Tempus AI (NASDAQ:TEM) Shares Up 5.3% – Still a Buy?

Tempus AI, Inc. (NASDAQ:TEM)’s stock price rose 5.3% during trading on Wednesday. The stock traded as high as $75.21 and last traded at $75.9780. Approximately 609,567 shares were traded during mid-day trading, a decline of 90% from the average daily volume of 6,144,699 shares. The stock had previously closed at $72.15.

Wall Street Analysts Forecast Growth

TEM has been the topic of a number of recent analyst reports. Raymond James Financial set a $80.00 price target on shares of Tempus AI in a research report on Wednesday, September 2nd. Stifel Nicolaus lowered their price objective on shares of Tempus AI from $60.00 to $50.00 and set a “hold” rating for the company in a research report on Monday, August 3rd. UBS Group assumed coverage on Tempus AI in a research note on Wednesday, September 9th. They set a “neutral” rating and a $70.00 price objective on the stock. Roth Capital started coverage on Tempus AI in a report on Tuesday, September 8th. They set a “neutral” rating and a $67.00 target price on the stock. Finally, Rothschild & Co Redburn started coverage on Tempus AI in a research note on Tuesday, September 8th. They issued a “neutral” rating and a $67.00 target price for the company. Eleven research analysts have rated the stock with a Buy rating, nine have given a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $72.47.

Tempus AI Stock Up 1.6%

The firm has a market capitalization of $14.04 billion, a P/E ratio of -54.06 and a beta of 3.54. The firm’s 50-day moving average is $70.58 and its 200 day moving average is $57.05. The company has a debt-to-equity ratio of 3.06, a quick ratio of 3.16 and a current ratio of 3.30.

Tempus AI (NASDAQ:TEM) last issued its quarterly earnings results on Thursday, July 30th. The company reported ($0.04) earnings per share for the quarter, topping the consensus estimate of ($0.14) by $0.10. Tempus AI had a negative net margin of 17.77% and a negative return on equity of 50.28%. The company had revenue of $382.49 million during the quarter, compared to analysts’ expectations of $379.69 million. During the same period last year, the business earned ($0.22) EPS. The business’s quarterly revenue was up 21.6% on a year-over-year basis. As a group, equities research analysts predict that Tempus AI, Inc. will post -1.45 EPS for the current fiscal year.

Insider Activity

In related news, EVP Andrew Polovin sold 22,148 shares of the business’s stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $49.61, for a total transaction of $1,098,762.28. Following the transaction, the executive vice president directly owned 146,067 shares of the company’s stock, valued at approximately $7,246,383.87. The trade was a 13.17% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO James Rogers sold 26,313 shares of the company’s stock in a transaction on Wednesday, August 19th. The shares were sold at an average price of $60.00, for a total transaction of $1,578,780.00. Following the completion of the transaction, the chief financial officer owned 106,024 shares in the company, valued at approximately $6,361,440. This represents a 19.88% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders sold 1,280,965 shares of company stock worth $87,472,564. Insiders own 24.26% of the company’s stock.

Institutional Trading of Tempus AI

Several hedge funds have recently added to or reduced their stakes in the company. Sumitomo Mitsui Trust Group Inc. increased its holdings in shares of Tempus AI by 23.4% during the first quarter. Sumitomo Mitsui Trust Group Inc. now owns 4,326,313 shares of the company’s stock worth $195,636,000 after purchasing an additional 821,490 shares during the period. Amova Asset Management Americas Inc. grew its stake in Tempus AI by 23.4% during the first quarter. Amova Asset Management Americas Inc. now owns 4,326,313 shares of the company’s stock worth $195,549,000 after buying an additional 821,490 shares in the last quarter. Eagle Health Investments LP bought a new position in Tempus AI in the 1st quarter valued at about $11,588,000. Washington Trust Advisors Inc. raised its position in shares of Tempus AI by 35.7% in the 3rd quarter. Washington Trust Advisors Inc. now owns 121,039 shares of the company’s stock valued at $9,913,000 after buying an additional 31,873 shares in the last quarter. Finally, International Assets Investment Management LLC raised its position in shares of Tempus AI by 3,027.6% in the 3rd quarter. International Assets Investment Management LLC now owns 104,555 shares of the company’s stock valued at $8,563,000 after buying an additional 101,212 shares in the last quarter. 24.22% of the stock is owned by institutional investors and hedge funds.

About Tempus AI

Tempus AI, Inc is a healthcare technology company that uses artificial intelligence and data analytics to support precision medicine. The company combines clinical, molecular and imaging data to help physicians make more informed treatment decisions and to help researchers and biopharmaceutical companies develop therapies.

Its offerings include genomic testing and analysis, such as tissue- and blood-based tests, as well as software tools designed to assist with clinical decision-making, patient matching for clinical trials and the management of healthcare data.