Investors Purchase High Volume of Call Options on Tempus AI (NASDAQ:TEM)

Tempus AI, Inc. (NASDAQ:TEM) was the recipient of unusually large options trading on Thursday. Traders acquired 33,967 call options on the stock. This represents an increase of approximately 37% compared to the average volume of 24,823 call options.

Analysts Set New Price Targets

A number of analysts have issued reports on TEM shares. Morgan Stanley cut their price objective on shares of Tempus AI from $85.00 to $70.00 and set an “overweight” rating for the company in a report on Tuesday, March 3rd. Stifel Nicolaus set a $60.00 price target on shares of Tempus AI in a research report on Wednesday, February 25th. Wall Street Zen upgraded Tempus AI from a “sell” rating to a “hold” rating in a research note on Saturday, June 6th. TD Cowen raised their price objective on Tempus AI from $65.00 to $68.00 and gave the stock a “buy” rating in a research note on Wednesday, May 6th. Finally, Jefferies Financial Group started coverage on Tempus AI in a report on Monday, April 13th. They issued an “underperform” rating and a $35.00 price objective for the company. Nine research analysts have rated the stock with a Buy rating, three have issued 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 “Moderate Buy” and an average price target of $68.54.

Tempus AI Price Performance

Tempus AI stock traded up $2.57 during trading hours on Thursday, reaching $54.51. 4,905,007 shares of the stock were exchanged, compared to its average volume of 5,914,523. 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 has a twelve month low of $41.73 and a twelve month high of $104.32. The company has a market cap of $9.79 billion, a P/E ratio of -31.73 and a beta of 3.62. The stock has a 50 day moving average of $49.97 and a two-hundred day moving average of $55.23.

Tempus AI (NASDAQ:TEM) last issued its earnings results on Tuesday, May 5th. The company reported ($0.13) EPS for the quarter, beating the consensus estimate of ($0.21) by $0.08. Tempus AI had a negative net margin of 22.20% and a negative return on equity of 53.83%. The company had revenue of $348.12 million during the quarter, compared to analysts’ expectations of $345.44 million. During the same period in the previous year, the company earned ($0.24) EPS. The business’s revenue for the quarter was up 36.1% compared to the same quarter last year. Equities analysts expect that Tempus AI will post -1.35 EPS for the current fiscal year.

Insider Activity

In related news, CAO Ryan M. Bartolucci sold 4,116 shares of the company’s stock in a transaction dated Tuesday, May 19th. The shares were sold at an average price of $44.07, for a total value of $181,392.12. Following the transaction, the chief accounting officer directly owned 74,041 shares in the company, valued at approximately $3,262,986.87. This represents a 5.27% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Ryan Fukushima sold 13,550 shares of the company’s stock in a transaction dated Tuesday, May 19th. The shares were sold at an average price of $44.07, for a total transaction of $597,148.50. Following the completion of the transaction, the chief executive officer owned 603,558 shares in the company, valued at $26,598,801.06. This trade represents a 2.20% decrease in their ownership of the stock. 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. Over the last ninety days, insiders have sold 392,307 shares of company stock worth $18,901,264. Corporate insiders own 24.26% of the company’s stock.

Institutional Inflows and Outflows

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

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.