Tempus AI (NASDAQ:TEM) Shares Up 6.9% – Should You Buy?

Shares of Tempus AI, Inc. (NASDAQ:TEM) shot up 6.9% on Thursday . The stock traded as high as $49.75 and last traded at $50.44. 1,259,494 shares changed hands during trading, a decline of 77% from the average session volume of 5,533,104 shares. The stock had previously closed at $47.17.

Wall Street Analysts Forecast Growth

Several brokerages have recently weighed in on TEM. Needham & Company LLC reaffirmed a “buy” rating and set a $75.00 target price on shares of Tempus AI in a research note on Wednesday, March 11th. Jefferies Financial Group started coverage on shares of Tempus AI in a research report on Monday, April 13th. They set an “underperform” rating and a $35.00 price target for the company. Wall Street Zen downgraded shares of Tempus AI from a “hold” rating to a “sell” rating in a research report on Saturday, February 28th. Mizuho started coverage on shares of Tempus AI in a research report on Thursday, February 19th. They set an “outperform” rating and a $100.00 price target for the company. Finally, BTIG Research reduced their price target on shares of Tempus AI from $90.00 to $80.00 and set a “buy” rating for the company in a research report on Friday, May 8th. Nine research analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, Tempus AI has a consensus rating of “Moderate Buy” and an average target price of $68.64.

Tempus AI Trading Down 1.6%

The company has a 50 day moving average of $48.73 and a 200 day moving average of $58.19. The company has a debt-to-equity ratio of 2.96, a quick ratio of 3.15 and a current ratio of 3.31. The stock has a market capitalization of $9.06 billion, a price-to-earnings ratio of -29.34 and a beta of 3.99.

Tempus AI (NASDAQ:TEM) last posted its quarterly earnings data on Tuesday, May 5th. The company reported ($0.13) 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 firm had revenue of $348.12 million during the quarter, compared to the consensus estimate of $345.44 million. During the same period in the prior year, the company earned ($0.24) EPS. The firm’s revenue was up 36.1% compared to the same quarter last year. On average, research analysts predict that Tempus AI, Inc. will post -1.35 EPS for the current fiscal year.

Insider Buying and Selling

In other Tempus AI news, CFO James William Rogers sold 10,853 shares of the stock in a transaction dated Tuesday, May 19th. The shares were sold at an average price of $44.07, for a total value of $478,291.71. Following the completion of the sale, the chief financial officer owned 126,395 shares in the company, valued at approximately $5,570,227.65. This represents a 7.91% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible 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 the stock in a transaction dated Tuesday, May 19th. The shares were sold at an average price of $44.07, for a total transaction 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 approximately $5,650,435.05. The trade was a 6.36% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 558,307 shares of company stock worth $26,599,589 in the last 90 days. Corporate insiders own 24.26% of the company’s stock.

Institutional Trading of Tempus AI

A number of hedge funds and other institutional investors have recently modified their holdings of TEM. Royal Bank of Canada increased its stake in shares of Tempus AI by 201.2% in the 1st quarter. Royal Bank of Canada now owns 25,988 shares of the company’s stock worth $1,253,000 after acquiring an additional 17,359 shares during the last quarter. Rhumbline Advisers acquired a new stake in shares of Tempus AI in the 1st quarter worth $116,000. Prudential Financial Inc. acquired a new stake in shares of Tempus AI in the 2nd quarter worth $276,000. Russell Investments Group Ltd. increased its stake in shares of Tempus AI by 21.3% in the 2nd quarter. Russell Investments Group Ltd. now owns 6,527 shares of the company’s stock worth $415,000 after acquiring an additional 1,146 shares during the last quarter. Finally, Invesco Ltd. increased its stake in shares of Tempus AI by 2,926.6% in the 2nd quarter. Invesco Ltd. now owns 211,621 shares of the company’s stock worth $13,446,000 after acquiring an additional 204,629 shares during the last quarter. 24.22% of the stock is owned by institutional investors and hedge funds.

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.