Tempus AI (NASDAQ:TEM) Shares Down 7.8% – Time to Sell?

Shares of Tempus AI, Inc. (NASDAQ:TEM) were down 7.8% during mid-day trading on Friday. The stock traded as low as $70.55 and last traded at $69.9910. Approximately 808,135 shares changed hands during trading, a decline of 87% from the average daily volume of 6,219,010 shares. The stock had previously closed at $75.89.

Analyst Ratings Changes

A number of analysts have commented on the company. Canaccord Genuity Group boosted their target price on Tempus AI from $80.00 to $95.00 and gave the stock a “buy” rating in a research report on Monday, October 12th. The Goldman Sachs Group started coverage on Tempus AI in a research report on Monday, September 21st. They issued a “neutral” rating and a $75.00 price target for the company. Rothschild & Co Redburn started coverage on shares of Tempus AI in a research report on Tuesday, September 8th. They issued a “neutral” rating and a $67.00 price objective on the stock. Weiss Ratings raised shares of Tempus AI from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Tuesday, October 13th. Finally, Wall Street Zen upgraded shares of Tempus AI from a “sell” rating to a “hold” rating in a report on Saturday, July 25th. Eleven investment analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus price target of $79.37.

Tempus AI Price Performance

The company has a debt-to-equity ratio of 2.70, a current ratio of 2.61 and a quick ratio of 2.48. The firm has a market capitalization of $13.06 billion, a PE ratio of -67.55 and a beta of 3.61. The company has a 50-day moving average price of $72.84 and a 200-day moving average price of $57.54.

Tempus AI (NASDAQ:TEM) last posted its quarterly earnings data on Monday, November 2nd. The company reported $0.07 EPS for the quarter, topping analysts’ consensus estimates of ($0.09) by $0.16. Tempus AI had a negative return on equity of 47.00% and a negative net margin of 12.54%. The firm had revenue of $411.54 million during the quarter, compared to analysts’ expectations of $409.39 million. During the same quarter last year, the business posted ($0.46) EPS. The firm’s quarterly revenue was up 23.1% compared to the same quarter last year. Sell-side analysts forecast that Tempus AI, Inc. will post -1.20 EPS for the current year.

Insider Activity

In related news, CFO James Rogers sold 26,313 shares of the company’s stock in a transaction that occurred 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 transaction, the chief financial officer owned 106,024 shares of the company’s stock, valued at approximately $6,361,440. This represents a 19.88% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at 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, CEO Ryan Fukushima sold 41,095 shares of the firm’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 $2,038,722.95. Following the sale, the chief executive officer owned 562,463 shares in the company, valued at approximately $27,903,789.43. This trade represents a 6.81% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, insiders sold 1,237,227 shares of company stock worth $85,388,983. Corporate insiders own 24.26% of the company’s stock.

Institutional Investors Weigh In On Tempus AI

Several institutional investors and hedge funds have recently modified their holdings of TEM. Guardian Partners Inc. increased its holdings in shares of Tempus AI by 8.3% during the 3rd quarter. Guardian Partners Inc. now owns 2,600 shares of the company’s stock valued at $213,000 after acquiring an additional 200 shares during the last quarter. Kestra Private Wealth Services LLC lifted its holdings in Tempus AI by 1.4% in the 3rd quarter. Kestra Private Wealth Services LLC now owns 18,685 shares of the company’s stock worth $1,530,000 after purchasing an additional 257 shares during the last quarter. V Square Quantitative Management LLC acquired a new stake in Tempus AI in the 3rd quarter worth approximately $27,000. ProShare Advisors LLC lifted its holdings in Tempus AI by 5.9% in the 3rd quarter. ProShare Advisors LLC now owns 6,500 shares of the company’s stock worth $532,000 after purchasing an additional 360 shares during the last quarter. Finally, Cyndeo Wealth Partners LLC boosted its position in Tempus AI by 6.7% during the third quarter. Cyndeo Wealth Partners LLC now owns 6,412 shares of the company’s stock worth $525,000 after purchasing an additional 400 shares during the period. Hedge funds and other institutional investors own 24.22% of the company’s stock.

About Tempus AI

Tempus AI is a technology company focused on applying data and artificial intelligence to healthcare, with an emphasis on precision medicine. Its platform combines clinical and molecular data to help physicians make more informed treatment decisions and support life-sciences research. The company provides genomic sequencing and other diagnostic testing, software tools for analyzing patient data, and services that help identify clinical trial opportunities. Its work spans oncology and other areas of medicine, and it collaborates with healthcare providers and pharmaceutical and biotechnology companies.