Tempus AI (NASDAQ:TEM) Sees Large Volume Increase – Still a Buy?

Tempus AI, Inc. (NASDAQ:TEM) shares saw an uptick in trading volume on Thursday . Approximately 6,078,808 shares traded hands during mid-day trading, an increase of 1% from the previous session’s volume of 6,037,241 shares.The stock last traded at $79.8320 and had previously closed at $69.97.

Wall Street Analyst Weigh In

Several equities research analysts have recently issued reports on TEM shares. Stifel Nicolaus lowered their target price on shares of Tempus AI from $60.00 to $50.00 and set a “hold” rating on the stock in a research note on Monday, August 3rd. UBS Group began coverage on Tempus AI in a report on Wednesday, September 9th. They issued a “neutral” rating and a $70.00 price target for the company. Lake Street Capital downgraded Tempus AI to a “hold” rating in a research report on Monday, July 20th. Piper Sandler raised Tempus AI from a “neutral” rating to an “overweight” rating and raised their price objective for the company from $56.00 to $76.00 in a report on Tuesday, September 1st. Finally, Freedom Capital upgraded Tempus AI to a “hold” rating in a research report on Tuesday, June 30th. Eleven research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Hold” and an average price target of $69.33.

Tempus AI Stock Up 14.1%

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 business’s 50 day moving average price is $56.42 and its 200 day moving average price is $52.53. The firm has a market cap of $14.40 billion, a PE ratio of -55.52 and a beta of 3.72.

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

Insider Buying and Selling

In related news, EVP Andrew Polovin sold 7,927 shares of the stock in a transaction that occurred on Wednesday, August 19th. The stock was sold at an average price of $56.00, for a total value of $443,912.00. Following the completion of the sale, the executive vice president owned 138,140 shares of the company’s stock, valued at approximately $7,735,840. This trade represents a 5.43% decrease in their ownership of the stock. The transaction 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, CFO James Rogers sold 26,313 shares of the firm’s stock in a transaction dated 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. The trade was a 19.88% decrease in their ownership of the stock. 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 have sold 1,043,988 shares of company stock worth $56,963,417 in the last 90 days. Corporate insiders own 24.26% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of TEM. Amova Asset Management Americas Inc. increased its position in shares of Tempus AI by 1.2% during the fourth quarter. Amova Asset Management Americas Inc. now owns 3,504,823 shares of the company’s stock valued at $206,960,000 after acquiring an additional 41,728 shares during the last quarter. Sumitomo Mitsui Trust Group Inc. boosted its position in shares of Tempus AI by 23.4% during the 1st 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. Geode Capital Management LLC increased its holdings in Tempus AI by 8.2% in the 4th quarter. Geode Capital Management LLC now owns 1,870,510 shares of the company’s stock valued at $110,478,000 after purchasing an additional 141,680 shares during the last quarter. Franklin Resources Inc. increased its holdings in Tempus AI by 27.9% in the 4th quarter. Franklin Resources Inc. now owns 1,861,782 shares of the company’s stock valued at $109,938,000 after purchasing an additional 405,662 shares during the last quarter. Finally, Lingotto Investment Management LLP lifted its stake in Tempus AI by 45.9% during the fourth quarter. Lingotto Investment Management LLP now owns 1,143,526 shares of the company’s stock worth $67,525,000 after purchasing an additional 359,667 shares in the last quarter. Institutional investors and hedge funds own 24.22% of the company’s stock.

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.