Traders Buy Large Volume of Tempus AI Call Options (NASDAQ:TEM)

Tempus AI, Inc. (NASDAQ:TEM) was the target of unusually large options trading activity on Thursday. Stock investors purchased 66,754 call options on the stock. This is an increase of 118% compared to the typical daily volume of 30,651 call options.

Tempus AI News Roundup

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

• Positive Sentiment: CEO commentary outlining Tempus AI’s growth strategy and projected Medicare revenue has strengthened confidence that reimbursement expansion could provide a significant new revenue stream. Tempus AI Stock Roars Back 92% From July Low After CEO Lays Out Growth Plan
• Positive Sentiment: Morgan Stanley’s updated outlook reportedly incorporated additional reimbursement-driven revenue potential, helping fuel a sharp weekly advance in TEM shares and reinforcing the bullish growth narrative. Tempus AI Is Ripping 30% Higher This Week After Morgan Stanley Boosts Revenue Outlook
• Positive Sentiment: Trading momentum remains strong: shares have rebounded roughly 92% to 95% from the July low, with market capitalization moving above $14 billion. Above-average volume and elevated call-option activity indicate substantial speculative interest. Tempus AI Stock Is Soaring
• Neutral Sentiment: Analysts and market commentators are assessing whether the recent surge can continue. The rally has improved sentiment, but the sharp move also raises the risk of profit-taking and increased volatility. Strength Seen in Tempus
• Negative Sentiment: Zacks cautioned that recent earnings-estimate revision trends may not support another near-term advance, while brokerages maintain an average “Hold” rating. Tempus also remains unprofitable, making the stock particularly sensitive to valuation concerns and changes in growth expectations. Tempus AI Receives Average Hold Rating

Tempus AI Stock Down 3.1%

TEM stock opened at $77.84 on Friday. Tempus AI has a twelve month low of $40.77 and a twelve month high of $104.32. The company has a quick ratio of 3.16, a current ratio of 3.30 and a debt-to-equity ratio of 3.06. The stock’s 50 day moving average is $57.19 and its 200-day moving average is $52.90. The firm has a market capitalization of $14.04 billion, a PE ratio of -54.06 and a beta of 3.72.

Tempus AI (NASDAQ:TEM) last announced its quarterly earnings results on Thursday, July 30th. The company reported ($0.04) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.14) by $0.10. The business had revenue of $382.49 million during the quarter, compared to the consensus estimate 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 revenue was up 21.6% compared to the same quarter last year. During the same quarter in the prior year, the company posted ($0.22) earnings per share. Sell-side analysts expect that Tempus AI will post -1.38 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of equities research analysts have commented on the company. Needham & Company LLC reissued a “buy” rating and issued a $75.00 price objective on shares of Tempus AI in a research note on Friday, July 31st. Roth Capital assumed coverage on Tempus AI in a research report on Tuesday, September 8th. They set a “neutral” rating and a $67.00 target price on the stock. Raymond James Financial set a $80.00 target price on Tempus AI in a report on Wednesday, September 2nd. Wall Street Zen raised shares of Tempus AI from a “sell” rating to a “hold” rating in a research report on Saturday, July 25th. Finally, TD Cowen restated a “buy” rating on shares of Tempus AI in a research note on Wednesday, July 15th. Eleven research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $69.33.

Insider Buying and Selling

In other news, CFO James Rogers sold 26,313 shares of the stock in a transaction dated Wednesday, August 19th. The shares were sold at an average price of $60.00, for a total transaction of $1,578,780.00. Following the transaction, the chief financial officer owned 106,024 shares of the company’s stock, valued at $6,361,440. This represents a 19.88% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available 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, CEO Eric P. Lefkofsky sold 250,000 shares of the firm’s stock in a transaction dated Tuesday, July 28th. The shares were sold at an average price of $42.06, for a total value of $10,515,000.00. Following the completion of the sale, the chief executive officer owned 200,000 shares of the company’s stock, valued at approximately $8,412,000. This represents a 55.56% 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. Insiders have sold a total of 1,254,701 shares of company stock valued at $73,877,392 over the last ninety days. 24.26% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Tempus AI

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Truist Financial Corp grew its holdings in shares of Tempus AI by 5.8% in the fourth quarter. Truist Financial Corp now owns 3,532 shares of the company’s stock valued at $209,000 after acquiring an additional 194 shares in the last quarter. Main Management ETF Advisors LLC increased its position in shares of Tempus AI by 1.0% during the fourth quarter. Main Management ETF Advisors LLC now owns 26,622 shares of the company’s stock valued at $1,572,000 after acquiring an additional 272 shares during the last quarter. Arkadios Wealth Advisors lifted its holdings in Tempus AI by 9.6% during the first quarter. Arkadios Wealth Advisors now owns 4,963 shares of the company’s stock worth $224,000 after acquiring an additional 435 shares during the period. EMC Capital Management bought a new stake in Tempus AI during the second quarter worth $29,000. Finally, NewEdge Advisors LLC boosted its position in Tempus AI by 1.3% in the first quarter. NewEdge Advisors LLC now owns 42,996 shares of the company’s stock worth $1,944,000 after purchasing an additional 536 shares during the last quarter. Hedge funds and other institutional investors 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.