Tempus AI Sees Unusually Large Options Volume (NASDAQ:TEM)

Tempus AI, Inc. (NASDAQ:TEM) was the target of some unusual options trading on Thursday. Investors bought 66,754 call options on the stock. This represents an increase of 118% compared to the average volume of 30,651 call options.

Tempus AI Price Performance

Shares of NASDAQ TEM traded up $10.15 during mid-day trading on Thursday, hitting $80.12. 9,727,220 shares of the company’s stock traded hands, compared to its average volume of 6,076,302. The company’s 50-day moving average is $56.42 and its two-hundred day moving average is $52.53. 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 capitalization of $14.46 billion, a P/E ratio of -55.49 and a beta of 3.72. Tempus AI has a 1 year low of $40.77 and a 1 year high of $104.32.

Tempus AI (NASDAQ:TEM) last announced its quarterly earnings results on Thursday, July 30th. The company reported ($0.04) EPS for the quarter, beating analysts’ consensus estimates 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 firm had revenue of $382.49 million during the quarter, compared to the consensus estimate of $379.69 million. During the same quarter last year, the firm earned ($0.22) EPS. The firm’s revenue for the quarter was up 21.6% compared to the same quarter last year. On average, equities analysts anticipate that Tempus AI will post -1.38 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, CFO James Rogers sold 26,313 shares of Tempus AI stock in a transaction that occurred on Wednesday, August 19th. The stock was sold at an average price of $60.00, for a total transaction of $1,578,780.00. Following the sale, the chief financial officer owned 106,024 shares of the company’s stock, valued at approximately $6,361,440. This trade represents a 19.88% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 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, EVP Andrew Polovin sold 22,148 shares of Tempus AI stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $49.61, for a total value of $1,098,762.28. Following the sale, the executive vice president directly owned 146,067 shares in the company, valued at $7,246,383.87. This trade represents a 13.17% decrease in their position. 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. Insiders have sold 1,043,988 shares of company stock valued at $56,963,417 over the last three months. Insiders own 24.26% of the company’s stock.

Hedge Funds Weigh In On Tempus AI

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Amova Asset Management Americas Inc. boosted its holdings in Tempus AI by 23.4% during the 1st quarter. Amova Asset Management Americas Inc. now owns 4,326,313 shares of the company’s stock valued at $195,549,000 after acquiring an additional 821,490 shares during the period. Sumitomo Mitsui Trust Group Inc. increased its stake in Tempus AI by 23.4% in 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. Norges Bank bought a new stake in shares of Tempus AI during the fourth quarter worth $48,234,000. Franklin Resources Inc. lifted its position in shares of Tempus AI by 27.9% during the fourth quarter. Franklin Resources Inc. now owns 1,861,782 shares of the company’s stock worth $109,938,000 after purchasing an additional 405,662 shares during the last quarter. Finally, Lingotto Investment Management LLP boosted its stake in shares of Tempus AI by 45.9% during the fourth quarter. Lingotto Investment Management LLP now owns 1,143,526 shares of the company’s stock valued at $67,525,000 after purchasing an additional 359,667 shares during the period. Hedge funds and other institutional investors own 24.22% of the company’s stock.

Analyst Upgrades and Downgrades

TEM has been the subject of several research reports. Needham & Company LLC reissued a “buy” rating and set a $75.00 price objective on shares of Tempus AI in a report on Friday, July 31st. Freedom Capital raised Tempus AI to a “hold” rating in a research note on Tuesday, June 30th. Stifel Nicolaus cut their price target on Tempus AI from $60.00 to $50.00 and set a “hold” rating for the company in a report on Monday, August 3rd. HC Wainwright lifted their price objective on Tempus AI from $56.00 to $66.00 and gave the stock a “buy” rating in a research note on Friday, September 11th. Finally, Lake Street Capital cut Tempus AI to a “hold” rating in a report on Monday, July 20th. Eleven investment analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, Tempus AI presently has an average rating of “Hold” and a consensus price target of $69.33.

About Tempus AI

Tempus AI, Inc is a healthcare technology company focused on applying artificial intelligence and data analytics to precision medicine. The company combines molecular testing, clinical data and machine learning to help physicians make more informed treatment decisions and support the development of new therapies.

Tempus provides genomic and diagnostic testing services, including testing intended to identify clinically relevant mutations and other biomarkers. Its technology platform also organizes and analyzes clinical and molecular data, while its AI-enabled tools are designed to assist healthcare professionals with patient care, research and workflow management.

The company serves healthcare providers, patients, pharmaceutical companies and biotechnology researchers, primarily in the United States.