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

Tempus AI, Inc. (NASDAQ:TEM)’s stock price gapped down prior to trading on Monday . The stock had previously closed at $52.47, but opened at $49.78. Tempus AI shares last traded at $47.8080, with a volume of 2,257,086 shares trading hands.

Tempus AI News Roundup

Here are the key news stories impacting Tempus AI this week:

• Positive Sentiment: The Personalis acquisition could deepen Tempus AI’s position in precision oncology and expand its addressable market in cancer monitoring. Tempus AI (TEM) Is Buying Personalis For $1.5 Billion To Deepen Cancer Monitoring
• Positive Sentiment: Needham reaffirmed a Buy rating and set a $75 price target, suggesting analysts still see meaningful upside despite the transaction-related selloff. Needham on Tempus AI Inc (TEM): ‘Buyers of any weakness related to the transaction’
• Neutral Sentiment: Tempus said it signed a definitive merger agreement to acquire Personalis, giving investors more clarity on the structure and terms of the deal. Tempus AI Announces Merger Agreement to Acquire Personalis
• Negative Sentiment: The market is reacting cautiously to the size of the deal, likely due to dilution, integration risk, and the fact that both stocks fell after the announcement. Tempus AI Buys Personalis for $1.5 Billion, and Both Stocks Sink

Wall Street Analyst Weigh In

TEM has been the subject of a number of analyst reports. Freedom Capital raised Tempus AI to a “hold” rating in a report on Tuesday, June 30th. HC Wainwright lowered their target price on shares of Tempus AI from $95.00 to $64.00 and set a “buy” rating on the stock in a report on Monday, May 11th. BTIG Research reiterated a “buy” rating and set a $80.00 target price on shares of Tempus AI in a research report on Monday, June 1st. Weiss Ratings reissued a “sell (e+)” rating on shares of Tempus AI in a report on Wednesday, June 17th. Finally, Guggenheim boosted their price target on shares of Tempus AI from $60.00 to $65.00 and gave the company a “buy” rating in a research report on Thursday, July 16th. Nine investment analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $68.92.

Tempus AI Price Performance

The stock has a fifty day moving average of $51.64 and a two-hundred day moving average of $53.84. The stock has a market capitalization of $8.80 billion, a price-to-earnings ratio of -28.48 and a beta of 3.46. The company has a current ratio of 3.31, a quick ratio of 3.15 and a debt-to-equity ratio of 2.96.

Tempus AI (NASDAQ:TEM) last posted its quarterly earnings data on Tuesday, May 5th. The company reported ($0.13) EPS for the quarter, topping analysts’ consensus estimates of ($0.21) by $0.08. Tempus AI had a negative return on equity of 53.83% and a negative net margin of 22.20%.The company had revenue of $348.12 million for the quarter, compared to analyst estimates of $345.44 million. During the same quarter in the previous year, the firm earned ($0.24) earnings per share. The business’s revenue was up 36.1% on a year-over-year basis. As a group, equities research analysts forecast that Tempus AI, Inc. will post -1.35 earnings per share for the current year.

Insider Activity at Tempus AI

In other Tempus AI news, EVP Andrew Polovin sold 8,703 shares of the company’s stock in a transaction on Tuesday, May 19th. The stock was sold at an average price of $44.07, for a total transaction of $383,541.21. Following the transaction, the executive vice president owned 128,215 shares of the company’s stock, valued at approximately $5,650,435.05. This represents a 6.36% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Ryan Fukushima sold 33,284 shares of the stock in a transaction on Wednesday, July 8th. The shares were sold at an average price of $57.39, for a total value of $1,910,168.76. Following the completion of the transaction, the chief executive officer owned 167,763 shares in the company, valued at $9,627,918.57. The trade was a 16.56% decrease in their ownership of the stock. 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. Over the last 90 days, insiders have sold 616,043 shares of company stock worth $31,748,593. Company insiders own 24.26% of the company’s stock.

Hedge Funds Weigh In On Tempus AI

Hedge funds have recently added to or reduced their stakes in the company. JPL Wealth Management LLC acquired a new stake in Tempus AI in the third quarter worth about $26,000. Los Angeles Capital Management LLC acquired a new position in Tempus AI during the 4th quarter valued at about $27,000. Harvest Fund Management Co. Ltd bought a new position in shares of Tempus AI in the 3rd quarter valued at about $38,000. Danske Bank A S bought a new position in shares of Tempus AI in the 3rd quarter valued at about $48,000. Finally, Sunbelt Securities Inc. acquired a new stake in shares of Tempus AI during the 3rd quarter worth approximately $52,000. Institutional investors own 24.22% of the company’s stock.

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.