Tempus AI (NASDAQ:TEM) Trading Down 7.4% After Analyst Downgrade

Tempus AI, Inc. (NASDAQ:TEM)’s share price traded down 7.4% during trading on Wednesday after Needham & Company LLC lowered their price target on the stock from $100.00 to $75.00. Needham & Company LLC currently has a buy rating on the stock. Tempus AI traded as low as $53.80 and last traded at $53.6710. 4,198,853 shares were traded during trading, a decline of 26% from the average session volume of 5,636,385 shares. The stock had previously closed at $57.95.

A number of other research analysts have also recently weighed in on TEM. HC Wainwright cut their price objective on shares of Tempus AI from $98.00 to $89.00 and set a “buy” rating for the company in a report on Friday, November 7th. JPMorgan Chase & Co. cut their price target on Tempus AI from $85.00 to $80.00 and set a “neutral” rating for the company in a research note on Monday, December 15th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Tempus AI in a research report on Thursday, January 22nd. BTIG Research cut their price objective on Tempus AI from $105.00 to $90.00 and set a “buy” rating for the company in a research report on Wednesday. Finally, Morgan Stanley increased their target price on Tempus AI from $80.00 to $85.00 and gave the company an “overweight” rating in a research report on Monday, December 1st. Eight equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $82.58.

Insider Activity

In related news, EVP Erik Phelps sold 9,464 shares of the company’s stock in a transaction dated Thursday, February 19th. The shares were sold at an average price of $59.43, for a total value of $562,445.52. Following the completion of the sale, the executive vice president owned 79,816 shares of the company’s stock, valued at approximately $4,743,464.88. This represents a 10.60% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, CEO Eric P. Lefkofsky sold 166,250 shares of Tempus AI stock in a transaction dated Wednesday, January 28th. The stock was sold at an average price of $65.56, for a total transaction of $10,899,350.00. Following the transaction, the chief executive officer directly owned 8,941,533 shares in the company, valued at $586,206,903.48. This trade represents a 1.83% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 596,035 shares of company stock valued at $37,505,125 in the last 90 days. 26.27% of the stock is owned by insiders.

More Tempus AI News

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

• Positive Sentiment: Very strong revenue growth — Q4 revenue jumped ~83% YoY, beating consensus and showing broad strength across Diagnostics, MRD and Data businesses; RCV and retention metrics also look healthy. MarketBeat Q4 recap
• Positive Sentiment: FY‑2026 revenue guide is sizable — management outlined roughly $1.59B in 2026 revenue (≈25% growth guidance), which implies continued top‑line momentum and gives a clear growth runway to model. Seeking Alpha: 2026 revenue target
• Positive Sentiment: Margins improving — management reported narrower losses, higher gross profit and an adjusted EBITDA inflection to positive on a YoY basis, supporting the path to eventual sustained profitability. MarketBeat analysis
• Neutral Sentiment: Product/partnership expansion continues — launches like the HRD‑RNA algorithm and a lung‑screening partnership expand addressable market and could support longer‑term revenue, but near‑term financial impact is incremental. Yahoo Finance: product & partnership update
• Neutral Sentiment: Analysts largely remain constructive — several firms kept Buy/Overweight ratings (Morgan Stanley kept a $85 PT; Canaccord and others reiterated positives), showing institutional support despite the pullback. TipRanks: analyst notes
• Negative Sentiment: Profitability details disappointed some investors — headlines and market reaction focused on a wider‑than‑expected loss / operating shortfall in Q4 and ambiguity on the timing of full‑year profitability inflection, which undercut sentiment. Zacks: earnings miss / reaction
• Negative Sentiment: Price‑target cut and valuation concerns — BTIG trimmed its target from $105 to $90 (still constructive), highlighting mixed near‑term expectations; high leverage and elevated short interest add downside risk in volatile trading. Benzinga: BTIG target cut
• Negative Sentiment: Market reaction: despite beat‑and‑raise elements, investors sold on the mixed profit signal and cautious tone — that combination explains today’s pullback. 247WallSt: mixed reaction

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the business. Cranbrook Wealth Management LLC purchased a new stake in Tempus AI in the third quarter valued at $25,000. JPL Wealth Management LLC purchased a new stake in Tempus AI in the 3rd quarter valued at about $26,000. Los Angeles Capital Management LLC acquired a new position in Tempus AI in the fourth quarter valued at about $27,000. GAMMA Investing LLC purchased a new position in Tempus AI during the third quarter worth about $28,000. Finally, Allworth Financial LP increased its position in shares of Tempus AI by 5,000.0% during the second quarter. Allworth Financial LP now owns 459 shares of the company’s stock valued at $29,000 after acquiring an additional 450 shares during the last quarter. 24.22% of the stock is currently owned by institutional investors and hedge funds.

Tempus AI Stock Down 7.5%

The business’s 50 day moving average price is $61.92 and its 200-day moving average price is $73.59. The company has a debt-to-equity ratio of 2.45, a quick ratio of 3.12 and a current ratio of 3.28. The firm has a market capitalization of $9.54 billion, a PE ratio of -44.99 and a beta of 5.22.

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.