Tempus AI (NASDAQ:TEM) Shares Gap Up – Here’s What Happened

Tempus AI, Inc. (NASDAQ:TEM)’s share price gapped up before the market opened on Tuesday . The stock had previously closed at $63.05, but opened at $65.64. Tempus AI shares last traded at $64.6920, with a volume of 1,265,656 shares trading hands.

Analyst Upgrades and Downgrades

A number of brokerages have commented on TEM. Wolfe Research began coverage on shares of Tempus AI in a research note on Tuesday, June 2nd. They set a “peer perform” rating for the company. Guggenheim upped their price objective on Tempus AI from $60.00 to $65.00 and gave the company a “buy” rating in a research note on Thursday, July 16th. Needham & Company LLC reaffirmed a “buy” rating and issued a $75.00 price target on shares of Tempus AI in a research note on Friday, July 31st. Wall Street Zen raised Tempus AI from a “sell” rating to a “hold” rating in a report on Saturday, July 25th. Finally, Lake Street Capital cut shares of Tempus AI to a “hold” rating in a research note on Monday, July 20th. Ten research analysts have rated the stock with a Buy rating, five have given a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat.com, Tempus AI currently has an average rating of “Hold” and an average target price of $67.23.

Tempus AI Stock Down 1.3%

The company has a debt-to-equity ratio of 3.06, a current ratio of 3.30 and a quick ratio of 3.16. The company has a market cap of $11.23 billion, a price-to-earnings ratio of -43.14 and a beta of 3.58. The firm has a 50-day moving average price of $54.93 and a 200 day moving average price of $51.81.

Tempus AI (NASDAQ:TEM) last issued its earnings results on Thursday, July 30th. The company reported ($0.04) EPS for the quarter, topping the consensus estimate of ($0.14) by $0.10. The firm had revenue of $382.49 million during the quarter, compared to the consensus estimate of $379.69 million. Tempus AI had a negative return on equity of 50.28% and a negative net margin of 17.77%.The business’s quarterly revenue was up 21.6% on a year-over-year basis. During the same quarter in the previous year, the firm earned ($0.22) earnings per share. Sell-side analysts predict that Tempus AI, Inc. will post -1.38 EPS for the current year.

Insider Activity

In other news, CEO Ryan Fukushima sold 41,095 shares of the company’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 value of $2,038,722.95. Following the completion of the transaction, the chief executive officer directly owned 562,463 shares of the company’s stock, valued at $27,903,789.43. This represents a 6.81% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, EVP Andrew Polovin sold 22,148 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 $1,098,762.28. Following the sale, the executive vice president 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 disclosure for this sale is available in the SEC filing. 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. Insiders sold 1,040,988 shares of company stock valued at $56,756,417 over the last ninety days. Company insiders own 24.26% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. California State Teachers Retirement System grew its holdings in Tempus AI by 6,379.2% during the 2nd quarter. California State Teachers Retirement System now owns 6,977,205 shares of the company’s stock valued at $404,189,000 after buying an additional 6,869,519 shares in the last quarter. Voloridge Investment Management LLC boosted its position in Tempus AI by 183.0% during the 3rd quarter. Voloridge Investment Management LLC now owns 1,607,083 shares of the company’s stock valued at $129,708,000 after acquiring an additional 1,039,176 shares in the last quarter. AQR Capital Management LLC bought a new position in Tempus AI in the second quarter worth about $54,020,000. Sumitomo Mitsui Trust Group Inc. lifted its position in 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 valued at $195,636,000 after acquiring an additional 821,490 shares during the last quarter. Finally, Amova Asset Management Americas Inc. grew its holdings in Tempus AI by 23.4% in the first quarter. Amova Asset Management Americas Inc. now owns 4,326,313 shares of the company’s stock worth $195,549,000 after purchasing an additional 821,490 shares during the last quarter. Hedge funds and other institutional investors own 24.22% of the company’s stock.

Tempus AI Company Profile

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.