Tempus AI (NASDAQ:TEM) Stock Falls 6.1% – Here’s Why

Tempus AI, Inc. (NASDAQ:TEM)’s stock price traded down 6.1% on Thursday. The stock traded as low as $77.30 and last traded at $76.8740. 3,388,758 shares were traded during mid-day trading, a decline of 45% from the average session volume of 6,146,030 shares. The stock had previously closed at $81.90.

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on the stock. TD Cowen restated a “buy” rating on shares of Tempus AI in a report on Wednesday, July 15th. Guggenheim increased their price objective on Tempus AI from $65.00 to $92.00 and gave the stock a “buy” rating in a research report on Thursday. Wall Street Zen raised Tempus AI from a “sell” rating to a “hold” rating in a research note on Saturday, July 25th. Lake Street Capital downgraded Tempus AI to a “hold” rating in a research report on Monday, July 20th. Finally, Weiss Ratings lowered shares of Tempus AI from a “sell (d-)” rating to a “sell (e+)” rating in a report on Monday. Eleven research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Hold” and an average price target of $71.05.

Tempus AI Price Performance

The company has a debt-to-equity ratio of 3.06, a current ratio of 3.30 and a quick ratio of 3.16. The firm has a market capitalization of $13.83 billion, a price-to-earnings ratio of -53.21 and a beta of 3.54. The stock has a 50 day moving average price of $63.01 and a two-hundred day moving average price of $54.89.

Tempus AI (NASDAQ:TEM) last posted its 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 firm had revenue of $382.49 million for the quarter, compared to analyst estimates 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% on a year-over-year basis. During the same quarter in the prior year, the company earned ($0.22) EPS. As a group, analysts expect that Tempus AI, Inc. will post -1.38 EPS for the current year.

Insider Activity

In other Tempus AI news, CEO Ryan Fukushima sold 41,095 shares of the business’s stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $49.61, for a total value of $2,038,722.95. Following the completion of the transaction, the chief executive officer owned 562,463 shares in the company, valued at $27,903,789.43. The trade was a 6.81% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO James Rogers sold 26,313 shares of the company’s stock in a transaction on Wednesday, August 19th. The stock was sold at an average price of $60.00, for a total value of $1,578,780.00. Following the sale, the chief financial officer directly owned 106,024 shares in the company, valued at $6,361,440. This represents a 19.88% decrease in their position. The SEC filing for this sale provides additional information. 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. Over the last quarter, insiders sold 1,324,249 shares of company stock valued at $82,907,732. 24.26% of the stock is currently owned by company insiders.

Institutional Trading of Tempus AI

Hedge funds have recently modified their holdings of the stock. QRG Capital Management Inc. acquired a new stake in Tempus AI in the 2nd quarter valued at about $240,000. WINTON GROUP Ltd acquired a new position in shares of Tempus AI during the second quarter worth about $342,000. Engineers Gate Manager LP purchased a new stake in shares of Tempus AI during the second quarter worth approximately $637,000. Integrated Wealth Concepts LLC acquired a new stake in Tempus AI in the second quarter valued at approximately $145,000. Finally, Baird Financial Group Inc. lifted its stake in Tempus AI by 3.4% in the second quarter. Baird Financial Group Inc. now owns 30,434 shares of the company’s stock worth $1,763,000 after acquiring an additional 994 shares during the last quarter. 24.22% of the stock is currently owned by institutional investors and hedge funds.

Tempus AI Company Profile

Tempus AI, Inc is a technology company focused on applying artificial intelligence and data analytics to precision medicine. The company develops tools intended to help physicians make more informed treatment decisions by combining clinical information, molecular data and other health-related datasets.

Tempus provides genomic testing and diagnostic services, including sequencing and other molecular tests used primarily in oncology. Its platform also offers data and software solutions designed to support clinical research, pharmaceutical development, patient identification for clinical trials and the development of personalized treatment strategies.

Founded in 2015, Tempus is headquartered in Chicago and primarily serves healthcare providers, researchers and life sciences companies.