buy rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $65.09.

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.