Tempus AI (NASDAQ:TEM) Stock Price Down 7.4% – Should You Sell?

Tempus AI, Inc. (NASDAQ:TEM)’s share price dropped 7.4% on Monday . The company traded as low as $66.93 and last traded at $67.2750. 4,797,900 shares were traded during trading, a decline of 20% from the average session volume of 5,995,311 shares. The stock had previously closed at $72.69.

Analyst Ratings Changes

A number of brokerages recently issued reports on TEM. BTIG Research boosted their price target on Tempus AI from $70.00 to $80.00 and gave the company a “buy” rating in a report on Thursday. Freedom Capital upgraded Tempus AI to a “hold” rating in a report on Tuesday, June 30th. TD Cowen reiterated a “buy” rating on shares of Tempus AI in a research report on Wednesday, July 15th. Stifel Nicolaus reduced their target price on Tempus AI from $60.00 to $50.00 and set a “hold” rating on the stock in a research note on Monday, August 3rd. Finally, HC Wainwright decreased their target price on Tempus AI from $64.00 to $56.00 and set a “buy” rating for the company in a report on Monday, August 3rd. Nine analysts have rated the stock with a Buy rating, six have given a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, Tempus AI has an average rating of “Hold” and a consensus price target of $65.69.

Tempus AI Trading Down 7.1%

The company has a market capitalization of $12.18 billion, a P/E ratio of -46.74 and a beta of 3.58. The stock’s 50 day moving average is $52.93 and its 200-day moving average is $51.31. The company has a debt-to-equity ratio of 3.06, a current ratio of 3.30 and a quick ratio of 3.16.

Tempus AI (NASDAQ:TEM) last issued 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. Tempus AI had a negative net margin of 17.77% and a negative return on equity of 50.28%. The business had revenue of $382.49 million during the quarter, compared to analyst estimates of $379.69 million. During the same period last year, the business posted ($0.22) earnings per share. Tempus AI’s quarterly revenue was up 21.6% compared to the same quarter last year. As a group, equities research analysts anticipate that Tempus AI, Inc. will post -1.38 earnings per share for the current year.

Insider Activity at Tempus AI

In related news, EVP Andrew Polovin sold 7,927 shares of the company’s stock in a transaction 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 sale, the executive vice president directly owned 138,140 shares of the company’s stock, valued at $7,735,840. This represents a 5.43% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at 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 William Rogers sold 26,313 shares of the stock in a transaction on Wednesday, August 19th. The stock was sold at an average price of $60.00, for a total value of $1,578,780.00. Following the completion of the transaction, 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 SEC filing for this sale provides additional information. 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 a total of 943,202 shares of company stock valued at $46,417,587 over the last ninety days. Insiders own 24.26% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the business. Victory Capital Management Inc. lifted its holdings in Tempus AI by 1.5% during the third quarter. Victory Capital Management Inc. now owns 11,078 shares of the company’s stock valued at $894,000 after purchasing an additional 162 shares in the last quarter. Truist Financial Corp grew its position in shares of Tempus AI by 5.8% during the fourth quarter. Truist Financial Corp now owns 3,532 shares of the company’s stock valued at $209,000 after purchasing an additional 194 shares in the last quarter. Farther Finance Advisors LLC grew its holdings in Tempus AI by 3.5% during the 4th quarter. Farther Finance Advisors LLC now owns 6,390 shares of the company’s stock valued at $377,000 after buying an additional 219 shares in the last quarter. SeaCrest Wealth Management LLC raised its stake in Tempus AI by 3.7% during the third quarter. SeaCrest Wealth Management LLC now owns 6,488 shares of the company’s stock valued at $524,000 after purchasing an additional 229 shares in the last quarter. Finally, Geneos Wealth Management Inc. raised its position in shares of Tempus AI by 29.4% during the 4th quarter. Geneos Wealth Management Inc. now owns 1,100 shares of the company’s stock valued at $65,000 after buying an additional 250 shares in the last quarter. 24.22% of the stock is owned by hedge funds and other institutional investors.

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.