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

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

Wall Street Analyst Weigh In

TEM has been the topic of a number of recent analyst reports. 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. Piper Sandler dropped their price objective on Tempus AI from $58.00 to $56.00 and set a “neutral” rating on the stock in a research note on Tuesday, August 4th. Needham & Company LLC restated a “buy” rating and set a $75.00 price objective on shares of Tempus AI in a report on Friday, July 31st. Guggenheim lifted their target price on Tempus AI from $60.00 to $65.00 and gave the company a “buy” rating in a research report on Thursday, July 16th. Finally, Wall Street Zen upgraded Tempus AI from a “sell” rating to a “hold” rating in a report on Saturday, July 25th. Nine equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of “Hold” and an average price target of $65.69.

Tempus AI Stock Performance

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

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

Insider Activity at Tempus AI

In other news, CEO Ryan Fukushima sold 41,095 shares of Tempus AI stock in a transaction 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 transaction, the chief executive officer directly owned 562,463 shares in the company, valued at approximately $27,903,789.43. This trade represents a 6.81% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Eric P. Lefkofsky sold 132,591 shares of the firm’s stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $49.61, for a total value of $6,577,839.51. Following the sale, the chief executive officer directly owned 2,098,130 shares in the company, valued at approximately $104,088,229.30. The trade was a 5.94% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 943,202 shares of company stock valued at $46,417,587 over the last 90 days. Insiders own 24.26% of the company’s stock.

Institutional Trading of Tempus AI

Several hedge funds have recently modified their holdings of the company. JPL Wealth Management LLC purchased a new position in shares of Tempus AI in the 3rd quarter worth approximately $26,000. Los Angeles Capital Management LLC acquired a new stake in Tempus AI in the fourth quarter valued at approximately $27,000. EMC Capital Management purchased a new position in Tempus AI in the second quarter worth $29,000. Harvest Fund Management Co. Ltd purchased a new position in Tempus AI in the third quarter worth $38,000. Finally, Whittier Trust Co. boosted its position in shares of Tempus AI by 190.0% in the 1st quarter. Whittier Trust Co. now owns 870 shares of the company’s stock worth $41,000 after purchasing an additional 570 shares in the last quarter. 24.22% of the stock is owned by hedge funds and other institutional investors.

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.