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

Key Points

• Tempus AI, Inc. experienced a significant increase in call options trading, with 89,646 options purchased, marking a 38% rise over the average volume.
• Analyst ratings for Tempus AI show a consensus of seven "buy" ratings and six "hold" ratings, with a price target average of $69.50.
• The company's recent quarterly earnings report showed a revenue growth of 89.5% year-over-year, reporting $314.64 million, surpassing estimates.

Tempus AI, Inc. (NASDAQ:TEM - Get Free Report) saw some unusual options trading on Thursday. Stock traders bought 89,646 call options on the stock. This represents an increase of 38% compared to the typical volume of 65,170 call options.

Analyst Ratings Changes

A number of research firms have recently commented on TEM. Guggenheim boosted their price target on shares of Tempus AI from $65.00 to $75.00 and gave the company a "buy" rating in a research report on Monday, June 30th. Bank of America increased their price target on Tempus AI from $68.00 to $70.00 and gave the stock a "neutral" rating in a research note on Wednesday, June 25th. Needham & Company LLC reaffirmed a "buy" rating and issued a $70.00 price objective on shares of Tempus AI in a research note on Friday, August 8th. BTIG Research upped their price objective on shares of Tempus AI from $75.00 to $85.00 and gave the company a "buy" rating in a report on Wednesday, August 20th. Finally, Morgan Stanley boosted their target price on Tempus AI from $65.00 to $68.00 and gave the stock an "overweight" rating in a report on Tuesday, August 12th. Seven investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $69.50.

Tempus AI Price Performance

Shares of NASDAQ:TEM traded up $11.72 on Thursday, reaching $89.88. 15,585,038 shares of the company traded hands, compared to its average volume of 12,312,926. The company's 50 day moving average is $66.53 and its 200-day moving average is $59.29. The stock has a market capitalization of $15.62 billion, a PE ratio of -75.61 and a beta of 5.08. The company has a debt-to-equity ratio of 2.58, a current ratio of 1.54 and a quick ratio of 1.43. Tempus AI has a fifty-two week low of $31.36 and a fifty-two week high of $91.45.

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

Insider Activity at Tempus AI

In other Tempus AI news, EVP Andrew Polovin sold 5,398 shares of Tempus AI stock in a transaction on Tuesday, August 19th. The stock was sold at an average price of $74.65, for a total transaction of $402,960.70. Following the completion of the transaction, the executive vice president directly 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 Securities & Exchange Commission, which can be accessed through this link. Also, CEO Eric P. Lefkofsky sold 332,500 shares of the stock in a transaction on Wednesday, August 27th. The shares were sold at an average price of $74.10, for a total transaction of $24,638,250.00. Following the completion of the sale, the chief executive officer owned 9,207,533 shares of the company's stock, valued at approximately $682,278,195.30. This represents a 3.49% decrease in their position. The disclosure for this sale can be found here. Insiders sold 903,104 shares of company stock valued at $63,733,330 in the last ninety days. 26.27% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the stock. Pathway Capital Management LP purchased a new position in Tempus AI in the first quarter valued at approximately $8,576,000. SeaCrest Wealth Management LLC purchased a new stake in shares of Tempus AI during the first quarter worth about $535,000. Sumitomo Mitsui Trust Group Inc. boosted its holdings in shares of Tempus AI by 31.4% during the 1st quarter. Sumitomo Mitsui Trust Group Inc. now owns 4,255,477 shares of the company's stock valued at $205,284,000 after purchasing an additional 1,016,384 shares during the last quarter. Massachusetts Financial Services Co. MA raised its stake in Tempus AI by 92.6% during the first quarter. Massachusetts Financial Services Co. MA now owns 578,890 shares of the company's stock valued at $27,926,000 after purchasing an additional 278,311 shares in the last quarter. Finally, Cambridge Investment Research Advisors Inc. bought a new stake in Tempus AI in the first quarter worth $1,019,000. Institutional investors and hedge funds own 24.22% of the company's stock.

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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